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Klöckner & Co SE
A Leading Multi Metal Distributor
M. M. Warburg & Co
Warburg Highlights 2013CFO
Marcus A. Ketter
June 7, 2013
Hamburg
Disclaimer
This presentation contains forward-looking statements which reflect the current views of the management of
Klöckner & Co SE with respect to future events. They generally are designated by the words “expect”, “assume”,
“presume”, “intend”, “estimate”, “strive for”, “aim for”, “plan”, “will”, “strive”, “outlook” and comparable expressions and
generally contain information that relates to expectations or goals for economic conditions, sales proceeds or other
yardsticks for the success of the enterprise. Forward-looking statements are based on currently valid plans, estimates
and expectations. You therefore should view them with caution. Such statements are subject to risks and factors of
uncertainty, most of which are difficult to assess and which generally are outside of the control of Klöckner & Co SE. The
relevant factors include the effects of significant strategic and operational initiatives, including the acquisition or
disposition of companies. If these or other risks and factors of uncertainty occur or if the assumptions on which the
statements are based turn out to be incorrect, the actual results of Klöckner & Co SE can deviate significantly from those
that are expressed or implied in these statements. Klöckner & Co SE cannot give any guarantee that the expectations or
goals will be attained. Klöckner & Co SE – notwithstanding existing obligations under laws pertaining to capital markets –
rejects any responsibility for updating the forward-looking statements through taking into consideration new information
or future events or other things.
In addition to the key data prepared in accordance with International Financial Reporting Standards, Klöckner & Co SE is
presenting non-GAAP key data such as EBITDA, EBIT, Net Working Capital and net financial liabilities that are not a
component of the accounting regulations. These key data are to be viewed as supplementary to, but not as a substitute
for data prepared in accordance with International Financial Reporting Standards. Non-GAAP key data are not subject to
IFRS or any other generally applicable accounting regulations. Other companies may base these concepts upon other
definitions.
2
Highlights and update on strategy02
Financials Q1 2013
Outlook
Appendix
03
04
05
Agenda
3
Overview01
Klöckner & Co SE at a glance01
CustomersDistributor / Service CenterProducers
Products :
Klöckner & Co SE
• Largest producer-independent steel and metal
distributor and one of the leading steel service
center companies in the European and American
markets combined
• Distribution and service platform with around 240
locations worldwide
• Key figures for 2012
Turnover: 7.1 million tons
Sales: €7.4 billion
EBITDA €139 million (before
restructuring)
Services:
• Machinery
and
mechanical
engineering
• Yellow Goods
• White Goods
• Miscellaneous
• Automotive
• Commercial/
residential
construction
• Infrastructure
4
Holistic solution from covering procurement, logistics and processing01
Suppliers Sourcing
Products
and services
Logistics /
distribution
• As a producer-
independent
distributor, our
customers
benefit from our
diverse national
and
international
procurement
options
Customers
• Procurement of
large quantities
• Strategic
partnerships
• Extensive
product range
• Excellent
product and
processing
quality
• Wide-ranging
service
provision
• Local presence
• Individual
delivery,
including 24-
hour-service
• More than
160,000
customers
• Average normal
order size
approx. €2,000
Klöckner & Co value chain
5
Global reach – local presence01
• With around 240 locations in 15 countries we assure local availability for our customers
• Austria
• Belgium
• Brazil
• China
• England
• France
• Germany
• Ireland
• Mexico
• Netherlands
• Puerto Rico
• Scotland
• Spain
• Switzerland
• USA
6
USA:
38%
Brazil:
1%
China:
1%
D*:
25%
F/BE:
13%
CH:
10%
NL:
3%
UK:
6%
ES: 3%
As of December 2012
Europe:
60%
* 2012 EEC included, but completely sold in Q1 2013
Acquisitions shift exposure towards more promising regions and products01
7
21% Long productsQuality steel/Stainless steel 8%
Aluminium 7%
Tubes 7%
46% Flat productsOthers 11%
Sales by product
Sales by markets
USAFrance/Belgium 13%
Switzerland 10%
UK
25% Germany*
Spain 3%
Netherlands 3%
Brazil 1%
China <1%
8%
38%
Machinery and
mechanical engineering26%
Miscellaneous 10%
Local dealers 12%
Household appliances/
Consumer goods 6%
36% Construction industry
Automotive industry 10%
Sales by industry
As of December 2012
* 2012 EEC included, but completely sold in Q1 2013
1%
Reliance
Ryerson
TK
Samuel
O'Neal
Russel
Macsteel
Metals USA
PNA
Namasco
Others
Europe
US
2007 2011
5%
AMDS
TK
KCO
Salzgitter
Tata
Others
5%
AMDS
TK
KCO
Salzgitter
Tata
Others
4%
Reliance
Ryerson
KloecknerMetals
TK
Others
• Position in the US significantly improved whereas market share in Europe is expected to remain
stable despite heavy restructuring measures
Source: Eurometal, Purchasing Magazine, Service Center News
Klöckner is together with TK the second largest steel and metal distributor in Europe
and number three in the US
01
8
Steel demand in EU-27 still well below pre crisis level01
• Continuous recovery in North America since 2009, but again sharp decline in EU-27
• Development in Brazil surprisingly weak since 2010, whereas steel demand in China is further
increasing
• High overcapacities in Europe and China disturb global balance of supply and demand
• Capacity utilization too low to strengthen margins through stronger price discipline
Source: WSA
198
183
120
145
153
140 139
2013e201220112010200920082007
142 131
84
111
121
2013e201220112010200920082007
22 24 19 26 25 26 27
201220112010200920082007 2013e
131 135
210
Installed steel production capacity in million t
Steel demand in million t
+34% -30%
-5%
ChinaBrazilNAFTAEU-27
133
35
+30%
-2%
2012
669
646
2011
624
2010
588
2009
551
2008
447
2007
418
2013e
>25%
>850
9
Highlights and update on strategy02
Financials Q1 2013
Outlook
Appendix
03
04
05
Agenda
10
Overview01
Strong benefit from restructuring – margins improving, costs down, but volumes are
lacking behind
02
11
First quarter overshadowed by macro uncertainty, price declines and severe weather
conditions in Europe; nevertheless turnover development in both regions beat markets
• Europe and also Americas started slowly into the year with turnover +3.8%qoq, but -11.4%yoy
(restructuring impact -3.3%p), sales was only stable qoq due to price decline all over the board,
-16.5%yoy
• Restructuring showing double success: gross margin improved from 17.7% to 18.6% and cost-cutting
of €16m feeding through to bottom line with €12m EBITDA impact
• EBITDA with €29m at low end of guidance range of €30-40m despite adverse conditions
• Restructuring well on track with 1,600 HC reduced and 50 sites closed
• European ABS-program extended until May 2016 with €360m (in Q2 Syndicated Loan extended until
May 2016 with 360m
• Q2: slight improvement in turnover and EBITDA to €35-45m
KCO 6.0 measures having strong impact on the P&L02
* After restructuring costs of €3m.Total GP effect: €41m
44*
-4
Price
Effect
-14
Volume
Effect
-23
EBITDA
Q1 2012
Variable
costs
29
EBITDA
Q1 2013
10
KCO 6.0
Fix-cost
effect
16
KCO
6.0 GP
effect
KCO 6.0 EBITDA
expenses
€12m
274280288
-7.5%
Q1 13Q4 12*Q3 12*Q2 12*
294
Q1 12*
296
-0.6% -2.2% -2.6% -2.3%
in €m
KCO 6.0 EBITDA impact
OPEX
12
• Turnover was 11.4% down on the prior
year
• Sales came down 16.5% on the prior
year, additionally impacted by falling
prices
Program measures
* incl. expenses due to initial application of IAS19 revised 2011 and excl. restructuring expenses.
Annual EBITDA contribution of ~€160m from 2014 onwards through restructuring
program KCO 6.0
02
13
Measures
• Program extension in France
• Realization of further synergy potential in the US
• Reduction of overall > 2.000 employees (= 17%) and ~70 sites
• Cost reduction by €190m
• Total annual EBITDA-impact increased to ~€160m (before: €150m)
• Reduction of NWC by €165m
• Additional cost of approximately €16m
Annual incremental EBITDA-impact
2013
2014
€51m
already realized
€65m
€45m
Total annual EBITDA-impact of ~€160m
2011-2012
€18m*
* End of April
02 Implementation of restructuring measures KCO 6.0 are progressing according to plan
14
• Sale of Eastern European
activities accomplished
• Restructuring France: Original
measures to be implemented
according to plan in Q2,
program extension with
additional 5 sites resolved and
implemented until year end
• Optimization program USA:
Merger and consolidation of
5 sites in order to increase
profitability and utilization of
further synergy potentials
Comments
240
290
Employees
Sites
UK
ESP
EEC GER BR
Q3 2011 Q1 2013
UK
ESP
F
EEC
10,212
11,577
GER
Holding
US
BR
Q3 2011
Europe
-1,042
Americas
Q1 2013
-24
-299
Reduced by 1,365, including temps ~1,600
220
End of 2013
F, USA
240
F ~9,600
End of 2013
Exposure to peripheral states in Europe is rather limited after restructuring02
15
Reduced by end of the year
6,923
2,000
European
Employees1)
44
14
155
European
sites2)
2) 1) Basis is September 2011
2) Distribution locations only
36%
9% 5%
20%
5%
23%
2%
95%
closed end of 2013
sold (EEC)
• 95% of European business is in Core Europe (Sales 2012)
Despite market distortion basis for reaching the 6% EBITDA-margin target
established through transformation of Group structure and cost cutting
02
16
• Exposure to historically more commoditized European general line distribution cut by half until 2015
BSS 2010
Macsteel 2011
Primary 2007
Canada 2008
USA
EEC 2013
Restructuring
KCO 6.0
€6.3bn €8.6bn
grow and
increase
margin
grow and
stabilize high
earnings level
improve
profitable
core
3% Canada
13% USA
14% CH
70%
European
general line
distribution
43% USA
1% EM
12% CH
9% BSS
35%
European
general line
distribution
KVT 2008
Temtco 2008
Brazil 2011
6.0 – 6.5%
6.0 – 6.5%
4.0 – 5.0%
2007 2015e
6.0%
Organic
growth
Major
acquisitions
EBITDA-
margin
target
Major
divestments /
restructuring
In the same period share of higher margin business will be increased by 11%pts02
17
Construction
42% Construction
35%
Construction
30%
Machinery
25%
Machinery
25% Machinery
28%
Automotive
6% Automotive
12%
Automotive
14%
Others
27%
Others
28%
Others
28%
2007 2013e 2015e
+6%pts
-7%pts
-5%pts
+5%pts
• Exposure to more commoditized construction business down from 42% in 2007 to 30% by 2015
31%
42%
Summary Klöckner & Co development and strategy02
Transformation process:
• KCO has improved its Group structure significantly since 2007
• Share of higher margin business has been increased substantially
• In Europe the exposure to commoditized general line distribution and the suffering peripheral states
has been heavily decreased
• Focus of further growth is concentrated on the more attractive US market
 Even if significant changes and improvements are so far not reflected in results because of
extremely weak market conditions, Klöckner & Co will strongly benefit from cost savings when
markets recover
18
Highlights and update on strategy02
Financials Q1 2013
Outlook
Appendix
03
04
05
Agenda
19
Overview01
Financials Q1 201303
20
EBITDA
Sales
Gross profit
Turnover
* Before restructuring costs
€1,945m
€1,625m
-16.5%
Q1 2013Q1 2012
1,857 Tto
-11.4%
Q1 2012 Q1 2013
1,646 Tto
-39.6%
Q1 2012 Q1 2013
€29m
€344m
€303m
-11.9%
Q1 2013Q1 2012
€47m*
€44m
1,587
1,885 1,885
1,739
1,945 1,964
1,847
1,633 1,625
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
+30.5%
Turnover and sales03
Sales (€m) & Americas shareTurnover (Tto) & Americas share
• Turnover increased less than usual qoq due
to economic uncertainty and also
restructuring impact (- 3.3%p)
• Additionally, both segments were impacted by
less working days compared to prior year
• Average prices per ton decreased
significantly in
Q1 qoq (Q1: €987 vs. Q4: €1,030)
21
1,646
1,498
1,763 1,765
1,636
1,857 1,863
1,764
1,585
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
+3.8%
-11.4%
-16.5%
-0.5%22.3
32.4
39.5 39.5
40.5 41.1
42.3 42.7 43.5
18.7
27.6
33.6
34.6
37.1 37.0 37.8
36.3 37.4
EBITDA (€m) / EBITDA-margin (%)
Gross profit and EBITDA03
Gross profit (€m) / Gross-margin (%)
* Before restructuring costs
22
353
337
318
307
344 344*
306
302* 303
22.3
17.9
16.8
17.6 17.7 17.5*
16.6
18.5* 18.6
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
** As restated for the initial application of IAS19 revised 2011
104
62
37
24*
47* 50*
18
21*
29
6.6
3.3
1.9
1.3
2.4* 2.5*
1.0
1.3*
1.8
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012**
Q2
2012**
Q3
2012**
Q4
2012**
Q1
2013
• Despite strongly declining prices, gross profit
margin remained stable compared to Q4 and
increased substantially vs. last year (+0.9%p)
• EBITDA-margin benefitting from strong cost
reduction, pulling out substantially higher
EBITDA out of roughly stable gross profit
334
571
698
646
752 766 746
677
716
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Key figures by segment03
Turnover (Tto) Sales (€m) EBITDA (€m)*
* EBITDA before restructuring; Restructuring costs: Europe: 2011: €10m in Q4; 2012: €3m in Q1, €17m in Q2, €-1m in Q3 and €57m in Q4; Americas: 2012: €1m in Q4
Turnover (Tto) Sales (€m) EBITDA (€m)*
EuropeAmericas
-15.8%
1,164 1,192
1,067
990
1,105 1,097
1,018
908 930
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
1,290
1,365
1,251
1,137
1,223 1,237
1,149
1,041 1,017
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
-16.9%
297
520
634
602
722 727 698
592 608
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
-4.8% -15.8%
23
** As restated for the initial application of IAS19 revised 2011
81
50
24 22 22
35
12
16 14
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012**
Q2
2012**
Q3
2012**
Q4
2012**
Q1
2013
30
23
15
13
29
22
12
16
21
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012**
Q2
2012**
Q3
2012**
Q4
2012**
Q1
2013
Cash flow reflects seasonal built up of NWC03
Cash flow reconciliation in Q1 2013 (€m)
• NWC seasonally increased
• Capex (net) of €6m
• Cash interests are less than 1/3 of P&L
interest charges due to accretion of debt
component for outstanding convertibles and
interest costs on pensions
Comments
18
-7
-5
-70
29
-41
-6
-35
EBITDA
reported
Change in
NWC
Taxes Other CF from
operating
activities
Capex
net
Free CFInterest
24
Development of net financial debt in Q1 2013 (€m)
2012
CF from
operating
activities
Capex
(net)
Other*
2013
482
-19-6
-35422
* exchange rate effects, interest
• Equity ratio still solid at 37%
• Net debt of €482m
• Gearing* at 35%
• NWC seasonally increased by €84m to €1,491m
** As restated for the initial application of IAS 19 rev. 2011
Strong balance sheet03
* Gearing = Net debt/Equity attributable to shareholders of
Klöckner & Co SE less goodwill from business
combinations subsequent to May 28, 2010
Comments
25
Assets FY 2012 vs. Q1 2013
610 663
787 923
Liquidity
Other current assets
Trade receivables
Inventories
Non-current assets
Assets
Q1 2013
4,076
105
1,286
1,099
Assets
FY 2012**
3,880
122
1,254
1,107
994Current liabilities
Non-current liabilities
Equity
Equity &
liabilities
Q1 2013
4,076
1,086
1,483
1,507
Equity &
liabilities
FY 2012**
3,880
1,384
1,502
Equity & liabilities FY 2012 vs. Q1 2013
38.7%
37.0%
Statement of changes in equity03
26
* As restated for the initial application of IAS 19 rev. 2011
1.634
IAS 19R
13
Net Income
-16
Equity as of
December 31,
2012 (as restated
for IAS19)
1,502
Revised equity
as of December
31, 2012*
1,634
-132
Equity as of
March 31, 2013
1,507
F/X and Hedging
Reserves
8
Comprehensive income: +€4m
• Improvement mainly
due to higher interest
rates
• Net investment hedges
• f/x foreign subsidiaries
Balanced maturity profile March 201303
27
Maturity profile of committed facilities and drawn
amounts (€m)
€m Facility Committed
Drawn amount
Q1 2013* FY 2012*
Bilateral Facilities 1) 583 79 98
Other Bonds 9 10 9
ABS 5) 575 281 161
Syndicated Loan 5) 360 162 161
Promissory Note 343 351 348
Total Senior Debt 1,870 883 777
Convertible 2009 2) 98 95 92
Convertible 2010 2) 186 167 164
Total Debt 2,154 1,145 1,033
Cash 4) 663 611
Net Debt 482 422
€m Q1 2013
Adjusted equity 1,359
Net debt 482
Gearing 3) 35%
*Including interest
1) Including finance lease
2) Drawn amount excludes equity component
3) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent
to May 28, 2010
4) Incl. cash in assets held for sale
5) European ABS and Syndicated Loan renewed in Q2/2013
6) Incl. Swiss facilities of €230m which are automatically renewed on a yearly basis
Left side: committed facilities Right side: drawn amounts
6) 5)
62 62
70 70
136186
98987575
160
213
68
27
8
8
1010
12
31
2016
864
258
372
215
Thereafter
240
473
136
360
360
266
2015
266
186
172
2014
178
18106
2013
373
298
ABS Syndicated loanBilaterals Promissory notes Convertibles
Highlights and update on strategy02
Financials Q1 2013
Outlook
Appendix
03
04
05
Agenda
28
Overview01
Outlook
• Q2 2013
• Turnover to be sequentially up in Q2 rather based on seasonality than on economic improvement
• EBITDA in Q2 against this background expected to be between €35-45m
• FY 2013
• Guidance of stable turnover and sales with EBITDA of €200m looks increasingly unrealistic, since
there are currently no signs visible of a still widely anticipated recovery in second half of the year
• Restructuring measures in France further extended. EBITDA contribution of overall €65m in 2013
and €45m in 2014
• Optimization program to improve profitability in the US by utilizing synergy potentials after strong
growth initiated
• Positive free cash flow expected
• Further reduction of net debt despite restructuring costs
04
29
Highlights and update on strategy02
Financials Q1 2013
Outlook
Appendix
03
04
05
Agenda
30
Overview01
Quarterly results and FY results 2008-201305
31
(€m)
Q1
2013
Q4
2012*
Q3
2012*
Q2
2012*
Q1
2012*
Q4
2011
Q3
2011
Q2
2011
Q1
2011
FY
2012*
FY
2011
FY
2010
FY
2009
FY
2008
Turnover (Tto) 1,646 1,585 1,764 1,863 1,857 1,636 1,765 1,763 1,498 7,068 6,661 5,314 4,119 5,974
Sales 1,625 1,633 1,847 1,964 1,945 1,739 1,885 1,885 1,587 7,388 7,095 5,198 3,860 6,750
Gross profit 303 298 306 340 344 307 318 337 353 1,288 1,315 1,136 645 1,366
% margin 18.6 18.3 16.6 17.3 17.7 17.6 16.8 17.9 22.3 17.4 18.5 21.9 16.7 20.2
EBITDA rep. 29 -35 18 33 44 14 37 62 104 62 217 238 -68 601
% margin 1.8 -2.1 1.0 1.7 2.3 0.8 1.9 3.3 6.6 0.8 3.1 4.6 -1.8 8.9
EBIT 2 -89 -9 -24 18 -18 8 36 86 -103 111 152 -178 533
Financial result -19 -14 -22 -18 -25 -21 -22 -21 -19 -76 -84 -67 -62 -70
Income before taxes -16 -103 -31 -42 -8 -39 -15 15 66 -179 27 84 -240 463
Income taxes 1 -19 3 3 -4 12 3 -9 -22 -19 -17 -4 54 -79
Net income -16 -123 -29 -39 -12 -27 -12 5 44 -198 10 80 -186 384
Minority interests 0 -1 -1 0 1 -1 -1 0 1 -3 -1 3 3 -14
Net income KlöCo -16 -122 -28 -39 -11 -27 -11 5 43 -195 12 78 -188 398
EPS basic (€) -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 0.65 -1.95 0.14 1.17 -3.61 8.56
EPS diluted (€) -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 0.60 -1.95 0.14 1.17 -3.61 8.11
* As restated due to initial application of IAS19 revised 2011.
Strong Growth: 24 acquisitions since the IPO05
32
Acquisitions1) Acquired sales1),2)
€141m
€567m
€108m
2
4
12
2
2005 2006 2007 2008 2009 2010
4
€231m
€712m
2011
2
€1.15bn
¹ Date of announcement 2 Sales in the year prior to acquisitions
Country Acquired 1) Company Sales (FY)2)
GER Mar 2010 Becker Stahl-Service €600m
CH Jan 2010 Bläsi €32m
2010 4 acquisitions €712m
US Mar 2008 Temtco €226m
UK Jan 2008 Multitubes €5m
2008 2 acquisitions €231m
CH Sep 2007 Lehner & Tonossi €9m
UK Sep 2007 Interpipe €14m
US Sep 2007 ScanSteel €7m
BG Aug 2007 Metalsnab €36m
UK Jun 2007 Westok €26m
US May 2007 Premier Steel €23m
GER Apr 2007 Zweygart €11m
GER Apr 2007 Max Carl €15m
GER Apr 2007 Edelstahlservice €17m
US Apr 2007 Primary Steel €360m
NL Apr 2007 Teuling €14m
F Jan 2007 Tournier €35m
2007 12 acquisitions €567m
2006 4 acquisitions €108m
USA Dec 2010 Lake Steel €50m
USA Sep 2010 Angeles Welding €30m
Brazil May 2011 Frefer €150m
USA April 2011 Macsteel €1bn
2011 2 acquisitions €1,150m
Comments
Balance sheet as of December 31, 201205
33
(€m) March 31, 2013 December 31, 2012*
Non-current assets 1,099 1,107
Inventories 1,287 1,254
Trade receivables 923 787
Cash & Cash equivalents 663 610
Other assets 105 122
Total assets 4,076 3,880
Equity 1,507 1,502
Total non-current
liabilities
1,483 1,384
thereof financial liabilities 1,007 914
Total current liabilities 1,086 994
thereof trade payables 718 634
Total equity and
liabilities
4,076 3,880
Net working capital 1,491 1,407
Net financial debt 482 422
Shareholders’ equity:
• Decrease to 37% mainly
caused by NWC increase
Financial debt:
• Gearing at 35%
• Gross debt of €1.2bn and
cash position of €0.7bn
result in a net debt position
of €482m
*) Restated due to initial application of IAS19 revised 2011.
Profit & loss Q1 201305
(€m) Q1 2013 Q1 2012*
Sales 1,625 1,945
Gross profit 303 344
Personnel costs -151 -163
Other operating expenses (net) -123 -137
EBITDA 29 44
Depreciation & Amortization -26 -26
EBIT 2 18
Financial result -19 -25
EBT -16 -8
Taxes 1 -4
Net income -16 -12
Minorities 0 1
Net income attributable to KCO shareholders -16 -11
34
*) Restated due to initial application of IAS19 revised 2011.
Segment performance Q1 201305
35
(€m) Europe Americas HQ/Consol. Total
Turnover (Tto)
Q1 2013 930 716 1,646
Q1 2012 1,105 752 1,857
Δ % -15.8 -4.8 -11.4
Sales
Q1 2013 1,017 608 0 1,625
Q1 2012 1,223 722 0 1,945
Δ % -16.9 -15.8 -16.5
EBITDA
Q1 2013 14 21 -6 29
% margin 1.4 3.4 1.8
Q1 2012 19 29 -4 44
%margin 1.5 4.1 2.3
Δ % EBITDA -24.2 -30.2 -34.9
Current shareholder structure05
36
Geographical breakdown of identified
institutional investors
Comments
• Identified institutional investors
account for 40%
• German investors incl. retail
dominate
• Top 10 shareholdings represent
around 23%
• Retail shareholders represent 31%
As of April 2013
Other EU 8%
US 39%
Other World 8%
Switzerland 5%
Germany 27%
France 10%
UK 3%
Appendix05
37
Financial calendar 2013
August 7, 2013 Q2 interim report 2013
November 6, 2013 Q3 interim report 2013
Contact details Investor Relations
Christian Pokropp, Head of Investor Relations & Corporate Communications
Phone: +49 203 307 2050
Fax: +49 203 307 5025
E-mail: christian.pokropp@kloeckner.com
Internet: www.kloeckner.com
Our Symbol
the ears
attentive to customer needs
the eyes
looking forward to new developments
the nose
sniffing out opportunities
to improve performance
the ball
symbolic of our role to fetch
and carry for our customers
the legs
always moving fast to keep up with
the demands of the customers

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Klöckner & Co - Warburg Highlights 2013

  • 1. Klöckner & Co SE A Leading Multi Metal Distributor M. M. Warburg & Co Warburg Highlights 2013CFO Marcus A. Ketter June 7, 2013 Hamburg
  • 2. Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of Klöckner & Co SE with respect to future events. They generally are designated by the words “expect”, “assume”, “presume”, “intend”, “estimate”, “strive for”, “aim for”, “plan”, “will”, “strive”, “outlook” and comparable expressions and generally contain information that relates to expectations or goals for economic conditions, sales proceeds or other yardsticks for the success of the enterprise. Forward-looking statements are based on currently valid plans, estimates and expectations. You therefore should view them with caution. Such statements are subject to risks and factors of uncertainty, most of which are difficult to assess and which generally are outside of the control of Klöckner & Co SE. The relevant factors include the effects of significant strategic and operational initiatives, including the acquisition or disposition of companies. If these or other risks and factors of uncertainty occur or if the assumptions on which the statements are based turn out to be incorrect, the actual results of Klöckner & Co SE can deviate significantly from those that are expressed or implied in these statements. Klöckner & Co SE cannot give any guarantee that the expectations or goals will be attained. Klöckner & Co SE – notwithstanding existing obligations under laws pertaining to capital markets – rejects any responsibility for updating the forward-looking statements through taking into consideration new information or future events or other things. In addition to the key data prepared in accordance with International Financial Reporting Standards, Klöckner & Co SE is presenting non-GAAP key data such as EBITDA, EBIT, Net Working Capital and net financial liabilities that are not a component of the accounting regulations. These key data are to be viewed as supplementary to, but not as a substitute for data prepared in accordance with International Financial Reporting Standards. Non-GAAP key data are not subject to IFRS or any other generally applicable accounting regulations. Other companies may base these concepts upon other definitions. 2
  • 3. Highlights and update on strategy02 Financials Q1 2013 Outlook Appendix 03 04 05 Agenda 3 Overview01
  • 4. Klöckner & Co SE at a glance01 CustomersDistributor / Service CenterProducers Products : Klöckner & Co SE • Largest producer-independent steel and metal distributor and one of the leading steel service center companies in the European and American markets combined • Distribution and service platform with around 240 locations worldwide • Key figures for 2012 Turnover: 7.1 million tons Sales: €7.4 billion EBITDA €139 million (before restructuring) Services: • Machinery and mechanical engineering • Yellow Goods • White Goods • Miscellaneous • Automotive • Commercial/ residential construction • Infrastructure 4
  • 5. Holistic solution from covering procurement, logistics and processing01 Suppliers Sourcing Products and services Logistics / distribution • As a producer- independent distributor, our customers benefit from our diverse national and international procurement options Customers • Procurement of large quantities • Strategic partnerships • Extensive product range • Excellent product and processing quality • Wide-ranging service provision • Local presence • Individual delivery, including 24- hour-service • More than 160,000 customers • Average normal order size approx. €2,000 Klöckner & Co value chain 5
  • 6. Global reach – local presence01 • With around 240 locations in 15 countries we assure local availability for our customers • Austria • Belgium • Brazil • China • England • France • Germany • Ireland • Mexico • Netherlands • Puerto Rico • Scotland • Spain • Switzerland • USA 6 USA: 38% Brazil: 1% China: 1% D*: 25% F/BE: 13% CH: 10% NL: 3% UK: 6% ES: 3% As of December 2012 Europe: 60% * 2012 EEC included, but completely sold in Q1 2013
  • 7. Acquisitions shift exposure towards more promising regions and products01 7 21% Long productsQuality steel/Stainless steel 8% Aluminium 7% Tubes 7% 46% Flat productsOthers 11% Sales by product Sales by markets USAFrance/Belgium 13% Switzerland 10% UK 25% Germany* Spain 3% Netherlands 3% Brazil 1% China <1% 8% 38% Machinery and mechanical engineering26% Miscellaneous 10% Local dealers 12% Household appliances/ Consumer goods 6% 36% Construction industry Automotive industry 10% Sales by industry As of December 2012 * 2012 EEC included, but completely sold in Q1 2013
  • 8. 1% Reliance Ryerson TK Samuel O'Neal Russel Macsteel Metals USA PNA Namasco Others Europe US 2007 2011 5% AMDS TK KCO Salzgitter Tata Others 5% AMDS TK KCO Salzgitter Tata Others 4% Reliance Ryerson KloecknerMetals TK Others • Position in the US significantly improved whereas market share in Europe is expected to remain stable despite heavy restructuring measures Source: Eurometal, Purchasing Magazine, Service Center News Klöckner is together with TK the second largest steel and metal distributor in Europe and number three in the US 01 8
  • 9. Steel demand in EU-27 still well below pre crisis level01 • Continuous recovery in North America since 2009, but again sharp decline in EU-27 • Development in Brazil surprisingly weak since 2010, whereas steel demand in China is further increasing • High overcapacities in Europe and China disturb global balance of supply and demand • Capacity utilization too low to strengthen margins through stronger price discipline Source: WSA 198 183 120 145 153 140 139 2013e201220112010200920082007 142 131 84 111 121 2013e201220112010200920082007 22 24 19 26 25 26 27 201220112010200920082007 2013e 131 135 210 Installed steel production capacity in million t Steel demand in million t +34% -30% -5% ChinaBrazilNAFTAEU-27 133 35 +30% -2% 2012 669 646 2011 624 2010 588 2009 551 2008 447 2007 418 2013e >25% >850 9
  • 10. Highlights and update on strategy02 Financials Q1 2013 Outlook Appendix 03 04 05 Agenda 10 Overview01
  • 11. Strong benefit from restructuring – margins improving, costs down, but volumes are lacking behind 02 11 First quarter overshadowed by macro uncertainty, price declines and severe weather conditions in Europe; nevertheless turnover development in both regions beat markets • Europe and also Americas started slowly into the year with turnover +3.8%qoq, but -11.4%yoy (restructuring impact -3.3%p), sales was only stable qoq due to price decline all over the board, -16.5%yoy • Restructuring showing double success: gross margin improved from 17.7% to 18.6% and cost-cutting of €16m feeding through to bottom line with €12m EBITDA impact • EBITDA with €29m at low end of guidance range of €30-40m despite adverse conditions • Restructuring well on track with 1,600 HC reduced and 50 sites closed • European ABS-program extended until May 2016 with €360m (in Q2 Syndicated Loan extended until May 2016 with 360m • Q2: slight improvement in turnover and EBITDA to €35-45m
  • 12. KCO 6.0 measures having strong impact on the P&L02 * After restructuring costs of €3m.Total GP effect: €41m 44* -4 Price Effect -14 Volume Effect -23 EBITDA Q1 2012 Variable costs 29 EBITDA Q1 2013 10 KCO 6.0 Fix-cost effect 16 KCO 6.0 GP effect KCO 6.0 EBITDA expenses €12m 274280288 -7.5% Q1 13Q4 12*Q3 12*Q2 12* 294 Q1 12* 296 -0.6% -2.2% -2.6% -2.3% in €m KCO 6.0 EBITDA impact OPEX 12 • Turnover was 11.4% down on the prior year • Sales came down 16.5% on the prior year, additionally impacted by falling prices Program measures * incl. expenses due to initial application of IAS19 revised 2011 and excl. restructuring expenses.
  • 13. Annual EBITDA contribution of ~€160m from 2014 onwards through restructuring program KCO 6.0 02 13 Measures • Program extension in France • Realization of further synergy potential in the US • Reduction of overall > 2.000 employees (= 17%) and ~70 sites • Cost reduction by €190m • Total annual EBITDA-impact increased to ~€160m (before: €150m) • Reduction of NWC by €165m • Additional cost of approximately €16m Annual incremental EBITDA-impact 2013 2014 €51m already realized €65m €45m Total annual EBITDA-impact of ~€160m 2011-2012 €18m* * End of April
  • 14. 02 Implementation of restructuring measures KCO 6.0 are progressing according to plan 14 • Sale of Eastern European activities accomplished • Restructuring France: Original measures to be implemented according to plan in Q2, program extension with additional 5 sites resolved and implemented until year end • Optimization program USA: Merger and consolidation of 5 sites in order to increase profitability and utilization of further synergy potentials Comments 240 290 Employees Sites UK ESP EEC GER BR Q3 2011 Q1 2013 UK ESP F EEC 10,212 11,577 GER Holding US BR Q3 2011 Europe -1,042 Americas Q1 2013 -24 -299 Reduced by 1,365, including temps ~1,600 220 End of 2013 F, USA 240 F ~9,600 End of 2013
  • 15. Exposure to peripheral states in Europe is rather limited after restructuring02 15 Reduced by end of the year 6,923 2,000 European Employees1) 44 14 155 European sites2) 2) 1) Basis is September 2011 2) Distribution locations only 36% 9% 5% 20% 5% 23% 2% 95% closed end of 2013 sold (EEC) • 95% of European business is in Core Europe (Sales 2012)
  • 16. Despite market distortion basis for reaching the 6% EBITDA-margin target established through transformation of Group structure and cost cutting 02 16 • Exposure to historically more commoditized European general line distribution cut by half until 2015 BSS 2010 Macsteel 2011 Primary 2007 Canada 2008 USA EEC 2013 Restructuring KCO 6.0 €6.3bn €8.6bn grow and increase margin grow and stabilize high earnings level improve profitable core 3% Canada 13% USA 14% CH 70% European general line distribution 43% USA 1% EM 12% CH 9% BSS 35% European general line distribution KVT 2008 Temtco 2008 Brazil 2011 6.0 – 6.5% 6.0 – 6.5% 4.0 – 5.0% 2007 2015e 6.0% Organic growth Major acquisitions EBITDA- margin target Major divestments / restructuring
  • 17. In the same period share of higher margin business will be increased by 11%pts02 17 Construction 42% Construction 35% Construction 30% Machinery 25% Machinery 25% Machinery 28% Automotive 6% Automotive 12% Automotive 14% Others 27% Others 28% Others 28% 2007 2013e 2015e +6%pts -7%pts -5%pts +5%pts • Exposure to more commoditized construction business down from 42% in 2007 to 30% by 2015 31% 42%
  • 18. Summary Klöckner & Co development and strategy02 Transformation process: • KCO has improved its Group structure significantly since 2007 • Share of higher margin business has been increased substantially • In Europe the exposure to commoditized general line distribution and the suffering peripheral states has been heavily decreased • Focus of further growth is concentrated on the more attractive US market  Even if significant changes and improvements are so far not reflected in results because of extremely weak market conditions, Klöckner & Co will strongly benefit from cost savings when markets recover 18
  • 19. Highlights and update on strategy02 Financials Q1 2013 Outlook Appendix 03 04 05 Agenda 19 Overview01
  • 20. Financials Q1 201303 20 EBITDA Sales Gross profit Turnover * Before restructuring costs €1,945m €1,625m -16.5% Q1 2013Q1 2012 1,857 Tto -11.4% Q1 2012 Q1 2013 1,646 Tto -39.6% Q1 2012 Q1 2013 €29m €344m €303m -11.9% Q1 2013Q1 2012 €47m* €44m
  • 21. 1,587 1,885 1,885 1,739 1,945 1,964 1,847 1,633 1,625 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 +30.5% Turnover and sales03 Sales (€m) & Americas shareTurnover (Tto) & Americas share • Turnover increased less than usual qoq due to economic uncertainty and also restructuring impact (- 3.3%p) • Additionally, both segments were impacted by less working days compared to prior year • Average prices per ton decreased significantly in Q1 qoq (Q1: €987 vs. Q4: €1,030) 21 1,646 1,498 1,763 1,765 1,636 1,857 1,863 1,764 1,585 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 +3.8% -11.4% -16.5% -0.5%22.3 32.4 39.5 39.5 40.5 41.1 42.3 42.7 43.5 18.7 27.6 33.6 34.6 37.1 37.0 37.8 36.3 37.4
  • 22. EBITDA (€m) / EBITDA-margin (%) Gross profit and EBITDA03 Gross profit (€m) / Gross-margin (%) * Before restructuring costs 22 353 337 318 307 344 344* 306 302* 303 22.3 17.9 16.8 17.6 17.7 17.5* 16.6 18.5* 18.6 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 ** As restated for the initial application of IAS19 revised 2011 104 62 37 24* 47* 50* 18 21* 29 6.6 3.3 1.9 1.3 2.4* 2.5* 1.0 1.3* 1.8 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012** Q2 2012** Q3 2012** Q4 2012** Q1 2013 • Despite strongly declining prices, gross profit margin remained stable compared to Q4 and increased substantially vs. last year (+0.9%p) • EBITDA-margin benefitting from strong cost reduction, pulling out substantially higher EBITDA out of roughly stable gross profit
  • 23. 334 571 698 646 752 766 746 677 716 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Key figures by segment03 Turnover (Tto) Sales (€m) EBITDA (€m)* * EBITDA before restructuring; Restructuring costs: Europe: 2011: €10m in Q4; 2012: €3m in Q1, €17m in Q2, €-1m in Q3 and €57m in Q4; Americas: 2012: €1m in Q4 Turnover (Tto) Sales (€m) EBITDA (€m)* EuropeAmericas -15.8% 1,164 1,192 1,067 990 1,105 1,097 1,018 908 930 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 1,290 1,365 1,251 1,137 1,223 1,237 1,149 1,041 1,017 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 -16.9% 297 520 634 602 722 727 698 592 608 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 -4.8% -15.8% 23 ** As restated for the initial application of IAS19 revised 2011 81 50 24 22 22 35 12 16 14 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012** Q2 2012** Q3 2012** Q4 2012** Q1 2013 30 23 15 13 29 22 12 16 21 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012** Q2 2012** Q3 2012** Q4 2012** Q1 2013
  • 24. Cash flow reflects seasonal built up of NWC03 Cash flow reconciliation in Q1 2013 (€m) • NWC seasonally increased • Capex (net) of €6m • Cash interests are less than 1/3 of P&L interest charges due to accretion of debt component for outstanding convertibles and interest costs on pensions Comments 18 -7 -5 -70 29 -41 -6 -35 EBITDA reported Change in NWC Taxes Other CF from operating activities Capex net Free CFInterest 24 Development of net financial debt in Q1 2013 (€m) 2012 CF from operating activities Capex (net) Other* 2013 482 -19-6 -35422 * exchange rate effects, interest
  • 25. • Equity ratio still solid at 37% • Net debt of €482m • Gearing* at 35% • NWC seasonally increased by €84m to €1,491m ** As restated for the initial application of IAS 19 rev. 2011 Strong balance sheet03 * Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010 Comments 25 Assets FY 2012 vs. Q1 2013 610 663 787 923 Liquidity Other current assets Trade receivables Inventories Non-current assets Assets Q1 2013 4,076 105 1,286 1,099 Assets FY 2012** 3,880 122 1,254 1,107 994Current liabilities Non-current liabilities Equity Equity & liabilities Q1 2013 4,076 1,086 1,483 1,507 Equity & liabilities FY 2012** 3,880 1,384 1,502 Equity & liabilities FY 2012 vs. Q1 2013 38.7% 37.0%
  • 26. Statement of changes in equity03 26 * As restated for the initial application of IAS 19 rev. 2011 1.634 IAS 19R 13 Net Income -16 Equity as of December 31, 2012 (as restated for IAS19) 1,502 Revised equity as of December 31, 2012* 1,634 -132 Equity as of March 31, 2013 1,507 F/X and Hedging Reserves 8 Comprehensive income: +€4m • Improvement mainly due to higher interest rates • Net investment hedges • f/x foreign subsidiaries
  • 27. Balanced maturity profile March 201303 27 Maturity profile of committed facilities and drawn amounts (€m) €m Facility Committed Drawn amount Q1 2013* FY 2012* Bilateral Facilities 1) 583 79 98 Other Bonds 9 10 9 ABS 5) 575 281 161 Syndicated Loan 5) 360 162 161 Promissory Note 343 351 348 Total Senior Debt 1,870 883 777 Convertible 2009 2) 98 95 92 Convertible 2010 2) 186 167 164 Total Debt 2,154 1,145 1,033 Cash 4) 663 611 Net Debt 482 422 €m Q1 2013 Adjusted equity 1,359 Net debt 482 Gearing 3) 35% *Including interest 1) Including finance lease 2) Drawn amount excludes equity component 3) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010 4) Incl. cash in assets held for sale 5) European ABS and Syndicated Loan renewed in Q2/2013 6) Incl. Swiss facilities of €230m which are automatically renewed on a yearly basis Left side: committed facilities Right side: drawn amounts 6) 5) 62 62 70 70 136186 98987575 160 213 68 27 8 8 1010 12 31 2016 864 258 372 215 Thereafter 240 473 136 360 360 266 2015 266 186 172 2014 178 18106 2013 373 298 ABS Syndicated loanBilaterals Promissory notes Convertibles
  • 28. Highlights and update on strategy02 Financials Q1 2013 Outlook Appendix 03 04 05 Agenda 28 Overview01
  • 29. Outlook • Q2 2013 • Turnover to be sequentially up in Q2 rather based on seasonality than on economic improvement • EBITDA in Q2 against this background expected to be between €35-45m • FY 2013 • Guidance of stable turnover and sales with EBITDA of €200m looks increasingly unrealistic, since there are currently no signs visible of a still widely anticipated recovery in second half of the year • Restructuring measures in France further extended. EBITDA contribution of overall €65m in 2013 and €45m in 2014 • Optimization program to improve profitability in the US by utilizing synergy potentials after strong growth initiated • Positive free cash flow expected • Further reduction of net debt despite restructuring costs 04 29
  • 30. Highlights and update on strategy02 Financials Q1 2013 Outlook Appendix 03 04 05 Agenda 30 Overview01
  • 31. Quarterly results and FY results 2008-201305 31 (€m) Q1 2013 Q4 2012* Q3 2012* Q2 2012* Q1 2012* Q4 2011 Q3 2011 Q2 2011 Q1 2011 FY 2012* FY 2011 FY 2010 FY 2009 FY 2008 Turnover (Tto) 1,646 1,585 1,764 1,863 1,857 1,636 1,765 1,763 1,498 7,068 6,661 5,314 4,119 5,974 Sales 1,625 1,633 1,847 1,964 1,945 1,739 1,885 1,885 1,587 7,388 7,095 5,198 3,860 6,750 Gross profit 303 298 306 340 344 307 318 337 353 1,288 1,315 1,136 645 1,366 % margin 18.6 18.3 16.6 17.3 17.7 17.6 16.8 17.9 22.3 17.4 18.5 21.9 16.7 20.2 EBITDA rep. 29 -35 18 33 44 14 37 62 104 62 217 238 -68 601 % margin 1.8 -2.1 1.0 1.7 2.3 0.8 1.9 3.3 6.6 0.8 3.1 4.6 -1.8 8.9 EBIT 2 -89 -9 -24 18 -18 8 36 86 -103 111 152 -178 533 Financial result -19 -14 -22 -18 -25 -21 -22 -21 -19 -76 -84 -67 -62 -70 Income before taxes -16 -103 -31 -42 -8 -39 -15 15 66 -179 27 84 -240 463 Income taxes 1 -19 3 3 -4 12 3 -9 -22 -19 -17 -4 54 -79 Net income -16 -123 -29 -39 -12 -27 -12 5 44 -198 10 80 -186 384 Minority interests 0 -1 -1 0 1 -1 -1 0 1 -3 -1 3 3 -14 Net income KlöCo -16 -122 -28 -39 -11 -27 -11 5 43 -195 12 78 -188 398 EPS basic (€) -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 0.65 -1.95 0.14 1.17 -3.61 8.56 EPS diluted (€) -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 0.60 -1.95 0.14 1.17 -3.61 8.11 * As restated due to initial application of IAS19 revised 2011.
  • 32. Strong Growth: 24 acquisitions since the IPO05 32 Acquisitions1) Acquired sales1),2) €141m €567m €108m 2 4 12 2 2005 2006 2007 2008 2009 2010 4 €231m €712m 2011 2 €1.15bn ¹ Date of announcement 2 Sales in the year prior to acquisitions Country Acquired 1) Company Sales (FY)2) GER Mar 2010 Becker Stahl-Service €600m CH Jan 2010 Bläsi €32m 2010 4 acquisitions €712m US Mar 2008 Temtco €226m UK Jan 2008 Multitubes €5m 2008 2 acquisitions €231m CH Sep 2007 Lehner & Tonossi €9m UK Sep 2007 Interpipe €14m US Sep 2007 ScanSteel €7m BG Aug 2007 Metalsnab €36m UK Jun 2007 Westok €26m US May 2007 Premier Steel €23m GER Apr 2007 Zweygart €11m GER Apr 2007 Max Carl €15m GER Apr 2007 Edelstahlservice €17m US Apr 2007 Primary Steel €360m NL Apr 2007 Teuling €14m F Jan 2007 Tournier €35m 2007 12 acquisitions €567m 2006 4 acquisitions €108m USA Dec 2010 Lake Steel €50m USA Sep 2010 Angeles Welding €30m Brazil May 2011 Frefer €150m USA April 2011 Macsteel €1bn 2011 2 acquisitions €1,150m
  • 33. Comments Balance sheet as of December 31, 201205 33 (€m) March 31, 2013 December 31, 2012* Non-current assets 1,099 1,107 Inventories 1,287 1,254 Trade receivables 923 787 Cash & Cash equivalents 663 610 Other assets 105 122 Total assets 4,076 3,880 Equity 1,507 1,502 Total non-current liabilities 1,483 1,384 thereof financial liabilities 1,007 914 Total current liabilities 1,086 994 thereof trade payables 718 634 Total equity and liabilities 4,076 3,880 Net working capital 1,491 1,407 Net financial debt 482 422 Shareholders’ equity: • Decrease to 37% mainly caused by NWC increase Financial debt: • Gearing at 35% • Gross debt of €1.2bn and cash position of €0.7bn result in a net debt position of €482m *) Restated due to initial application of IAS19 revised 2011.
  • 34. Profit & loss Q1 201305 (€m) Q1 2013 Q1 2012* Sales 1,625 1,945 Gross profit 303 344 Personnel costs -151 -163 Other operating expenses (net) -123 -137 EBITDA 29 44 Depreciation & Amortization -26 -26 EBIT 2 18 Financial result -19 -25 EBT -16 -8 Taxes 1 -4 Net income -16 -12 Minorities 0 1 Net income attributable to KCO shareholders -16 -11 34 *) Restated due to initial application of IAS19 revised 2011.
  • 35. Segment performance Q1 201305 35 (€m) Europe Americas HQ/Consol. Total Turnover (Tto) Q1 2013 930 716 1,646 Q1 2012 1,105 752 1,857 Δ % -15.8 -4.8 -11.4 Sales Q1 2013 1,017 608 0 1,625 Q1 2012 1,223 722 0 1,945 Δ % -16.9 -15.8 -16.5 EBITDA Q1 2013 14 21 -6 29 % margin 1.4 3.4 1.8 Q1 2012 19 29 -4 44 %margin 1.5 4.1 2.3 Δ % EBITDA -24.2 -30.2 -34.9
  • 36. Current shareholder structure05 36 Geographical breakdown of identified institutional investors Comments • Identified institutional investors account for 40% • German investors incl. retail dominate • Top 10 shareholdings represent around 23% • Retail shareholders represent 31% As of April 2013 Other EU 8% US 39% Other World 8% Switzerland 5% Germany 27% France 10% UK 3%
  • 37. Appendix05 37 Financial calendar 2013 August 7, 2013 Q2 interim report 2013 November 6, 2013 Q3 interim report 2013 Contact details Investor Relations Christian Pokropp, Head of Investor Relations & Corporate Communications Phone: +49 203 307 2050 Fax: +49 203 307 5025 E-mail: christian.pokropp@kloeckner.com Internet: www.kloeckner.com
  • 38. Our Symbol the ears attentive to customer needs the eyes looking forward to new developments the nose sniffing out opportunities to improve performance the ball symbolic of our role to fetch and carry for our customers the legs always moving fast to keep up with the demands of the customers