Klöckner & Co SE · This presentation is not an offer for sale or a solicitation of an offer to...

Morgan Stanley Morgan Stanley –– Basic Materials ConferenceBasic Materials ConferenceFebruary 25 February 25 -- 26, 2010 in New York26, 2010 in New York

KlKlööckner & Co SEckner & Co SE

Gisbert RGisbert Rüühl hl CEO/CFOCEO/CFO

A Leading Multi Metal DistributorA Leading Multi Metal Distributor

2

Disclaimer

This presentation contains forward-looking statements. These statements use words like “believes”, “assumes”, “expects” or similar formulations. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our company and those either expressed or implied by these statements. These factors include, among other things:

Downturns in the business cycle of the industries in which we compete;

Increases in the prices of our raw materials, especially if we are unable to pass these costs along to customers;

Fluctuation in international currency exchange rates as well as changes in the general economic climate

and other factors identified in this presentation.

In view of these uncertainties, we caution you not to place undue reliance on these forward-looking statements. We assume no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

This presentation is not an offer for sale or a solicitation of an offer to purchase any securities of Klöckner & Co SE or any of its affiliates ("Klöckner & Co").

Securities of Klöckner & Co, including, but not limited to, rights, shares and bonds, may not be offered or sold in the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")) unless registered under the Securities Act or pursuant to an exemption from such registration.

3

Agenda

1. Company overview and market

2. Crisis management and strategy update

Appendix

3. Outlook

4

Klöckner & Co at a glance

Klöckner & Co

Leading producer-independent steel and metal distributor in the European and North American markets combined

Network with around 250 distribution locations in Europe and North America

Sales split by markets

As of December 2008

Sales split by product

As of December 2008

Sales split by industry

As of December 2008

Eastern Europe; 1%

USA; 19%

The Netherlands; 6%

Spain; 8%

UK; 9%

Switzerland; 13%

France/Belgium; 21%

Germany/Austria; 23%

Tubes; 10%

Quality steel/stainless

steel; 9%

Aluminum; 6%

Other; 12%

Long products/sectional steel;

32%

Flat products; 31%

Construction; 42%

Industrial machinery and equipment;

24%

On-sellers; 10%

Appliances/durable goods manufacturers; 7%

Automotive; 6%

Other; 11%

5

Distributor in the sweet spot

Local customersGlobal suppliers

Suppliers Sourcing Products and services

Logistics/Distribution Customers

Global Sourcing in competitive sizesStrategic partnershipsFrame contractsLeverage one supplier against the otherNo speculative trading

One-stop-shop with wide product range of high-quality productsValue added processing services Quality assurance

Efficient inventory managementLocal presenceTailor-made logistics including on-time delivery within 24 hours

~185,000 customersNo customer with more than 1% of salesAverage order size of €2,000Wide range of industries and marketsService more important than price

Purchase volume p.a. of >5 million tonsDiversified set of worldwide approx. 70 suppliers

Klöckner & Co’s value chain

6

Highlights 2009

Financing secured: €1.6bn facilities free of performance related covenantsCost cutting plan fully achieved with more than €100m net cost savings in 2009Successful placement of a convertible bond of €98m and a rights issue with net proceeds of €193m Net debt position converted into net cash position due to further release of NWC and rights issueBack on acquisition track to strengthen Klöckner & Co’s position in flat steel: Becker Stahl-Service Group’s SSC with around €600m sales and constantly higher EBITDA-margin than Group’s target Market position in Switzerland strengthened by takeover of Bläsi AG

7

5.500

6.500

7.500

8.500

9.500

10.500

11.500

12.500

13.500

Mar

08

May

08

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Jan

10

Inve

ntor

ies

(Tto

)1,5

2,0

2,5

3,0

3,5

4,0

Mon

ths

of s

hipm

ents

Inventories Months

Steel prices are improving globallyHigher raw material prices will increase the floor for 2010Still comparatively low inventories throughout the supply chain leaves room for technical demand increase

Source: SBB Source: Metals Service Center Institute

Improving price environment

Steel prices recovered slightly

200

300

400

500

600

700

800

900

1.000

1.100

1.200

Mar

06

Jun

06

Sep

06

Dec

07

Mar

07

Jun

07

Sep

07

Dec

07

Mar

08

Jun

08

Sep

08

Dec

08

Mar

09

Jun

09

Sep

09

Dec

09

Ste

el p

rices

(€/t)

in E

urop

e an

d ($

/t) in

the

US

HRC-Europe HRC-US

Medium sections-Europe Beams-US

Steel inventories in the US remain near all time lows

8

Agenda



Appendix

3. Outlook

9

Effective crisis management

Crisis management Managing growth again

Cost cutting

NWC- / debt-reduction

Safeguard financing

Waves 1 and 2

Wave 3

Efficiency program Continuous improvement

Acquisition strategy

Organic growth

Growth capital

( )

10

Cost cutting ahead of plan

€100m net savings target 2009

Personnel50%

Shipping20%

Operatingsupplies/ tools

15%Repair/

maintenance10%

Other5%

Reduction of >1,500 jobs or >15% of total workforce

€35-40m fixed cost savings in 2009, annualized fixed cost savings of €50-60m

11

1.211.32 1.25

1.010.89

0.75 0.74

Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009

-0.14

0.12

0.32

0.570.69

1.07

0.90

Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009

Fast adaptation of NWC- / Net-debt to current situation

Destocking

Net debt Monthly shipment levels / NWC€bn

Stock levels of KCO in million to

-44%

-113%Ja

n 08

Feb 08

Mar 08

Apr 08

May 08

Jun 0

8Ju

l 08

Aug 08

Sep 08

Oct 08

Nov 08

Dec 08

Jan 0

9Feb

09Mar

09Apr

09May

09Ju

n 09

Jul 0

9Aug

09Sep

t 09

Receivable days Payable days

Receivable / payable days

230280330380430480530

Oct08

Nov08

Dec08

Jan09

Feb09

Mar09

Apr09

May09

Jun09

Jul09

Aug09

Sept09

6508501050125014501650

Turnover (Tto) NWC (T€)

12

Financial structure

Bank debt Securitizeddebt

Capital markets debt

AcquisitionsNWC

43%

26%

31%

€325mConvertible Bond 2007

€400mBilateral Facilities

€505mABS

€300mSyndicated

Loan

€98m Convertible Bond 2009

Funds for future growth

€193mRightsIssue

€912mEquity

pre Rights Issue

>€600m predominantly for growth through acquisitions incl. expected outflow for acquisition of Becker Stahl-Service Groupin 2010

€1,105m €616m

Strong financial power for growth through acquisitions

Equity

BSSand Bläsi

13

After managing the crisis back on track with Wave 3

Crisis management Managing growth again

Cost cutting

NWC- / debt-reduction

Safeguard financing

Waves 1 and 2

Wave 3

Efficiency program Continuous improvement

Acquisition strategy

Organic growth

Growth capital

( )

14

Acquisitions1 Acquired sales1,2

¹ As of announcement ² Figures refer to the latest fiscal years, prior to the acquisitions of the companies3 Subject to due diligence and the approval by the antitrust authority

Successful acquisition-led growth re-established

€32mBläsiJan 2010

€108m4 acquisitions2006


€35mTournierJan 2007

€14mTeulingApr 2007

€360mPrimary SteelApr 2007

€17mEdelstahlserviceApr 2007

€15mMax CarlApr 2007

€11mZweygartApr 2007

€23mPremier SteelMay 2007

€26mWestokJun 2007

€36mMetalsnabAug 2007

€7mScanSteelSep 2007

€14mInterpipeSep 2007

€9mLehner & TonossiSep 2007


€5mMultitubesJan 2008

€226mTemtcoMar 2008

~€600mBecker Stahl-Service GroupEarly 20103

Sales (FY)2CompanyAcquired1Country~€632m

€141m

€567m

€108m

2

4

12

2

2005 2006 2007 2008 2009 2010

2

€231m

Acqu

isiti

on s

trate

gy s

uspe

nded

15

Overview Becker Stahl-Service Group (BSS)

OverviewFacility BSS is the largest single site SSC in Europe

• Privately owned business • ~€600 million sales in 2008/2009*• Consistently higher EBITDA margin than Group target• 460 employees• Located in Bönen (Ruhr area)

BSS has a unique market position based on size and flexibility

• Covers all applications up to 4 mm thickness supplying to automotive OEM, Tier 1, white goods and other manufacturing

• Cost leadership with significant scale advantage vs. all EU SSC including mill tied locations

• Only SSC that has flexibility to deliver on short notice almost all specifications

• Modern location with exceptional logistical concept –recently completed expansion “Werk Nord” is most likely the world leading SCC site

• BSS enjoys an excellent market reputation for flexibility, reliability and quality

*preliminary figures business year ending in September subject to due diligence

16

Recently completed expansion most modern site

Total property of 74.900 m2

Covered site area: 14.500 m2

Total invest of ~ €30 millionCut to length and slitting lineFully automatic coil storage and handlingExpansion > 4mm possible

17

#1 independent SSC in GER and #1 single site in EU

3.3%OKS (Stemcor)

5.6%Salzgitter(1)

8.2%ArcelorMittal SSC

11.5% Becker Stahl-Service (BSS)

31.7%Others

3.8%DM-Stahl(3)

4.7%Knauf Interfer(2)

5.4%Tata Corus

5.0%Stahlo / Starcon

6.8%EMW Eisen- und Metallwerke

14.0%ThyssenKrupp SSC

Market share of Top 10 SSC in Germany

(1) Hövelmann & Lueg(2) Max Baumann Stahlservice, W. Patz, Delta Stahl(3) Inkl. Bandstahl-Service HagenSource: Handbuch Stahl 2008 / 09

>100,000FranceJeumontThyssenKrupp SA>100,000AustriaMauthausenAtlas-Blech-Center GmbH>100,000GermanyGeraStarcon>100,000GermanyMudersbachWalter Platz GmbH

>100,000SwitzerlandSennwaldKoenig Feinstahl AG>100,000PolandPolskaVoestalpine, Polska>100,000UKNewportThyssenKrupp SC UK>100,000GermanyRadebeulThyssenKrupp Stahl-SC

>100,000SloveniaNakloMerkur

>100,000GermanyFellbachStahl-Metall-Service GmbH>100,000FranceFossesThyssenKrupp SA>100,000GermanyStuttgartHerzog Coilex>100,000GermanyMannheimThyssenKrupp Stahl-SC>100,000GermanyLeverkusenThyssenKrupp Stahl-SC>100,000GermanyBreyellThyssenKrupp Stahl-SC>100,000GermanyBochumThyssenKrupp Stahl-SC>100,000SpainLayde>100,000FranceCorbellUnitol>100,000NIMoerdijkNamascor>100,000NLMaastrichtCorus Service Centre>100,000GermanyNeussCorus Degels>100,000GermanyGelsenkirchenCorus Gelsenkirchen>250,000Czech Republ.KollnMi-King>250,000SpainVictoriaROS CASARES>250,000GermanyDillenburgStahlo>250,000GermanySchwerteHoevelmann & Lueg GmbH>250,000GermanyNeunkirchenEMW50,000-500,000Italy, EEC7 Sites, split naCLN>500,000NLValkenswaardMCB International BV>500,000AustriaLinzVoestalpine, Linz

>1,000,000GermanyUnna-BönenBecker Stahl-Service Gmbh

Production t/aLocationSiteCompany/Group

18

Constant high profitability even in tough environment

Normalized EBITDA margin

Note: Becker Group closes on 30/09 every year. 2009e based on first nine month plus budget last three months.

Customers Split

Others (White Goods,

Metal Goods, etc.)

Distributors ~60%

~20%

~20%

Automotive

Constant high EBITDA marginEBITDA-margin above Group’s target margin

Source: Eurometal 2008 * Subject to due diligence

EBITDA margin*

FY 05 FY 06 FY 07 FY 08 FY 09

19

BSS will be the core of KCO EU Flats SSC Division

Internal sheets supply to KSM and other distribution workhouses would reduce NWC, expand product portfolios and significantly improve competitivenessBSS know how and processes would be rolled out to existing SSC in UK, F, ES and CHSynergies from capacity adjustments expected

Klöckner & Co SE

ASD(UK)

DKH(CH)

KSM(D)

KDI(F)

CDL(ES)

BSS(D)

Armstrong KFS Targe Cortichapa

Tournier

… … … … …

Flats SSC

20

Internal supply from BSS would increase effectiveness

Current Material Flowin Value Chain

New Material Flowin Value Chain

KC

OC

usto

mer

Mill-SSCIndependentSSC

C1 C2 C3

C4 C6

Warehouse3

Various Steel Mills

C5C5

Warehouse2

Steel Mill

C1 C2 C3

C4 C6C5

Warehouse2

C7 C8

Steel Mill

Warehouse3

Steel MillSteel Mill

Warehouse1Warehouse1

Supp

lier

21

EU-27: Market share steel products* / suppliers 2008 10

0%50

%0% St

ruct

ural

Ste

el/B

eam

s90

%10

%

Mer

chan

t Bar

s90

%10

%

Rei

nfor

cing

pro

duct

s/m

esh

80%

20%

Stai

nles

s60

%40

%

Tube

s50

%50

%

CRC / HRCHot dipped/galvanized sheet 15%

45%

40%

Hea

vy

plat

es 2

6%50

%24

%

Wire

rod

Rai

lway

Mar

ket s

hare

/ sha

reof

sup

ply

Market volume of 153 million t

Stockholding steel and metal distribution Steel mills Steel-Service-Centers

*w/o primary material for tubesSource: Stahlmarkt 11/2009

Becker Stahl-Service expands Groups flat capabilities entering into SSC segment

22

Overall attractive set of synergies

Overall EU purchasing power in flats would significantly increaseCombined normal purchasing volume would increase from about 500 Tto to more than 1,500 Tto

Existing SSC production capacity with equipment could be shifted permanently to BSS supply

Total EU capacity based on 2 shifts per day about 100 TtoDetailed analysis to be carried out – divestments to be considered

Sourcing from BSS with short lead times would allow for reduced inventoriesAssuming a doubling of inventory turns and direct supply would result in significant NWC reduction

23

Perfect fit to our acquisition criteria

*Deal is subject to due diligence and competitive authority approvals and expected to be closed beginning of 2010

Achieve a leading EU-position in sheets in one single step with largest most modern single site Steel Service Center operation (SSC)*Leverage to Group’s flat procurementLeverage to Group’s SSC activities and know howRealize synergies in purchasingCustomer diversification outside constructionStabilize Group earnings volatilityConstant EBITDA-margin above Group target (6%)EPS-accretive from year oneAttractive valuation within target range of 4x-5x EBITDA

16

Achieve profitable growth

Strengthen purchasing power vs. suppliers for core group products

Strengthen country specific market positions

Expand footprint outside construction industry

Focus on geographical core markets in EU, NA and EEC to leverage existing network

Western Europe

NAFTA

Steel ProducerSteel Distributor

Steel DistributorTop 6 -20

Top 5

65%17%

18%Others

Top 5

31%

69%

Steel ProducerOthers

Top 5

39%

61%

OthersOthersTop 6 -20

Top 5

18%

32%50%

Klöckner & Co: Acquisition strategy2

Source: Company data, Eurometal, broker research

Consolidation among steel producers is well ahead of highly fragmented distribution sector M&A strategy

Profitability above group average

Strong synergy potential in purchasing, admin and warehousing with low integration risk

EV/EBITDA multiple between 4x and 6x EBITDA

EPS-accretive from year one

Target selection criteria

Track record of 18 successful acquisitions since IPO shows ability to integrate companies and extract synergies

Rights issu

e roadshow September 2009

24

Bläsi is the leading distributor of technical products and building technology in the Kanton Bern

Overview and acquisition rationale

Bläsi AG is the market leader in the area of technical products, water supply and roofing in the Bern conurbation

2008 sales of €32m, 36 employees; stable result development over the last years above group averageLocal market share of 20% to 25%Broad customer base - Top 10 with sales share of 20% Almost identical suppliers as the D&A group

The Bläsi family offering the business after 75 years of ownership as internal succession came to an end

Current CEO is committed to remain in the business for at least 5 more years after sale

Bläsi is an ideal fit to the D&A technical products division as a significant gap in the local coverage can be filled

D&A does not cover the Bern area with technical products due to competitive situation / prohibitive greenfield costsSignificant synergies in purchasing but also sales expectedAttractive price within target range of 4-5x EV/EBITDA

Excellent located close to the city center and major roads with a total area of 6000 m2

Total covered surface area of 2.400 m2

Additional not used property of 6000 m2

Location Bläsi AG

25

Perfect fit to our acquisition criteria

*Deal is subject to due diligence and competitive authority approvals and expected to be closed beginning of 2010

Strengthens our leading position technical products and building supply in Switzerland

Fits to local product portfolio and therefore synergies in purchasing can be realized

Regional coverage of a white spot by acquiring #1 local player

Stabilize Group earnings volatility

Constant EBITDA-margin above Group average


Attractive valuation within target range of 4x-5x EBITDA

16






Western Europe

NAFTA



Top 5

65%17%

18%Others

Top 5

31%

69%


Top 5

39%

61%

OthersOthersTop 6 -20

Top 5

18%

32%50%

Klöckner & Co: Acquisition strategy2



Profitability above group average

Strong synergy potential in purchasing, admin and warehousing with low integration risk

EV/EBITDA multiple between 4x and 6x EBITDA



Track record of 18 successful acquisitions since IPO shows ability to integrate companies and extract synergies

Rights issu

e roadshow September 2009

26

Agenda



Appendix

3. Outlook

27

We stick to our targets

Roadshow Presentation April

2006

Underlying sales growth

Underlying EBITDA margin

Gearing (Net financial debt/Equity)

> 10% p.a.

> 6%

< 75%

Starting 2010

Starting 2011

Revised

28

Outlook 2009

Initial Q3 statement “EBITDA in H2 maximum break even given seasonality and price environment despite positive EBITDA for Q3 and October” is now backed by more confidence given the positive pricing environmentOverachievement of cost cutting target of €100m net in 2009Stocks and NWC not expected to materially change in Q4Accretive acquisition initiated and expected to be closed beginning of 2010Gradual volume improvement expected in 2010

29

Agenda



Appendix

3. Outlook

30

+49 203 307 2050Phone:

Internet:

E-mail:

Fax:

Dr. Thilo Theilen, Head of Investor Relations & Corporate Communications

[email protected]

www.kloeckner.de

+49 203 307 5025

Contact details Investor Relations

Q3 interim report 2010November 10, 2010:

Q2/H1 interim report 2010August 11, 2010:

Annual General MeetingMay 26, 2010:

Q1 interim report 2010 May 12, 2010:

Annual Statement 2009 March 9, 2010:

Financial calendar 2010

Financial calendar 2010 and contact details

31

Summary income statement Q3/9M 2009

-106.0-105.5-106.7-108.2-92.4

-105.5

-101.7-18.9

-97.3-94.8

-46.61.4

-47.4-23.4

Δ%

-4.16-4.16-197

151

-249

-204-46

-151-5.1

44715.0

2,9883,154

9M 2009

10.5511.28

525-1

-108634

686-51

73513.7

1,19322.3

5,3554,823

9M 2008

-34.61,3481,033Volume (Ttons)

-136.97.56-0.42EPS basic (€)

-139.3378-21Income before taxes-147.4-30-2Income taxes-145.240Minority interests

-0.42

-23

-7-14

111.2

20822.3

934

Q3 2009

-139.47.01EPS diluted (€)

-137.6352Net income*

-62.5-32.8

39122.0

Gross profit% margin

395-18

41323.3

1,773

Q3 2008

-129.7-11.3

EBITFinancial result

-120.6-136.9

EBITDA% margin

-44.2Sales

Δ%(€m)

* Attributable to shareholders of Klöckner & Co SE

32

Organic volume development in North America -27.2%

Comments

Segment performance Q3 2009

23.3-13.225.4% margin

934-159775Q3 2009

1,348-351997Q3 2008

-47.3--58.4-44.3Δ %

1,033-249784Q3 2009

-97.3--80.1-98.9Δ % EBITDA

413951353Q3 2008

1.2-6.40.5% margin

11-3104Q3 2009

1,773-3821,391Q3 2008

EBITDA

Sales-21.5

Europe

-23.4--28.9Δ %

Volume (Ttons)

TotalHQ/Consol.

North America(€m)

33

Balance sheet as of Sept. 30, 2009

-139

702

2,914

427

738618

1,0711,1052,914

176863556573746

Sept. 30, 2009

799Trade receivables1,001Inventories

811Long-term assets

297Cash & Cash equivalents*

176Other assets

392• thereof trade payables826Total short-term liabilities

1,177Total long-term liabilities1,081Equity

3,084Total assets

813• thereof financial liabilities

Dec. 31, 2008**(€m)

3,084Total equity and liabilities

571Net financial debt

1,407Net working capital

* Including restricted cash of €7m; ** restated due to initial application of IFRIC 14

Shareholders’ equity:Increased from 35% to 38%Would be at 50% if cash would be used for debt reduction

Financial debt:Gearing reduced from 53% to -13%

Net Working Capital:Decrease is price- and volume-driven

Comments

34

Statement of cash flow

Operating CF negatively impacted by volume drop, offset by change in NWC Investing CF mainly balanced because of postponement of acquisitions and investment cut

Comments

-36-1Others

32541Cash flow from operating activities

3877Inflow from disposals of fixed assets/others

-296-13Outflow from investments in fixed assets/ others

91-6Cash flow from investing activities

-384703Changes in net working capital

--

22

26195

-161

Equity component of convertible bondRights issueChanges in financial liabilities

452-161Operating CF

84570Total cash flow

-3935Cash flow from financing activities

-22-38

-250

Net interest paymentsDividends

9M 2008

9M 2009(€m)

35

-0.42-0.42

-230

-2

-21

-14

-71.211

22.3208934

1,033

Q32009

-0.85-1.04

-48-116

-63

-15

-48-3.2-31

16.8161959

1,053

Q2 2009

-2.43-2.70-126

-238

-165

-16

-149-12.0-132

7.178

1,0951,068

Q1 2009

8.118.56398-14-79

463

-70

5338.9600

20.21,3666,7505,974

FY2008

4.444.4420628

-39

273

-64

3377.1395

21.81,2085,5326,127

FY2006

2.482.63122

3-55

180

-17

19711.0212

24.0462

1,9221,755

Q22008

-2.871.097.56-2.72EPS basic (€)

1.06

51-2

-24

76

-17

936.6109

20.5340

1,6601,720

Q12008

5,8686,4781,3481,151Volume (Ttons)

81210378-171Income before taxes

-29-54-3029Income taxes

1623-4-15Minority interests

-2.44

-126

-18

-152-9.6-13412.4173

1,394

Q4 2008

-2.877.01EPS diluted (€)

36133352Net income

-54-97-18Financial result

135307395EBIT

4.05.923.3% margin

197371413EBITDA

19.919.522.0% margin

9871,221391Gross profit

4,9646,2741,773Sales

FY2005*

FY2007

Q32008(€m)

Quarterly results and FY results 2005-2009

* Pro-forma consolidated figures for FY 2005, without release of negative goodwill of €139 million and without transaction costs of €39 million, without restructuring expenses of €17 million (incurred Q4) and without activity disposal of €1.9 million (incurred Q4).

36

Significant acquisition potential in fragmented markets






Western Europe

NAFTA



Top 5

Others


Top 5

OthersOthersTop

6 -20

Top 5

Top 5

31%

69%

18%

32%

50%



Profitability above group averageStrong synergy potential in purchasing, admin and warehousing with low integration riskEV/EBITDA multiple between 4x and 6x EBITDA EPS-accretive from year one


17%

18%

65%

61%

39%

37

Leading producer-independent multi-metal distributor

Source: Public information Note: Average exchange rate $/€ 2008: 0.6831 Includes complete Steel Solutions and Services 2 Mill-tied distributors

Largest independent multi-metal distributor

Independence provides:- Sourcing flexibility- Ability to obtain steel at market prices, even in tight

markets- Better ability to react to changes in supply and

demand, as products are sourced from a variety of suppliers

- Mill-tied distributors competing against customers of the mills

2008 European competitive landscapeEurope: ~3,000 market participants

Sales 2008 in €bn

0

4

8

12

16

AM3S TKM Klöckner& Co

RelianceSteel

Ryerson McJunkinRedman

1,2 2

Mill-tied distributors¹

Other independent distributors²

62%38%

Source: Eurometal (2009), public information, based on turnover in tons 1 Top 3 mill-tied distributors ArcelorMittal/ ThyssenKrupp/ Corus² Klöckner & Co is largest independent distributor

2008 North American competitive landscapeNorth America:~1,200 market participants

Mill-tied distributors

Rank Company Mkt. Share

1 Reliance Steel 5.7%

2 Ryerson Inc 3.5%

3 McJunkin Red Man 2.6%

4 Samuel, Son & Co. 2.1% … 10 Klöckner-Namasco 1.2%

11 A.M. Castle & Co 0.9%

…

Top 15 combined 28.2%

Other independent

distributors

Top 15

28.2%

63.7%

8.1%

Source: Metal Center News (Sept. 2009), Purchasing Magazine (April 2009), based on sales

15.8

10.4

3.66.7 6.0

2.9

38

Comparison of independent metal distributorsM

ore

than

thre

eco

untr

ies

Reg

iona

l M

arke

t

Klöckner

IMSBE Group

Reliance

Worthington

Metals USA

Russel Ryerson

Special PortfolioBroad Portfolio

Size of circleindicates sales

volume

39

* Net debt / equity

€1,105m

min €500m

max 150%

Q3

Minimum Equity Covenants Maximum Gearing*

Existing covenants on Syndicated Loan and European ABS

Q3:

Equity ratio currently at 38% Gearing currently at -13%

€0 0%

40

€42m

€230m

€98m

€325m

€14m

€341m

2009 2010 2011 2012 2013 2014

ABS Syndicated loan Convertible 2007¹ Convertible 2009¹ Drawn amount Facility Committed FY 2008 Q3 2009

Bilateral Facilities 417 65 66

ABS 505 213 56

Syndicated Loan 300 298 230

Total Senior Debt 1,222 576 352

Convertible 2007¹ 325 280 288

Convertible 2009¹ 98 0 75

Finance leases 9 12 9

Total Debt 1,654 867 724

Cash 297 863

Net financial position 571 -139

Debt and liquidity overview

Current maturity profile of drawn amountsOverview of cash & indebtedness (€m)

Additional flexibility through renegotiated covenants, which are now free of performance measures

Improved Liquidity and total Net Cash Balance after rights issue in September

1 Drawn amount excludes equity component * Excluding bilateral facilities and finance leases

41

Current shareholder structure

Source: Survey Thomson Financial (as of December 2009)

Identified institutional investors account for 57%

UK based investors dominate (Franklin remains Klöckner’sbiggest investor with 9.41% of the total shares outstanding)

Top 10 shareholdings represent around 27%

Retail shareholders represent 24%

100% free float

CommentsGeographical breakdown of identified institutional investors

Germany 22%

United Kingdom31%

US

19%

9%

Rest of Europe

18%

Switzerland

1%Rest of the World

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Our symbol

the earsattentive to customer needs

the eyeslooking forward to new developments

the nosesniffing out opportunitiesto improve performance

the ballsymbolic of our role to fetchand carry for our customers

the legsalways moving fast to keep up withthe demands of the customers

Klöckner & Co SE · This presentation is not an offer for sale or a solicitation of an offer to...

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Transcript of Klöckner & Co SE · This presentation is not an offer for sale or a solicitation of an offer to...