Klöckner & Co - German Corporate Forum 2011

Klöckner & Co SE

A Leading Multi Metal Distributor

JPM German Corporate Forum

October 12, 2011

Gisbert Rühl

CEO/CFO

2

Ein- bis zweizeiliger Folientitel 00 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.

3

Agenda

02 Recent developments, financials and performance Q2 2011

03 Market environment

04 Outlook

05 Appendix

01 Overview

Customers Distributor/ Service Center Producers

Products:

Klöckner & Co SE

Largest producer-independent steel and

metal distributor in Europe and America

combined

Distribution and service platform with

around 290 locations

Key figures for 2010

Sales volumes: 5.3 million tons

Sales: €5.2 billion

EBITDA: €238 million

Services:

4

Ein- bis zweizeiliger Folientitel

Machinery

and

mechanical

engineering

Yellow Goods

White Goods

Miscellaneous

Automotive

Commercial/

residential

construction

Infrastructure

01 Klöckner & Co SE at a glance

5

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 170,000

customers

• Average normal

order size approx.

€2,000

• Service and

availability more

important than price

Holistic solution from covering procurement, logistics and processing

Klöckner & Co value chain

01 Business model

6

Agenda



04 Outlook

05 Appendix

01 Overview

7

02 Highlights Q2

• Challenging quarter due to unexpectedly strong price pressure in all markets leading to an

EBITDA of €62m (3.3% margin), negatively impacted by one offs of €10m (3.8% adjusted

margin)

• Sales volumes increased organically less than typical seasonally due to prebuying effect in

Q1 rolling over and a cautious stance of customers in Q2

• Consolidation of Macsteel and Frefer completed

• Integration of Macsteel and Namasco in the US progressing, synergies higher than initially

expected

• Principle agreement to terminate the earn-out for Macsteel will lead to reduced purchase

price by USD60m and earlier realization of synergy effects

• Capital increase with net proceeds of €517m provides strong backing for

Klöckner & Co 2020

8

02 Steel imports caused pressure in all markets

• Orders to the US were placed during Q1 when the spread

between domestic and import prices justified it and

domestic prices were still rising

• Imports rose by 26% in Q2 to an average of 2.4m

to/month compared to 1.9m to/ month in Q1

• HRC price dropped by USD220 per st since peak

• Fewer imports in the coming months expected due to

lower domestic prices and uncertain economic

environment

US imports of steel products (in kto/ month)

EU imports of steel products (in kto/ month)

US

• Flat steel import licenses increased by 67% in H1

vs. last year to an average of 1.8m to/ month

reaching the peak in May

• HRC dropped by €75 per ton since peak

• Eurometal expects imports into EU to grow by

26% in 2011

Europe

Source: US Census bureau, Eurostat/ Eurometal

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jul

07

Nov

07

Mar

08

July

08

Nov

08

Mar

09

Jul

09

Nov

09

Mar

10

Jul

10

Nov

10

Mar

11

Jul

11

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jul

07

Nov

07

Mar

08

July

08

Nov

08

Mar

09

Jul

09

Nov

09

Mar

10

Jul

10

Nov

10

Mar

11

Jul

11

700

800

900

1,000

1,100

Jan Feb Mar Apr May Jun

Procurement prices in €/ to Inventory value in €/ to Selling prices in €/ to

9

02 Margin squeeze through pricing environment in Q2

H1 comparison of procurement prices, inventory values and selling prices

• Inventory values per ton still increased during the quarter whereas selling prices already leveled off and procurement

prices softened

* Figures not comparable due to adjustments for Frefer & Macsteel, inventory allowances and mix effects

19.4% Gross margin* 11.7% Gross margin*

10

02 Steel cycles get shorter and more pronounced

Source: SBB

HRC price development

-150

-100

-50

0

50

100

150

Q1

05

Q2

05

Q3

05

Q4

05

Q1

06

Q2

06

Q3

06

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Change in U

SD

per

ton

• Price volatility increasing due to switch to monthly contract prices, persisting overcapacity and overall lower

inventories compared to pre-crisis levels

• Raw material cost inflation and change to quarterly or even spot basis

• Customers’ price sensitivity increased even pronouncing price cycles due to opportunistic buying behavior with

negative impact on stockholding distribution

HRC price changes since 2005

11

02

EBITDA

€100m €62m

-38.3%

Q2 2011 Q2 2010

€331m €337m

+1.8%

Q2 2011 Q2 2010

Gross profit

€1,416m

€1,885m +33.1%

Q2 2011 Q2 2010

Sales Sales volumes

1,448 Tto

+21.8%

Q2 2010 Q2 2011

1,763 Tto

Key financials Q2 2011

1,033 966

1,180

1,4481,368 1,318

1,498

1,763

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

934 873

1,049

1,416 1,4011,332

1,587

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

12

02

Sales (€m) Sales volumes (Tto)

Sales volumes and sales

+21.8% +33.1%

+17.7% +18.8%

1,885

Gross profit (€m)/ Gross-margin

0

2

4

6

8

10

12

Ein- bis zweizeiliger Folientitel 02 Gross profit and EBITDA

13

EBITDA (€m)/ EBITDA-margin

22.3% 22.6% 22.5%

23.4%

21.0% 20.6%

22.3%

17.9%

• Margins decreased due to increasing inventory

values while sales prices were declining during Q2

• EBITDA negatively impacted by €10m one-offs,

whereof €15m write downs on inventories

9.5%

1.2%

2.8%

7.1%

4.3% 3.6%

6.6%

3.3% 1 3

Reihe1

6.6%

11

83

29

100

61

48

104

62

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

208 198

236

331

294 275

353 337

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

14

Ein- bis zweizeiliger Folientitel 02 Net income and earnings per share

EPS basic (€)* Net income (€m)

* adjusted for capital increase

-23

12

2

47

15 17

44

5

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

-0.42

0.56

0.02

0.69

0.21 0.25

0.65

0.07

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

-227 -600

-137

Capex Other**

15

Ein- bis zweizeiliger Folientitel 02 Cash flow predominantly impacted by acquisitions and capital increase

Development of net financial debt in Q2 (€m) Cash flow reconciliation in Q2 (€m)

** exchange rate effects, interest

Q1 Q2

-137 -591

62

EBITDA Change in

NWC

Taxes Other

CF from

operating

activities Capex

Free

CF

-20

517

-444

Acquisitions*

-10

Capital

increase

Acquisitions*

Assumed

Debt

-43 -444

-236

* net of cash acquired / capital increase in Frefer

-10

-188

9

CF from

operating

activities

Dividends

-20

784 730

909

1.1621.0841.029

1.164 1.192

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

16

Ein- bis zweizeiliger Folientitel 02 Segment performance Q2 2011

Volumes (Tto) Sales (€m) EBITDA (€m)

** Without acquisitions in 2011

Volumes (Tto) Sales (€m) EBITDA (€m)

* * * * * * * * *

Euro

pe

Am

ericas

249 236271 286 284 289

334

571

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

159 143191

236 232 228297

520

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

10

39

13

5 7

30

23

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

775 730 858

1.180 1.169 1.104

1.290 1.365

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

4

143

25

93

60 45

81

50

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

+2.6% +15.7%

+99.6%/ +14.4%** +120.4%/ +23.5%**

* Consolidation of BSS as of March 1, 2010

17

02 Integration of Macsteel Service Centers USA progressing

Key facts Macsteel • Consolidation as of May 1, 2011

• Sales volume contribution in Q2: 223kTo

• Sales contribution in Q2: €211m

• EBITDA contribution in Q2: €8m (w/o PPA €10m)

• Principle agreement to terminate the earn-out for Macsteel

will lead to reduced purchase price by USD60m and earlier

realization of synergy effects

• Continues to be a positive and great fit

• Synergy potential higher than initially expected

• Fields of synergies are marketing and sales, national key

accounts, products and facilities, purchasing, personnel,

cross utilization of assets and logistics

• Integrated entities will be rebranded to Klöckner

• Management team in place

Klöckner North America Macsteel

Combined

North America

Geographic reach

(North America)

32

locations

30

locations

62

locations

Market position

(North America) #10 #8

#3 in multi

metal, #2 in

carbon steel

SSC business

expansion —

Product mix

improvement

Plate and long

focused Flat products

Improved

sales mix

Plate Processing

Service Center

Plate Processing and

Fabrication Service

Center

Plate Processing Service

Center

Hawaii

Puerto RicoMexico

Macsteel Map

Legend

Headquarters

General Line

Service Center

Flat Rolled

Processing Center

Namasco Map Legend

Plate Processing

Service Center

Plate Processing and

Fabrication Service

Center

Plate Processing Service

Center

Hawaii

Puerto RicoMexico

Macsteel Map

Legend

Headquarters

General Line

Service Center

Flat Rolled

Processing Center

Namasco Map Legend

Combined locations

Update on integration status

18

02 Frefer faced with market in a transition period

Key facts Frefer

Market environment in Q2

• Consolidation as of June 1, 2011

• Sales volume contribution in Q2: 9kTo

• Sales contribution in Q2: €7m

• EBITDA contribution in Q2: €-0.6m (w/o PPA €-0.9m)

• Entry into long steel market in Brazil with preferred supplier

under consideration to broaden product portfolio

Frefer: 14 locations in Brazil

• Difficult situation due to price pressure coming from imports

and overstocking, but mid- to longterm perspectives remain

promising

• Stock ratios steadily decreasing being currently at 3.4 months

of supply pointing to a turnaround

• Longterm prospects of the market being rather incrementally

positive

Source: SECEX, Alice Web, Barclays Capital

Flat steel imports (kt)

0

50

100

150

200

250

300

350

400

450

500

May

08

Jul

08

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul

09

Sep

09

Nov

09

Jan

10

Mar

10

May

10

Jul

10

Sep

10

Nov

10

Jan

11

Mar

11

May

11

Jul

11

Headquarters

Branches

02

19

Q2 2011 (in €m) Strong balance sheet ratios

• Net debt €600m

• Gearing* at 36%

• Equity ratio at 37%

* Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 28, 2010

1,268

1,393

1,142

98 / 23*

1,035

€4,936m

1,849

1,943

1,144

Non-current assets

Inventories

Trade receivables

Liquidity

Other current assets

Equity

Non-current liabilities

Current liabilities

149*

148*

37*

164*

332*

457*

*Thereof MSCUSA and Frefer proportion

Frefer 74

MSCUSA 383

Frefer 2

MSCUSA 21

Impact of MSCUSA & Frefer consolidation (as of June 30, 2011):

Frefer 45

MSCUSA 104

Frefer 18

MSCUSA 130

• Non-current assets include intangible assets (customer

relations, trade name) of €171.2m and goodwill of

€147.5m as well as property, plant and equipment of

€112.5m

• Net working capital contribution of €383.8m

• Transaction volume €680.2m

• D&A for the Group will increase in 2011 by ~€30m (incl.

PPA) and thereafter annual run rate ~€40m

Frefer 20

MSCUSA 312

Frefer 12

MSCUSA 152

Frefer 33

MSCUSA 4

02 Balance sheet as of June 30, 2011

Sales/ NWC as percentage of sales

20

02 NWC / sales remains constantly below 20%

0%

5%

10%

15%

25%

30%

0%

5%

10%

15%

25%

30%

20%

0

1,000

1,500

2,000

2,500

* adjusted for MSCUSA and Frefer

1,3

94

1,3

98

1,5

50

1,6

50

1,5

83

1,4

92

1,6

60

1,9

22

1,7

73

1,3

94

1,0

95

959

934

873

1,0

49

1,4

16

1,4

01

1,3

32

1,5

87

1,8

85

22%

20%

21%

23% 23% 22%

21% 21%

24% 25%

23%

20% 19%

18% 19% 19% 19% 19%

500

Q3

2006

Q4

2006

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

0%

5%

10%

15%

25%

30%

Sales in €m NWC as % of sales (4x quarterly sales)

18%

20%*

500

02

€m Drawn amount

Facility Committed Q2 2011* FY 2010*

Bilateral Facilities1) 580 250 73

Other Bonds 40 41 0

ABS 560 221 88

Syndicated Loan 500 226 226

Promissory Note2) 343 345 147

Total Senior Debt 2,023 1,083 534

Convertible 20073) 325 314 306

Convertible 20093) 98 81 81

Convertible 20103) 186 157 151

Total Debt 2,632 1,635 1,072

Cash 1,035 935

Net Debt 600 137

*Including interest

1) Including finance lease; volume increased in connection with the acquisition

of Macsteel

2) New promissory notes issued in Q2 2011 (€198m)

3) Drawn amount excludes equity component

4) Net debt/Equity attributable to shareholders of Klöckner & Co SE less

goodwill from business combinations subsequent to May 28, 2010

€m Q2

2011

Equity 1,849

Net debt 600

Gearing4) 36%

Maturity profile of committed facilities and drawn

amounts (€m)

Credit limits

Drawn amounts

244

442 517

676 753

51

378

179

398

682

2011 2012 2013 2014 Thereafter

21

Further diversification and improvement of financial position in Q2

22

Agenda



04 Outlook

05 Appendix

01 Overview

23

03 Global economies losing pace after strong recovery

• All major indicators across the globe declined

during the quarter, downside risks have increased

again

• US economy on hold while waiting for the outcome

of the governmental budgetary cuts, factory

production is slowing, growth rates and

expectations being reduced

• Northern Europe slowly recovering further whereas

Southern Europe still struggling given the lack of

export oriented industries and ongoing weakness

in construction

• China adjusting growth to higher single digit

percentage points p.a. in order to avoid

overheating of the economy

• Although government has limited loans in order to

avoid inflation, Brazilian economy is still growing

robustly

PMIs

Expansion

Contraction

30

35

40

45

50

55

60

65

70

Jul

05

Mar

06

Nov

06

Jul

07

Mar

08

Nov

08

Jul

09

Mar

10

Nov

10

Jul

11

North America Europe Brazil China

24

03 Construction

• US construction spending in non residential

expected to remain subdued for the remainder of the

year

• Infrastructure spending dependent on budgetary

cuts, but anyhow so far steel exposure limited

• Residential construction seems to have bottomed

but steel intensity is limited

• Early indicators like USA Architectural Billings Index

point to a recovery in 2012 at the earliest

US

• Construction output is recovering in Germany and

the Baltic Sea area, stabilizing in France and

suffering further in Southern Europe

Europe

Euro

zone c

onstru

ctio

n in

dex

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jan

02

Jul

02

Jan

03

Jul

03

Jan

04

Jul

04

Jan

05

Jul

05

Jan

06

Jul

06

Jan

07

Jul

07

Jan

08

Jul

08

Jan

09

Jul

09

Jan

10

Jul

10

Jan

11

Co

nstr

ucti

on

sp

en

din

gs U

S

US Residential construction per month in mUSD US Non-Residential construction per month in mUSD

80

90

100

110

Eurozone construction spending Index

Construction in Europe and the US

25

03

• Automotive sales in the US are still robust with H1

being 12.8% above last year, but loosing momentum

with June only being 3.0% above last year

• US automotive production that had been affected by

parts shortages from Japan and seasonal model

year change will return to more normal levels

• Machinery production in the US, esp. heavy,

agricultural and mining equipment has been robust

but the growth rate is slowing; industrial plant

manufacturing has been improving

US and EU domestic car sales (in thousand units/quarter)

US

Europe

• European car sales are expected to stay on high level

although wreckage premiums caused base effect

• Machinery in Europe still robust but losing momentum

due to spill-over effects for exports fading out

2,000

2,500

3,000

3,500

4,000

4,500

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

EU sales US sales

Source: Bloomberg

Automotive, machinery and mechanical engineering

26

Agenda



04 Outlook

05 Appendix

01 Overview

27

04 Preparing for slower growth with profitability action plan

2008 2009 2010* 2011e* 2012e*

Volumes

-27 %

Capacities with

Wave 1+2 -15 %

Reaction to

current market

expectations

• We prepare for slower growth

scenario with profitability action plan

to reach 6% target EBITDA-margin

asap

• Measures focus on admin and

overhead and structural changes in

the country organizations

• Divestment of mid triple digit €m

amount

• Net EBITDA contribution of mid

double digit €m, majority already in

2012

• One-off costs of low double digit €m

fully compensated by disposal

proceeds

Organic volume development

28

04 Outlook

• Q3 2011

• Volumes to be seasonally lighter on organic basis

• EBITDA expected seasonally below Q2 level

• Prices to stabilize during Q3 with upside potential after summer depending on supply balance

and further macro economic trends

• Full year 2011 guidance

• >25% volume and sales growth resulting from acquisitions expected with precondition that world

economies not entering into a recession

• Midterm EBITDA margin target of 6% not realistic to be achieved already in 2011

29

Agenda



04 Outlook

05 Appendix

01 Overview

30

05 Appendix

Contact details Investor Relations

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

Phone: +49 203 307 2050

Fax: +49 203 307 5025

E-mail: [email protected]

Internet: www.kloeckner.de

Financial calendar 2011/2012

November 9, 2011 Q3 interim report 2011

March 7, 2012 Annual Financial Statements 2011

May 9, 2012 Q1 interim report 2012

May 25, 2012 Annual General Meeting 2012

August 8, 2012 Q2 interim report 2012

November 7, 2012 Q3 interim report 2012

31

05 Quarterly results and FY results 2006-2011

(€m)

Q2

2011

Q1

2011

Q4

2010

Q3

2010

Q2

2010

Q1

2010

Q4

2009

Q3

2009

Q2

2009

Q1

2009

FY

2010

FY

2009

FY

2008

FY

2007

FY

2006

Volumes (Tto) 1,763 1,498 1,318 1,368 1,448 1,180 966 1,033 1,053 1,068 5,314 4,119 5,974 6,478 6,127

Sales 1,885 1,587 1,332 1,401 1,416 1,049 873 934 959 1,095 5,198 3,860 6,750 6,274 5,532

Gross profit 337 353 275 294 331 236 198 208 161 78 1,136 645 1,366 1,221 1,208

% margin 17.9 22.3 20.6 21.0 23.4 22.5 22.6 22.3 16.8 7.1 21.9 16.7 20.2 19.5 21.8

EBITDA 62 104 48 61 100 29 83 11 -31 -132 238 -68 601 371 395

% margin 3.3 6.6 3.6 4.3 7.1 2.8 9.5 1.2 -3.2 -12.0 4.6 -1.8 8.9 5.9 7.1

EBIT 36 86 24 39 78 11 26 -7 -48 -149 152 -178 533 307 337

Financial result -21 -19 -19 -16 -17 -15 -16 -14 -15 -16 -67 -62 -70 -97 -64

Income before taxes 15 66 5 22 61 -4 9 -21 -63 -165 84 -240 463 210 273

Income taxes -9 -22 12 -7 -14 6 3 -2 16 38 -4 54 -79 -54 -39

Net income 5 44 17 15 47 2 12 -23 -47 -127 80 -186 384 156 235

Minority interests 0 1 1 1 1 1 3 0 1 -2 3 3 -14 23 28

Net income KlöCo 5 43 16 14 46 1 9 -23 -48 -126 77 -188 398 133 206

EPS basic (€) 0.07 0.65 0.25 0.21 0.69 0.02 0.56 -0.42 -1.04 -2.70 1.17 -3.61 8.56 2.87 4.44

EPS diluted (€) 0.07 0.60 0.25 0.21 0.69 0.02 0.56 -0.42 -0.85 -2.43 1.17 -3.61 8.11 2.87 4.44

* 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).

32

05

¹ Date of announcement 2 Sales in the year prior to acquisitions

Acquisitions1) Acquired sales1),2)

€141m

€567m

€108m

2

4

12

2

2005 2006 2007 2008 2009 2010

4

€231m

€712m

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


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



USA Dec 2010 Lake Steel €50m

USA Sep 2010 Angeles Welding €30m

2011

2

€1.15bn Brazil May 2011 Frefer €150m

USA April 2011 Macsteel €1bn

2011 2 acquisitions so far €1,150m

Strong Growth: 24 acquisitions, 2 in 2011

33

05

Sales by industry

BSS shifts exposure of customer industries

Sales by markets Sales by product

• Exposure to construction industry declined by

3.8% as intended

• Automotive rose by 4.2% due to BSS

• Diversification in customer industries will go on

34

05 Balance sheet as of June 30, 2011

(€m) June 30,

2011 Dec. 31,

2010

Non-current assets 1,268 856

Inventories 1,393 899

Trade receivables 1,142 703

Cash & Cash equivalents 1,035 935

Other assets 98 98

Total assets 4,936 3,491

Equity 1,849 1,290

Total non-current liabilities 1,943 1,361

thereof financial liabilities 1,519 1,021

Total current liabilities 1,144 840

thereof trade payables 102 585

Total equity and liabilities 4,936 3,491

Net working capital 1,713 1,017

Net financial debt 600 137

Comments

Shareholders’ equity:

• Stable at 37% despite NWC

increase, benefitting from capital

increase

Financial debt:

• Gearing at 36%

• Net debt position due to acquisitions

increased business

NWC:

• Swing mainly driven by acquisitions

and also due to increased business

35

05 Statement of cash flow Q2

Comments

• NWC changes due to

increased business and

acquisitions

• €444m were cash outflows

for MSCUSA and Frefer

(€m) Q2 2011 Q2 2010

Operating CF 64 99

Changes in net working capital -188 -170

Others -13 14

Cash flow from operating activities -137 -57

Inflow from disposals of fixed assets/others 0 1

Outflow for acquisitions -444 0

Outflow for investments in fixed assets/others -10 -6

Cash flow from investing activities -454 -5

Capital increase 517 0

Changes in financial liabilities 430 196

Dividends -20 0

Net interest payments -21 -16

Repayments of financial liabilities in connection with

business combinations -196 0

Cash flow from financing activities 710 180

Total cash flow 118 118

36

05 Segment performance Q2 2011

(€m) Europe Americas* HQ/

Consol. Total

Volume (Ttons)

Q2 2011 1,192 571 - 1,763

Q2 2010 1,162 286 - 1,448

Δ % 2.6 99.6 21.8

Sales

Q2 2011 1,365 520 - 1,885

Q2 2010 1,180 236 - 1,416

Δ % 15.7 120.4 33.1

EBITDA

Q2 2011 50 23 -11 62

% margin 3.6 4.4 3.3

Q2 2010 93 13 -6 100

% margin 7.9 5.4 7.1

Δ % EBITDA -46.6 81.7 -38.3

Comments

• Excl. MSCUSA, Frefer and Lake

Steel volume increase in Americas

was 14.4% and sales increase was

23.5% yoy

• Without acquisitions total volume

increased by 4.9% and total sales

by 17.0% yoy

* in 2010 North America

37

05

Geographical breakdown of identified institutional investors

Current shareholder structure

Comments

• Identified institutional investors account for 50%

• German investors incl. retail dominate

• Top 10 shareholdings represent around 26%

• Retail shareholders represent 20%

38

05

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

Our symbol

Klöckner & Co - German Corporate Forum 2011

Investor Relations

Transcript of Klöckner & Co - German Corporate Forum 2011