Klöckner & Co SE

A Leading Multi Metal Distributor

Klöckner & Co SE

CEO

Gisbert Rühl

January 14-15, 2013

Commerzbank German Investment Seminar 2013

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

Overview Q3 and update on strategy 01

Financials Q3 2012

Outlook

Appendix

02

03

04

Agenda

3

Overview Q3 and ytd 2012

• Strong organic turnover growth in the US compensated turnover decline in Europe

resulting in flat Group’s turnover in Q3 yoy; seasonal decline Q3 vs. Q2 (-5.3%)

• European turnover in Q3 down -4.6% yoy better than market (-9%) despite closures and

exiting low margin business, ytd -5.9% vs. market of -9%

• Turnover growth in Q3 in US +9.4% vs. market -1.9% yoy, ytd +6.7% (w/o acquisition) vs.

market of +3.3%

• Sales in Q3 -2.0% yoy at €1,847m, ytd +7.4%

• EBITDA in Q3 at €19m below guidance of €25-35m given further price pressure in

September and missing recovery after summer, ytd €117m before restructuring costs

• Free CF in Q3 slightly positive (+€2m)

• EBITDA contribution of restructuring program €12m in Q3 or €37m since program start

• Scope of restructuring measures with reduction of about 60 sites and more than 1,800

headcounts to be significantly expanded to an annual EBITDA-impact of ~€150m with big

swing in 2013 and fully effective from 2014 on

4

01

Continued price erosion weighed steadily on margins

5

01

Source: Steel Business Briefing, Eurometal, MSCI, Worldsteel, own estimates

HRC/To indexed vs. Gross-margin

Europe in € North America in USD China in Renminbi

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

21.0 20.6 22.3 17.9 16.8 17.6 17.7 17.3 16.6

Europe

• 8% decline of steel distribution‘s turnover expected

in 2012

• Drain on margins in connection with declining prices

due to widening oversupply

US

• 3-4% growth of steel distribution turnover expected

in 2012

• Nevertheless, overcapacities and import pressure

being reflected in the margins

Steel prices:

50

60

70

80

90

100

110

120

130

140

150

160

Against the background of the current market situation today‘s focus is on business

optimization and organic growth

6

01

Business

optimization

Organic

growth

strategy

Curr

ent

focus

External

growth

strategy

• Full implementation of significantly extended restructuring

program

• Reduction of ~60 sites

• Workforce reduction of >1,800

• Increasing share of value added services and higher margin

products around core business

• Increasing share of value added services and higher margin

products around core business

• Realizing synergies especially in purchasing

Total impact of ~€150m annual EBITDA-contribution targeted from 2014 on

7

01

• Workforce reduction of >1,800

• Reduction of ~60 sites

• Disposal of ~€500m sales in low margin business

• 50/50 impact on personnel costs and Opex

• Reducing NWC by €140m

• Incremental one-off costs of ~€60m will be booked by at

least 2/3 in Q4 and financed by release of NWC

• 800 employees reduced

• 20 sites reduced

• ~€25m sales reduced

• €70m NWC release

• €37m EBITDA impact realized since program start;

€12m in Q3

Program measures Achieved by end of September

Annual incremental EBITDA-impact

2013

2014

€50m €37m

already realized

€60m

€40m

Total annual EBITDA-impact of ~€150m

2011-2012

Sites with poor contribution margins even in better market conditions will be closed –

more attractive business handed over to adjacent sites

8

01

• Sites with poor contribution margins before full

allocation of central overheads even in better

market conditions are earmarked for permanent

closures

• Typically, we keep the local sales force for the

more attractive business and supply our

customers from adjacent sites

• Experience shows that between 1/2 and 2/3 of

sales can be maintained

• The expanded restructuring program will result in

a reduction of about 60 sites following this

approach of which 20 have been cut already

• Closure of sites predominantly financed by

release of NWC

Selective approach results in significant profit

improvement with limited loss in market share

Site2

Site1

Site3

Site4

Optimizing and gradual expansion of core business towards higher and more stable

margins

9

01

Optimizing current core business

• Significant reduction of indirect overheads

• Improving productivity in warehousing and reduction of logistics

costs

• Selective closure of sites with negative contribution margins

Main target is to improve efficiency and reduce costs

Selective expansion of value added services

• Mainly targeting existing accounts with known demand

• Low risk investments in new equipment with known technologies

(plate burning, sawing, painting, etc.)

Main target is to increase margins and reduce volatility

Selective expansion of product range

• Expanding product range around core offering by more

specialized products (country specific approach depending on

experience of sales force)

• Leverage existing customer base served by existing sales force

Main target is to increase share of higher margin products at

marginal costs

1 3

2

1

2

3 Products

Serv

ices

Current business scope

Overview Q3 and update on strategy 01

Financials Q3 2012

Outlook

Appendix

02

03

04

Agenda

10

Financials Q3 2012 02

EBITDA

Sales

Gross profit

Turnover

1,765 Tto

-0.1%

Q3 2011 Q3 2012

1,764 Tto

€1,885m €1,847m

-2.0%

Q3 2012 Q3 2011

€37m

-49.0%

Q3 2012 Q3 2011 €19m

€318m €306m

-3.7%

Q3 2012 Q3 2011

11

Financials 9M 2012 02

EBITDA

Sales

Gross profit

Turnover

5,026 Tto

+9.1%

Q1-Q3 2011 Q1-Q3 2012

5,483 Tto €5,357m

€5,755m

+7.4%

Q1-Q3 2012 Q1-Q3 2011

€203m

-42.5%

Q1-Q3 2012 Q1-Q3 2011 €117m*

€1,008m €993m*

-1.4%

Q1-Q3 2012 Q1-Q3 2011

12

* Before restructuring costs Restructuring costs

EBITDA (€m) / EBITDA-margin (%)

Gross profit and EBITDA 02

Gross profit (€m) / Gross-margin (%)

• Gross profit-margin further eroded due to ongoing

price pressure

• EBITDA of €19m not impacted by restructuring costs

which have been postponed to Q4 (France)

13

* Before restructuring costs

61

48

104

62

37

14

45 50*

19

4.3

3.6

6.6

3.3

1.9

0.8

2.3 1.7

1.0

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

294 275

353 337

318 307

344 344*

306 21.0 20.6

22.3 17.9

16.8

17.6

17.7 17.3 16.6

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Segment performance Q3 2012 02

Turnover (Tto) Sales (€m) EBITDA (€m)

Turnover (Tto) Sales (€m) EBITDA (€m)

Euro

pe

Am

ericas

* Restructuring costs of €3m in Q1 and €17m in Q2 and €-1m in Q3

1,084 1,029 1,164 1,192

1,067 990

1,105 1,097 1,018

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

-4.6%

1,169 1,104

1,290 1,365

1,251 1,137

1,223 1,237 1,149

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

-8.1%

284 289 334

571

698 646

752 766 746

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

+6.8%

232 228 297

520

634 602

722 727 698

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

+10.0%

60

45

81

50

24

12 20* 19*

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

14*

5 7

30

23

15 13

29

21

11

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

14

Net income and EPS 02

15

Net income (€m)

0.21 0.25

0.65

0.07

-0.11 -0.27 -0.10

0.03**

-0.27

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

EPS basic (€)*

* Adjusted for capital increase

** Before restructuring expenses and impairments

• Net income trails unsatisfying EBITDA

• €28m D&A include ppa effects of €10m in Q3

• Tax benefit of €2.4m less than usual tax rate

of 30%+ due to non-recognition of deferred

tax assets on operating losses

Comments

15 17

44

5

-12

-27

- 10

3**

-28

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Free cash flow slightly positive in Q3 02

Cash flow reconciliation in Q3 2012

(€m)

16

60,0

EBITDA Change in

NWC Taxes Other

CF from operating activities Capex Free CF

Development of net financial debt in Q3 2012

(€m)

* exchange rate effects, interest

Q2 Capex Other* Q3

- 582

+12 -10

-16

- 596

19

2

-5

-4

12

-10

2

0,0

5,0

10,0

15,0

20,0

25,0

EBITDAChange in

NWC Taxes Other

CF fromoperatingactivities Capex Free CF 0,0

CF from operating activities

Strong balance sheet 02

*Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 28, 2010

**Total capital = net debt plus equity (w/o minorities)

Comments

• Equity ratio of 41%

• Net debt of €596m

• Gearing* at 37%

• Net debt to total capital** at 26%

50%

27.5%

31.1%

23.8%

2.5%

15.1%

Balance sheet total September 30, 2012: €4,354m

40.5%

34.4%

25.1%

Non - current assets

1,198

Inventories

1,356

Trade receivables

1,035

Other current

assets

109

Liquidity

656

Equity

1,763

Non - current

liabilities

1,497

Current

liabilities

1,094

100%

0%

17

Balanced maturity profile despite repayment of Convertible in July 2012 02

18

Facility (€m) Committed Drawn amount

September 30, 2012* December 31, 2011*

Bilateral Facilities1) 596 192 126

Other Bonds 14 14 20

ABS 515 215 175

Syndicated Loan 500 227 226

Promissory Note 343 349 349

Total Senior Debt 1,968 997 896

Convertible 20092) 98 89 86

Convertible 20102) 186 166 157

Total Debt 2,252 1,252 1,458

Cash 656 987

Net Debt 596 471

Maturity profile of committed facilities and drawn

amounts (€m)

Committed facilities

Drawn amounts

304

125

1,035

296

492

37 103

472

266

394

2012 2013 2014 2015 Thereafter *Including interest

1) Including finance lease

2) Drawn amount excludes equity component

Overview Q3 and update on strategy 01

Financials Q3 2012

Outlook

Appendix

02

03

04

Agenda

19

Outlook

• Macro assumptions

• No material changes expected until year-end

• Q4 2012

• Turnover in Q4 expected to be down vs. Q3 due to seasonality and destocking

• EBITDA in Q4 expected to be around Q3’s level before restructuring costs

• Strong positive CF due to NWC release

• FY 2012

• Turnover ~7,100 Tto

• Sales ~€7,450m

• EBITDA before restructuring costs between €130m and €140m

• Net debt <€500m

20

03

Overview Q3 and update on strategy 01

Financials Q3 2012

Outlook

Appendix

02

03

04

Agenda

21

Appendix

22

04

Financial calendar 2013

March 6, 2013 Annual Financial Statements 2012

May 8, 2013 Q1 interim report 2013

May 24, 2013 Annual General Meeting 2013

August 7, 2013 Q2 interim report 2013

November 6, 2013 Q3 interim report 2013

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: thilo.theilen@kloeckner.com

Internet: www.kloeckner.com

Quarterly results and FY results 2007-2012

23

04

(€m) Q3

2012

Q2

2012

Q1

2012

Q4

2011

Q3

2011

Q2

2011

Q1

2011

Q4

2010

Q3

2010

FY

2011

FY

2010

FY

2009

FY

2008

FY

2007

Turnover (Tto) 1,764 1,863 1,857 1,636 1,765 1,763 1,498 1,318 1,368 6,661 5,314 4,119 5,974 6,478

Sales 1,847 1,964 1,945 1,739 1,885 1,885 1,587 1,332 1,401 7,095 5,198 3,860 6,750 6,274

Gross profit 306 340 344 307 318 337 353 275 294 1,315 1,136 645 1,366 1,221

% margin 16.6 17.3 17.7 17.6 16.8 17.9 22.3 20.6 21.0 18.5 21.9 16.7 20.2 19.5

EBITDA 19 33 45 14 37 62 104 48 61 217 238 -68 601 371

% margin 1.0 1.7 2.3 0.8 1.9 3.3 6.6 3.6 4.3 3.1 4.6 -1.8 8.9 5.9

EBIT -9 -23 18 -18 8 36 86 24 39 111 152 -178 533 307

Financial result -21 -18 -24 -21 -22 -21 -19 -19 -16 -84 -67 -62 -70 -97

Income before taxes -30 -41 -6 -39 -15 15 66 5 22 27 84 -240 463 210

Income taxes 2 3 -4 12 3 -9 -22 12 -7 -17 -4 54 -79 -54

Net income -28 -38 -10 -27 -12 5 44 17 15 10 80 -186 384 156

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

Net income KlöCo -27 -38 -10 -27 -11 5 43 16 14 12 78 -188 398 133

EPS basic (€) -0.27 -0.38 -0.10 -0.27 -0.11 0.07 0.65 0.25 0.21 0.14 1.17 -3.61 8.56 2.87

EPS diluted (€) -0.27 -0.38 -0.10 -0.27 -0.11 0.07 0.60 0.25 0.21 0.14 1.17 -3.61 8.11 2.87

Balance sheet as of September 30, 2012

24

04

Comments (€m) September 30, 2012 December 31, 2011

Non-current assets 1,198 1,295

Inventories 1,356 1,362

Trade receivables 1,035 922

Cash & Cash equivalents 656 987

Other assets 109 140

Total assets 4,354 4,706

Equity 1,763 1,843

Total non-current

liabilities 1,497 1,526

thereof financial liabilities 1,095 1,068

Total current liabilities 1,094 1,337

thereof trade payables 725 750

Total equity and

liabilities 4,354 4,706

Net working capital 1,666 1,534

Net financial debt 596 471

Shareholders’ equity:

• Stable at 41%

Financial debt:

• Gearing at 37%

• Gross debt of €1.3bn and

cash position of €0.7bn

result in a net debt position

of €596m

NWC:

• Increase mainly due to

seasonal effects

Profit & loss Q3 2012 vs. Q3 2011

25

04

(€m) Q3 2012 Q3 2011 Δ in %*

Sales 1,847 1,885 -2.0

Gross profit 306 318 -3.7

Personnel costs -154 -148 -4.5

Other operating expenses -140 -146 +4.1

EBITDA 19 37 -49.0

Depreciation, Amortization, Impairments -28 -29 +5.2

EBIT -9 8 -216.8

Financial result -21 -22 +5.0

EBT -30 -15 -103.0

Taxes 2 3 -24.0

Net income -28 -12 -136.5

Minorities -1 -1 +32.2

Net income attributable to KCO shareholders -27 -11 -150.5

* earnings impact

Segment performance Q3 2012

26

04

(€m) Europe Americas HQ/Consol. Total

Turnover (Tto)

Q3 2012 1,018 746 1,764

Q3 2011 1,067 698 1,765

Δ % -4.6 6.8 -0.1

Sales

Q3 2012 1,149 698 1,847

Q3 2011 1,251 634 1,885

Δ % -8.1 10.0 -2.0

EBITDA

Q3 2012 15 11 -7 19

% margin 1.3 1.6 1.0

Q3 2011 24 15 -2 37

% margin 2.0 2.3 1.9

Δ % EBITDA -39.4 -26.0 -49.0

Acquisitions shift exposure towards more promising regions and products

27

04

24% Long productsQuality steel/Stainless steel 8%

Aluminium 7%

Tubes 6%

42% Flat productsOthers 13%

Sales by product

28% USA

France/Belgium 16%

Switzerland 13%

UK 6%

28% Germany/EECSpain 4%

Sales by markets

Netherlands 3%

Brazil 1%

China <1%

Machinery and mechanical 24% engineering

Miscellaneous 11%

Local dealers 10%

Household appliances/Consumer goods 7%

37% Construction industry

Automotive industry 11%

Sales by industry

As of December 2011

Current shareholder structure

28

04

Geographical breakdown of identified

institutional investors

Comments

• Identified institutional investors

account for 46%

• US investors incl. retail dominate

• Top 10 shareholdings represent

around 30%

• Retail shareholders represent 35%

• 100% freefloat

As of September 2012

Other EU 17%

US 33%

Other World 8%

Switzerland 4%

Germany 27%

France 8%

UK 3%

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

29