August 15, 2007

Dr. Thomas Ludwig Gisbert RühlCEO CFO

Klöckner & Co AG - Q2/H1 2007 Results -Analysts� and Investors�Conference Call

2

Agenda

1. Highlights H1 2007, market and strategyDr. Thomas Ludwig

2. Financials Q2/H1 2007 and outlookGisbert Rühl, CFO

Appendix

3

Highlights H1 2007 and until today

Good results supported by strong market environment in Europe

Business optimisation program �STAR� fully on track

Eight successful acquisitions; pipeline of further targets

Increased free float from 55% to 100%

Further optimization of financing:Successful placement of �600 million Multi-Currency Revolving Credit Facility

Successful issuance of �325 million Convertible Bond

Fully redemption of high yield bond

Sale of 49% stake in Klöckner Information Services (IT)

Ongoing profitable growth

4

Financial highlights Q2/H1 2007

166

195

3,199

3,292

H12007

89

104

1,418

1,605

Q2 2006

+7.7154-2.287EBIT

+6.4183-1.1103EBITDA

+16.72,741+ 16.41,650Sales

+2.73,206+3.61,663Volume (Ttons)

Ä%H1 2006Ä%Q2

2007(�m)

5

Industry trends supporting Klöckner�s strategy

Positive impact on distribution

industry

Globalization and consolidation

Stable global demand growth

Far quicker destocking High capacity utilisation of steel mills

Large costs savings Higher and more flexible capacity utilization Much better supply discipline and higher pricing power creating an

improved balance between supply and demand

On-going consolidation favoring large scale distributors

Higher prices with much shorter downturns support more stable earnings and cash flows for distributors

6

Profitable growth

Grow more thanthe market

Continuous businessoptimization

1 Acquisitions driving market consolidation

Organic growth and expansion into new markets

2

3 STAR Program:- Purchasing- Distribution network

Profitable growth through value-added distribution and services within multi metals to companies in Europe and North America

Profitable growth through value-added distribution and services within multi metals to companies in Europe and North America

7

�108 million4 acquisitions2006

�501 million8 acquisitions H1 2007

�35 millionTournierJan 2007

�14 millionTeulingApril 2007

�360 millionPrimary SteelApril 2007

�17 millionEdelstahlserviceApril 2007

�15 millionMax CarlApril 2007

�11 millionZweygartApril 2007

�23 millionPremier SteelMay 2007

�26 millionWestokJune 2007

�141 million

Sales

2005

Acquired CompanyCountry

2 acquisitions

Acquisitions driving market consolidation1

Acquisitions Next steps

Significant synergies Streamlining operations, processes and sales

force Integration of STAR

Economies of scale Stronger purchasing power

Further acquisitions in core markets at attractive valuations:

Leverage existing structure with 10 to 12 small-and mid-size bolt-on acquisitions in 2007

Large scale acquisitions when appropriate

Include attractive industries, e.g. oil and gas

Benefits

8

Growth above GDP in core markets partly as a result of the outstanding development of the construction and machinery/mechanical engineering industries and steel prices

Eastern European facilities established in Poland, Czech Republic, Romania and Baltic States

Organic growth and expansion into new markets2

Status quo Next steps

Expansion of strong market positions in core markets:

Selective extension of product range Increase value-added services through

investments in new processing capacity Opening of new branches in Eastern

Europe Evaluating of market entry in other

countries like Slovakia, Turkey and Russia

Leveraging existing distribution network

Sustainable profitable growth

Strategy

Benefits

9

Next steps

STAR: Status quo H1 2007 and next steps3

Status quo

Establish European sourcing (STAR Phase II)

Increase sourcing from world-class suppliers with structural cost advantages

Implement unified article codes

Additional frame contracts with main suppliers Extended global sourcing for third party countries Implementation of new organization in Germany

(January 1, 2007) almost completed Implementation of a software supporting stock

management

Purchasing

Improved performance as a result of restructureddistribution network (warehouses):- Q1 2007: Concentration of warehouse structure

in the Iowa region in US- Q1 2007: Restructuring of service center

business in Switzerland Start of roll-out of the optimization tool �Prodacapo�

(activity based costing) in Spain, UK and Eastern European Countries

Continuous improvement of distribution network throughout the Group with support of the optimization-tool �Prodacapo�

- Ongoing roll-out throughout European countries- Restructuring of warehouse structure in Spain

Finalize implementation of SAP throughout the European organization (France, Switzerland) and interface SAP with �Prodacapo�

Distribution

10

Phase II (2008 onwards)

STAR: Phase I finalized in 2008, further potential in phase II3

Phase I (2005 - 2008)

Overall targets:

Central purchasing on country level, especially in Germany

Improvement of distribution network

Improvement of inventory management

2006: ~ �20 million

2007: ~ �40 million

2008: ~ �20 million

~ �80 million

Upside potential

Overall targets:

European Sourcing

Ongoing improvement of distribution network

11

Target Setting 2007 / Achievements in H1 2007

Acquisitions: 10 � 12

Organic growth:Min. 2.5% = �140 million

STAR program:Additional �40 million EBITDA

Expansion:New branches in Eastern Europe:

- Romania- Poland- Czech Republic- Baltic States

Targets 2007 Achievements H1 2007

1

2

3

4

Acquisitions: 8 in 6 months

Organic growth:12% before acquisitions

STAR program:On track

Expansion:New branches in Eastern Europe:

- Opening of new warehouse in the short term

1

2

3

4

12

Agenda

1. Highlights H1 2007, market and strategyDr. Thomas Ludwig

2. Financials Q2/H1 2007 and outlookGisbert Rühl, CFO

Appendix

13

Summary income statement Q2/H1 2007

-126103-7535Income before taxes

--35-33--22-12Income taxes

-1510-94Minority interests

1.28

59

166-63

1956.1

63519.8

3.199

H1 2007

0.41

19

87-52

1036.2

32819.8

1,650

Q22007

-1.63-0.97EPS �

-76-45Net income

+5.6-9.6

60121.9

+3.7-10.9

31622.3

Gross profit% margin

89-14

1047.3

1,418

Q22006

+7.7-

154-28

-2.2 -

EBITFinancial result

+6.4-8.9

1836.7

-1.1-15.0

EBITDA% margin

+16.72,741+16.4Sales

Ä%H1 2006Ä%(�m)

14

Segment performance H1 2007

Comments

Sales for H1 2007 in Europe including about

- �9 million from Aesga (E)- �4 million from Gauss (CH)- �21 million from Tournier (F)- �5 million from Teuling (NL)- �3 million from Edelstahl-

service (D)- �1.5 million together from Max

Carl and Zweygart (D)- �8 million from Westok (UK)

Sales for H1 2007 in North America including about

- �26 million from Action Steel- �54 million from Primary- �2.5 million from Premier

3,199

-

486

2,713

Sales H1 2007

+6.4183195+16.72,741Total

--25-16--HQ / Consol.

-16.43933+8.5448North America

+5.6169178+18.42,292Europe

Ä %EBITDAH1 2006

EBITDAH1 2007Ä %Sales

H1 2006(�m)

15

Balance sheet H1 2007

9961,5313,234

-776

1,243936

1,277714

3,2348574

1,2121,095

768

June30, 2007

933Trade receivables841Inventories579Long-term assets

130Cash & Cash equivalents69Other assets

639- thereof trade payables-Other liabilities

1,009Total short-term liabilities

744Total long-term liabilities799Equity

2,552Total assets

416- thereof financial liabilities

December31, 2006(�m)

2,552Total equity and liabilities

365Net financial debt1,135Net working capital

Comments

Financial debt as of June 30, 2007:� Syndicated loan: �517million� ABS: �339 million� Bank borrowings: �190 million� Increased net financial debt due to

acquisitions and higher NWC

Equity:� Decrease driven by increase of

stake in Swiss Holding and dividend distribution� Further, equity ratio decreased

due to higher assets from 31% to 22%

Net Working Capital:� Increase driven by sales, higher

price levels and acquisitions

16

Statement of cash flow

Comments

101-Proceeds from capital increase

-3-25Others

-10-140Cash flow from operating activities

3415Inflow from disposals of fixed assets/others

-16-366Outflow from investments in fixed assets

18-351Cash flow from investing activities

-186-303Changes in net working capital

61531Changes in financial liabilities

179188Operating CF

145-56Total cash flow

137435Cash flow from financing activities

-6-45Dividends

-19-51Net interest payments

H12006

H12007(�m)

Strong business development reflected in positive cash flow deriving from operational activities and increased NWC requirements

Investing cash flow in H1 2007 mainly impacted by cash outflow due to the various acquisitions and increased stake in our Swiss Holding

17

General financial targets and limits

139%< 150%Gearing (Net financial debt/Equity)

2.4x< 3.0xLeverage (Net financial debt/EBITDA LTM)

6.1%> 6%Underlying EBITDA margin

16.7%> 10% p.aUnderlying sales growth

ActualH1 2007

Generaltarget/limit

Challenging financial targets throughout the cycle

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New holding facility and convertible bond increase scope for further acquisitions

325+325-Convertible bond

1,785+6951,090Total facilities

--170170High yield bond

980+500480Total senior bank facilities

380-100480Bilateral credit agreements

600+600-Syndicated loan

480+40440Total

60-60ABS USA

420+40380ABS Europe

New debtstructure

Change indebt structure

Old debtstructure(�m)

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Convertible bonds � terms and conditions

Size: �325 million

Shares underlying: approx. 4 million

Denomination: �50,000

Maturity date: July 27, 2012 (5 years)

Coupon: 1.50% p.a.

Reference price: �59.81

Conversion price: �80.75 (35% above reference price)

Conversion ratio: 619.1950 shares per bond

Conversion right: September 6, 2007 until July 18, 2012

Early redemption at the option of the issuer: from August 15, 2010 onwards only possible if share price exceeds approx. �105 (= 130% of the conversion price)

Listed on the �Freiverkehr� segment of the Frankfurt Stock Exchange (Open Market)

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Outlook / guidance 2007

At least 15% top line growth mainly driven by acquisitions EBITDA approximately on reported 2006 levelDividend continuity: 30% payout ratio after deduction of extraordinary income

Positive prospects for the steel industryEconomic growth in relevant markets of about 1.8% to 5% in 2007Stable and increasing demand especially in the construction and machinery

industriesPrice development stable or better

Basic assumptions for 2007

Outlook / guidance

Again strong results in 2007

21

Q3 Interim ReportNovember 14:

Analysts� and Investors� MeetingSeptember 19:

Financial calendar 2007 and contact details

Financial calendar 2007

www.kloeckner.deInternet:

claudia.nickolaus@kloeckner.deE-mail:

+49 203 307 5025Fax:

+49 203 307 2050Phone:

Claudia Nickolaus, Head of IR

Contact details Investor Relations

22

Agenda

1. Highlights H1 2007, market and strategyDr. Thomas Ludwig

2. Financials Q2/H1 2007 and outlookGisbert Rühl, CFO

Appendix

23

Appendix

Table of contents

Quarterly results 2007/2006 and FY results 2006/2005

Primary Steel

Acquisitions in Germany

24

812735075105436835Income before taxes

-29-39-13-22-2016-22-12Income taxes

1628698564Minority interests

0.41

19

-52

87

6.2

103

19.8

328

1,650

Q22007

-4.44-0.971.641.160.86Earnings per share in �

362063145765440Net income

-54-64-14-14-24-12-10Financial result

13533764891285578EBIT

4.07.16.07.310.34.95.9% margin

197395791041437092EBITDA

19.921.821.522.322.521.019.8% margin

9871,208285316313294307Gross profit

4,9645,5321,3231,4181,3941,3981,550Sales

FY2005*

FY2006

Q12006

Q22006

Q32006

Q42006

Q12007

(�m)

Quarterly results and FY results 2006/2005

* 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).

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Primary Steel is a perfect fit

Key Facts

Sales 2006Namasco* : �570 million Primary: �360 million

Primary�s leading market position in plate distribution combined with Namasco�s strong position in long products

Additional attractive growth perspective from Primary�s main segments heavy equipment, oil & gas, power generation, transportation and railcar and shipbuilding

Significant improved geographical coverage providing a much stronger platform for further bolt-on acquisitions

Geographical Scope

* Sales of Klöckner & Co US

Primary outlet

Primary Sales office

Namasco Gen. line

Namasco Processing

Oakland

Houston

Missouri

Chicago

Tampa

CharlotteArizona

Arkansas

Iowa

Alabama Georgia

South Carolina

North Carolina

Indiana

Maryland

Maine

Connecticut

Florida

Louisiana

Illinois

Texas

CaliforniaDubuque

Louisville

Indianapolis

AtlantaB´ham

CharlestonDallas

AustinNew Orleans

Jacksonville

Orlando

Pompano

Phoenix

Santa Fee Springs

Tulare

West Memphis

Savannah

Portland

Middletown

New Castle

26

Company Sales

Attractive H1 acquisitions in Germany

Specialized distributor of stainless tubular products and accessories with value-added services supplies from Hungarian site

Expands KSM�s position in specialty stainless products which is key thrust in its diversification strategy

Synergies from integration with recently acquired Dutch Teuling

Local general line distributor Sizeable synergies in purchasing Improvement local market position

Local general line distributor servicing the Stuttgart area Integration with existing KSM location in Stuttgart will improve

market position Synergies in purchasing and from back-office integration

Comments

Max Carl �15.0 million

Edelstahl- �16.7 millionservice

Zweygart �11.3 million

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Our symbol

the earsattentive to customer needs

the eyeslooking forward to new developments

the nosesniffling 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

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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 climateand 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.