Klöckner & Co SE

A Leading Multi Metal Distributor

Q3 2013 Results

Press Telephone Conference

CEO

Gisbert Rühl

November 6, 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

Highlights and update on strategy 01

Financials Q3/9M 2013

Outlook

Appendix

02

03

04

Agenda

3

Highlights 01

4

* Source: Eurometal; turnover of distribution in Q3 in Europe yoy.

** Source: MSCI; turnover of distribution/SSC in Q3 in the US yoy.

• Markets in Q3 continued to be weak in Europe (-2.1% yoy)* but improved in the US (+4.6% yoy)**

• Klöckner & Co turnover decreased by 8.3% yoy also due to restructuring measures (-4.9%p) and further reduction of

commodity business; sales down by 13.4% yoy

• Gross profit margin improved from 16.6% to 18.5%. Gross profit declined consequently significantly less than sales

by 3.2% to €296m

• EBITDA of €39m (before restructuring) met guidance of €30-40m also without €6m one-off from the release of

pension accruals

• Restructuring program KCO 6.0 far advanced: 61 out of 71 sites closed and HC reduced by more than 2,000 since

9/2011; all measures to be implemented by the end of 2013

• Optimization measures KCO WIN with EBITDA-contribution of €20m in 2014 and additional €30m in 2015 onwards

initiated

• FY-EBITDA target of €140m (before restructuring) and positive FCF confirmed

Restructuring program KCO 6.0 on track and far advanced 01

5

Measures

• Remaining measures in France and the US (optimization after integration of macsteel) to be implemented

by the end of the year

• Total headcount reduction 2,200 = 19% (2,000 already realized)

• Total site closures 71 = 24% (61 already closed or sold)

• Total cost reduction of €190m (€107m realized)

• Total annual EBITDA-impact of ~€160m (€94m realized)

• Reduction of NWC by >€170m largely realized

• Additional cost of approximately €25m mainly offset by NWC release

2013

2014

€51m

already realized

€65m

€45m

Total annual EBITDA-impact of ~€160m

2011-2012

€43m

Turnaround through self-help measures visible despite weak markets 01

6

Restructuring charges Market related GP effect: €-5m

44*

-4

Price

Effect

-14

Volume

Effect

-23

EBITDA

Q3 2012

OPEX 1)

29

EBITDA

Q3 2013

10

KCO 6.0

Cost effect

16

KCO

6.0 GP

effect

KCO 6.0 EBITDA-impact

11

39

36

2

9

19

5 6

1) Incl. one-off gain of €6m (ytd €13m) due to release of pension provisions.

• In Q3 measures contributed an

additional €14m to EBITDA against

prior year, ytd €43m

• Cost cuts achieved trough KCO 6.0

amounted to €19m in Q3, ytd €60m

• Negative volume and price effects of

€5m in Q3 overcompensated by €14m

positive KCO 6.0 effects

• Neagtive volume and price effects ytd

of €69m for the most part

compensated by €43m positive

KCO 6.0 effects

Comments

18

KCO 6.0 EBITDA

contribution

€14m

Market related GP effect: €-69m

44*

-4

Price

Effect

-14

Volume

Effect

-23

EBITDA

9M 2012

OPEX1)

29

EBITDA

9M 2013

10

KCO 6.0

Cost effect

16

KCO

6.0 GP

effect

142039

2

108

110

25

60

17 4

30

39

115

95

KCO 6.0 EBITDA

contribution

€43m

Q3

YTD

Further improvement potential through KCO WIN measures with short term EBITDA-

contribution 01

7

Reaction to still unsatisfying market environment in Europe

• Optimized pricing and sales force management

• Improved customer relationship management

• Further improved sourcing to leverage price potential

• Reduction of logistic costs

• Downsizing of corporate and country holdings

2014

2015

€20m

€30m

Total annual EBITDA-impact of ~€50m

KCO WIN measures support our unchanged long-term strategy 01

8

KCO WIN Growth market is the US where re-shoring of manufacturing will be driven by low

energy and labor costs

Profitable business units in Switzerland and BSS should grow further and stabilize

their high earnings level

Profitability of European general line distribution business has to be improved

short-term

Improvement of product portfolio by reducing commodities further and increasing

sales of higher margin products

Transformation towards higher value-added services also to integrate more into

the supply chains of our customers

Competitive advantage against smaller and mid-size competitors by providing a

brought range of multi metals and services through widespread net work structure

MA

RK

ET

S

SE

RV

ICE

S

PR

OD

UC

TS

US

CH +

BSS

EUROPEAN

GENERAL

LINE

Highlights and update on strategy 01

Financials Q3/9M 2013

Outlook

Appendix

02

03

04

Agenda

9

Financials Q3/9M 2013 02

10

Income statement Jan. 1 –

Sep. 30, 2013

Jan. 1 –

Sep. 30, 2012* Q3 2013 Q3 2012*

Sales € million 4,922 5,755 1,600 1,847

Gross profit € million 904 989 296 306

Gross profit margin % 18.4 17.2 18.5 16.6

EBITDA before restructuring expenses € million 110 115 39 18

Earnings before interest, taxes, depreciation and amortization

(EBITDA) € million 108 95 36

18

Earnings before interest and taxes (EBIT) € million 110 115 39 18

Earnings before taxes (EBT) € million 30 -15 10 -9

Net income before restructuring expenses (2012: before

restructuring expenses and impairments) € million -26 -82 -8

-31

Net income € million -31 -80 -11 -29

Net income attributable to shareholders of Klöckner & Co SE € million -31 -78 -11 -28

Earnings per share (basic) € -0.31 -0.87 -0.11 -0.28

Earnings per share (diluted) € -0.31 -0.87 -0.11 -0.28

Cash flow statement/ Cash flow Jan. 1 –

Sep. 30, 2013

Jan. 1 –

Sep. 30, 2012* Q3 2013 Q3 2012*

Cash flow from operating activities € million -2 -86 44 -

Cash flow from investing activities € million -25 -18 -11 -10

Free cash flow**) € million -27 -104 33 -10

*) Comparative amounts for 2012 restated due to the first-time adoption of IAS 19 rev. 2011. Further information can be taken from note 2 to the financial statements.

**) Free cash flow = Cash flow from operating activities plus cash flow from investing activities.

Gross profit and EBITDA 02

11

EBITDA (€m) / EBITDA-margin (%)

Gross profit (€m) / Gross-margin (%)

• Despite further declining prices, gross profit margin

improved compared to Q3 2012 mainly due to exit of

low margin business

* Before restructuring costs and including in Q2 2013 €7m and in Q3 2013 €6m pension release; without release 2.1% EBITDA-margin in Q2 as well as in Q3.

.

• Strong cost reduction with positive effect on

EBITDA-margin, generating significantly higher

EBITDA yoy

** As restated for the initial application of IAS19 revised 2011.

37

24*

47* 50*

18 21*

29

43*

39*

1.9

1.3*

2.4* 2.5*

1.0 1.3*

1.8

2.5*

2.4*

Q3 2011

Q4 2011

Q1 2012**

Q2 2012**

Q3 2012**

Q4 2012**

Q1 2013

Q2 2013

Q3 2013

318

307

344 344*

306

302* 303

305

296

16.8

17.6 17.7

17.5*

16.6

18.5* 18.6

18.0

18.5

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

+~1%p

Strong balance sheet 02

12

• Equity ratio further solid at 41%

• Net debt of €462m

• Gearing** at 31%

• NWC decreased by €51m to €1,405m qoq

* As restated for the initial application of IAS 19 rev. 2011.

** Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 23, 2013.

Comments

Assets

610 559

787 843

Liquidity

Other current assets

Trade receivables

Inventories

Non-current assets

Sept 30, 2013

3,712

103

1,168

1,039

Dec 31, 2012*

3,880

122

1,254

1,107

634 606

Non-current liabilities

Equity

Sept 30, 2013

3,880 3,712

1,512

1,174

Dec 31, 2012*

1,384

1,502

Trade payables

Other current liabilities 360 420

Equity & liabilities

38.7% 40.7%

Highlights and update on strategy 01

Financials Q3/9M 2013

Outlook

Appendix

02

03

04

Agenda

13

Current trading and outlook 03

14

• Automotive, energy, HVAC, shipbuilding and residential construction were strong this year, while military

equipment, non-res construction, mining, yellow goods were weak

• Picture will not change significantly for the most sectors except non-res construction where volumes should

pick-up slightly

Europe

US

Brazil

China

• Engineering, energy, port equipment and railway continues to be strong, whereas mining equipment and

construction machinery business are expected to remain weak

• China's policy remains to discourage exports of primary steel products; instead, exports of value-added products,

such as steel components, machinery, heavy equipment, marine oil-drilling platforms are being supported. In this

area significant growth is expected

• Appliances, agricultural equipment and non-res construction are expected to stay strong, whereas demand for

industrial machines, sugar mills, electronics and residential construction remain low

• Outlook for construction is mixed: Further recovery in U.K. expected, housing in Germany remains relatively

strong but also non-res is gaining some momentum, NL seems to be through the trough, Switzerland remains

healthy and France weak

• Automotive continues to be weak in France, is improving slightly in Germany and doing well in UK

• After mechanical engineering dropped significantly in the beginning of this year especially in Germany market is

currently gaining momentum into 2014 through pent-up demand and improving exports

Outlook 03

15

• Q4 2013

• Turnover and sales to be seasonally lower but less pronounced because of improving outlook in

the US

• EBITDA guidance of €30 before restructuring driven by further restructuring effects kicking in

• FY 2013

• Turnover and sales expected to come in below prior year`s level mainly due to weaker markets in

H1 and restructuring impact

• EBITDA target at last year`s level of €140m before restructuring costs confirmed

• Free cash flow expected to be again meaningful positive

• Net debt again to be reduced further yoy despite restructuring cash-outs

Highlights and update on strategy 01

Financials Q3/9M 2013

Outlook

Appendix

02

03

04

Agenda

16

Appendix 04

17

Financial calendar 2013/2014

November 6, 2013 Q3 interim report 2013

March 6, 2014 Annual Financial Statements 2013

May 8, 2014 Q1 interim report 2014

May 23, 2014 Annual General Meeting 2014, Düsseldorf

August 7, 2014 Q2 interim report 2014

November 6, 2014 Q3 interim report 2014

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