Klöckner & Co - Roadshow Presentation August 2012

Click here to load reader

Embed Size (px)

description

 

Transcript of Klöckner & Co - Roadshow Presentation August 2012

  • 1. Klckner & Co SE A Leading Multi Metal Distributor Klckner & Co SE CEO/CFO Gisbert Rhl August 2012
  • 2. Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of Klckner & 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 Klckner & 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 Klckner & Co SE can deviate significantly from those that are expressed or implied in these statements. Klckner & Co SE cannot give any guarantee that the expectations or goals will be attained. Klckner & 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, Klckner & 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
  • 3. Overview Q2 and update on restructuring01 Financials Q2 2012 Outlook Appendix 02 03 04 Agenda 3
  • 4. Overview Q2 2012 Turnover increased by 5.7% yoy driven by acquisitions and organic growth in USA and sequentially flat (+0.4% vs Q1) European turnover down -7.9% yoy also due to exiting low margin business whereas Americas up 34.2% yoy (organically up 10.0%) Sales increased by 4.2% yoy and by 0.9% sequentially EBITDA at 50m met guidance of 50-60m before restructuring despite worsening market environment (rep. EBITDA 33m incl. 17m for restructuring expenses mainly in Spain) Achievement of last years EBITDA in current fiscal year mainly due to worsening situation in Europe rather unlikely Scope of restructuring measures significantly expanded, initial measures almost concluded Expansion into US-automotive sector by building a Steel-Service-Center on the site of ThyssenKrupp plant in Alabama External CFO appointed to start latest Jan 1, 2013 4 01
  • 5. Steel demand currently around 25% below peak and not expected to recover shortly Overcapacity persisting also on distribution level until shakeout wave Early anticipation with assumed demand -5% in January created headroom for restructuring ahead of others Restructuring to adopt to current level of activity to avoid losses and position ourselves for a potential recovery Facing a phase with meager profitability, but balance sheets good shape should not be at risk 5 Europe USA Further market growth, albeit currently with reduced pace Successful integration of Macsteel enables us to outgrow the market Nevertheless, margins currently affected by price erosion in carbon also due to high USD and import situation Despite recent slowdown in economic development further market recovery most likely in the US We further outgrow the market by increasing contractual business to create a solid base for future uptick Key market for future growth also with organic measures due to the superior structural attractiveness of the US steel distribution and service center market Restruc- turing Growth Global market assessment and our reaction01
  • 6. Europe/Macsteel Europe: expense reductions US: realizing synergies w/ Macsteel Cuts in administration costs and sales overheads Reduction of low-margin commodity business Expanding higher value-added activities 70m 520 out of 700 already 13m General measures Intensified measures in specific countries01 From Q2 2012 on Step 1 September 2011 Spain + EEC France Additional structural measures in Spain Withdrawal from EEC Realignment of France organization including structural measures Spain: Closure of 11 sites New network structure and logistics concept EEC: Full exit of EEC Closure of ~10 sites Unified sales department in each region Logistics optimization New network structure 20m 600 17m for Spain in Q2 + 15-20m for France in Q3 Focusing on structural changes + 6 *Excluding potential disposal effects of EEC and Spanish properties Step 2 Scope Measures EBITDA impact Employee reduction One-offs* booked in EBITDA
  • 7. 5 10 15 20 25 Despite difficult market environment fundamental values exist01 7 Yield (CB 2007 until 9/8/2011, CB 2014 from 9/9/2011 on) 1,407 1,652 1,720 1,407 1,006 779 702 637 868 1,072 1,090 1,017 1,163 1,713 1,692 1,534 1,656 1,685 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 Q3 2011 Q4 2011 Q1 2012 Q2 2012 NWC Market cap Net debt ~700 current 1,507 1,692 747 571 345 704 1,041 1,187 1,456 965 1,107 1,397 1,573 2,055 929 990 1,087 799 573 471580 582 322 118 -139 904 1,072 690 -150 150 233 137 227 600 571 ~400 Yield in % 500 1,000 1,500 2,000 NWC net debt vs. market capitalization and CB yields (m) ~340 m 245
  • 8. Overview Q2 and update on restructuring01 Financials Q2 2012 Outlook Appendix 02 03 04 Agenda 8
  • 9. Financials Q2 201202 EBITDA Sales Gross profit Turnover 1,763 Tto +5.7% Q2 2011 Q2 2012 1,863 Tto 1,885m 1,964m +4.2% Q2 2012Q2 2011 62m -18.5% Q2 2012Q2 2011 50m* 337m 340m +0.7% Q2 2012Q2 2011 9 *adjusted EBITDA Restructuring costs
  • 10. Financials H1 201202 EBITDA Sales Gross profit Turnover 3,260 Tto +14.1% 3,720 Tto 3,472m 3,909m +12.6% 166m 98m* -41.0% 691m 683m -1.0% 10 H1 2011 H1 2012 H1 2012H1 2011 H1 2012H1 2011 H1 2012H1 2011 *adjusted EBITDA Restructuring costs
  • 11. EBITDA (m) / EBITDA-margin (%) Gross profit and EBITDA02 Gross profit (m) / Gross-margin (%) Gross profit-margin on the level of Q1 adjusted for restructuring costs, despite competitive environment in Europe EBITDA in Q2 decreased qoq also due to restructuring of 17m EBITDA adjusted for restructuring 50m 11 Before restructuring costs 344 17.5 331 294 275 353 337 318 307 344 340 23.4 21.0 20.6 22.3 17.9 16.8 17.6 17.7 17.3 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 50 2.6 100 61 48 104 62 37 14 45 33 7.1 4.3 3.6 6.6 3.3 1.9 0.8 2.3 1.7 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 -4%p
  • 12. 236 232 228 297 520 634 602 722 727 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Segment performance Q2 201202 Turnover (Tto) Sales (m) EBITDA (m) Turnover (Tto) Sales (m) EBITDA (m) EuropeAmericas -9.4% * Without acquisitions in 2011 ** Restructuring costs of 3m in Q1 and 17m in Q2 12 +39.7%/+16.1%* 1,162 1,084 1,029 1,164 1,192 1,067 990 1,105 1,097 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 1,180 1,169 1,104 1,290 1,365 1,251 1,137 1,223 1,237 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 93 60 45 81 50 24 12 20** 36** Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 286 284 289 334 571 698 646 752 766 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 13 5 7 30 23 15 13 29 21 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 -7.9% +34.2%/+10.0%* 19
  • 13. Net income and EPS02 Net income adjusted for restructuring and impairments still slightly positive with 3m Net income includes 17m restructuring already within EBITDA, 30m impairments partly offset by 6m income from adjustment of Frefer put liability and 10m ppa effects Taxes negatively impacted due to non-recognition of tax assets on losses incurred in Q2 Comments 13 EPS basic ()* Net income (m) * adjusted for capital increase ** Before restructuring expenses and impairments 0.69 0.21 0.25 0.65 0.07 -0.11 -0.27 -0.10 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 47 15 17 44 5 -12 -27 -10 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 20