RoadshowAugust 28,2007

Gisbert Rühl

CFO

Klöckner & Co A Leading Multi Metal Distributor

2

Agenda

1. Overview, market and strategy

2. Financials and outlook

Appendix

3

Klöckner & Co at a glance

CustomerDistributor

Klöckner & Co highlights

Products:

Services:

Producer

Construction: Structural

Steelwork Building and civil

engineering

Machinery/MechanicalEngineering

Others: Automotive Metal products/

goods, installation Durable goods etc.

Leading producer-independent steel and metal distributor in the European and North American markets combined

Distribution network with approx. 250 warehouses in Europe and North America

About 10,000 employees

Key financials FY 2006- Sales: �5,532 million- EBITDA: �395 million

4

Distributor in the sweet spot

Local customersGlobal suppliers

Suppliers Sourcing Products and services

Logistics/Distribution Customers

Global Sourcing in competitive sizes

Strategic partnerships

Frame contracts

Leverage one supplier against the other

No speculative trading

One-stop-shop with wide product range of high-quality products

Value added processing services

Quality assurance

Efficient inventory management

Local presence

Tailor-made logistics including on-time delivery within 24 hours

> 200,000 customers

No customer with more than 1% of sales

Average order size of �2,000

Wide range of industries and markets

Service more important than price

Purchase volume p.a. of 6 million tons

Diversified set of worldwide ca. 70 suppliers

Examples:

Klöckner & Co�s value chain

5

CDN

B D

F

E

CH ACZ

PL

LT

RO

NL CN

USA

GBIRL

Global reach with broad product and customer diversificationAbout 250 locations (August 2007)

28 Locations USA5 LocationsCDN

48 LocationsE31 LocationsCH76 LocationsF25 LocationsD

11 LocationsEastern Europe7 LocationsNL

1 LocationIRL24 LocationsGB

BU

6

Global reach with broad product and customer diversification

Customer diversification (2006)

Other

GB

Construction

Machinery/Manufacturing

Auto-motive

40%

20%5%

35%23%

21%

15%

10%

9%

6%1%

10%Germany/

Austria

France/Belgium Spain

Nether-lands

Eastern Europe

USA (incl. Primary

17%)

Switzerland

Canada

5%Steel-flat Products

Steel-long Products

Tubes

Special and

Quality Steel

Aluminum

Other Products

28%

31%9%

10%

8%

14%

Sales split by industry Sales split by markets Sales split by product

7

North America (2006)

Structure: 50-60% through distribution, service centersSize in value: ~�100bnCompanies: ~1,300 only independent distributors

Europe (2006)

Structure: 67% through distribution, service centersSize in value: ~�70�90bnCompanies: ~3,000 few mill-tied, most independent

Strong position in Europe; Acquisition of Primary significantly improved position in NA

Source: Purchasing Magazine (May 2007)Source: EuroMetal, company reports, own estimates

ArcelorMittal(Distribution approx. 5%)

ThyssenKrupp

Corus

Other independents

Other mill-tied

distributors

Klöckner & Co

Olympic Steel

Namasco (Klöckner & Co)

Ryerson

Other

Reliance Steel

Samuel, Son & Co

ThyssenKrupp Materials NA

Russel Metals

Worthington Steel

Metals USA

Carpenter Technology

PNA Group

McJunkin

O'Neal Steel

Mac-Steel

AM Castle 72.5%

Namasco with Primary approx. 1.4%

11%

8%

7%

4%~ 45-55%

~ 15-25%

4.5%

2.5%

2.1%

1.8%

0.9%0.9%0.8%

1.4%

1.3%1.2%

1.3%

1.8%

1.4%

1.0%

4.7%

8

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

9

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

10

�36 millionMetalsnabAug 2007

�108 million4 acquisitions2006

�537 million9 acquisitions 2007 ytd.

�35 millionTournierJan 2007

�14 millionTeulingApril 2007

�360 millionPrimary SteelApril 2007

�17 millionEdelstahlservice April 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 small- and mid-size bolt-on acquisitions

Large scale acquisitions when appropriate

Benefits

StrategyFocus on targets at attractive valuations in 3 directions

Expansion in new regions Extension of product portfolio Extension of customer base

11

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

Acquisition of Metalsnab in Bulgaria

Evaluation of market entry in Slovakia, Turkey an Russia

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

12

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

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

13

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

14

Agenda

1. Overview, market and strategy

2. Financials and outlook

Appendix

15

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)

16

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)

17

Balance sheet H1 2007

9961,5313,234

-776

1,243936

1,277714

3,2348574

1,2121,095

768

June 30, 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

December 31, 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

18

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

19

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

20

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)

21

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

22

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

23

Agenda

1. Overview, market and strategy

2. Financials and outlook

Appendix

24

Appendix

Table of contents

Quarterly/FY results 2006/2005

Steel cycle and EBITDA/cash flow relationship

Convertible bonds � terms and conditions

IPO on 28 June 2006 followed by free float increase

25

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).

26

Steel cycle and EBITDA/cash flow relationship

Comments

Klöckner & Co buys and sells products at spot prices generally

Sales increase as a function of the steel price inflation environment

Cost of material are based on an average cost method for inventory and therefore lag the steel price increase

This time lag creates accounting windfall profits (windfall losses in a decreasing steel price environment) inflating (deflating) EBITDA

Assuming stable inventory volume cash flow is impacted by higher NWC needs

The windfall profits (losses) are mirrored by inventory book value increases (decreases)

Theoretical relationship*

Windfallprofits

Windfall losses

(�m)

Margin

Margin

12

3

4

4

5

6 6

*Assuming stable inventory volumes

Steel price SalesCost of material EBITDACash flow

27

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)

28

IPO on 28 June 2006 followed by free float increase

Current shareholder structure Mainly large European

institutional investors Increasing share of US

investors Growing share of retail

investors

April 2007 sell-down

100%

January 2007 sell-down

84.5%

October 2006 sell-down

55%

Post-IPO

35%15.5

% 45%65%

Free float

IPO HighlightsIssue price: �16 per share

Offer Size: �264 million; of which Klöckner received �104 million gross proceeds from the capital increase

Placement: 16.5 million shares (in total 46.5 million shares); thereof: 6.5 million new shares from a capital increase 10 million from the selling shareholder Lindsay Goldberg & Bessemer

(via Multi Metal Investment S.à.r.l.)

LGB/Manage-ment

29

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.