Klckner & Co SE

A Leading Multi Metal Distributor

February 2009

Gisbert RhlCFO

2Agenda

2.

Preliminary results FY 2008

Appendix

3.

Market update

4.

Strategy update

5.

General targets and outlook

1.

Overview

3Klckner & Co at a glanceKlckner & Co

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

z Network with more than 260 distribution locations in Europe and North America

z More than 10,000 employees

GB

24%

21%

14%

7%

5%

9%

20%Germany

France Spain

Nether-lands

Switzerland

Sales split by markets

As of September 2008

Steel-flat Products

Steel-long Products

Special and

Quality Steel

Aluminum

Other Products

31%

31%

10%

9%

6%

13%

Sales split by product

As of September 2008

Other

Machinery/Manufacturing

Auto-

motive*

42%

25%

6%

27%

Sales split by industry

As of December 2007

Construction USA

Tubes

*

Since

deconsolidation

of Namasco Ltd.

4Distributor in the sweet spot

Local customersGlobal suppliers

Suppliers Sourcing Products and servicesLogistics/

Distribution Customers

z Global Sourcing in competitive sizes

z Strategic partnerships

z Frame contractsz Leverage one

supplier against the other

z No speculative trading

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

z Value added processing services

z Quality assurance

z Efficient inventory management

z Local presencez Tailor-made

logistics including on-time delivery within 24 hours

z > 210,000 customers

z No customer with more than 1% of sales

z Average order size of 2,500

z Wide range of industries and markets

z Service more important than price

z Purchase volume p.a. of >6 million tons

z Diversified set of worldwide approx. 70 suppliers

Klckner & Cos value chain

5z Volume related increase and windfall profits result in strong EBITDA but high level of capital employed because of value and volume of stock

How the business model of Klckner & Co works in

High profitability in upturn due to windfall profits and volume increaseStrong cash flow generation in downturn due to working capital release

An upturn with price and volume increases

EBITDAStock turnover

cycle

of ~80 days

EBITDA

Windfall

profits

Volume

z Windfall losses and write-offs but strong cash flow generation to reduce net debt

A downturn with price and volume declines

Net working

capital

Stock turnover

cycle

of ~80 days

Net working

capital

Cash flow

6Longterm

financial development

1

1999 to 2005 unaudited

pro-forma

figures, Cash flow

adjusted

for

M&A-activities; 2

preliminary

results

Sales in

bn1

EBITDA in

million1

Year

FCF in

million1

201 65 211 69 112 80 147 126 86

4.5

5.3

4.2 4.0 3.8

4.85.0

1999 2000 2001 2002 2003 2004 2005

151 220 150 156 140 349 197

Even in heavy

downturn

markets

with

massive price

declines

still positive EBITDA and FCF

5.5

2006

395

6.3

2007

371

6.7

20082600

7Agenda

2.

Preliminary results FY 2008

Appendix

3.

Market update

4.

Strategy update

5.

General targets and outlook

1.

Overview

8Revenue and EBITDA above 2007 but outlook unclear

Preliminary results FY 2008

z Revenues 6% up to 6.7bn

z EBITDA increased by approx. 60% to 595m

z Operating EBITDA increased by approx. 25% to 415m, negatively impacted by year-end inventory write-downs of approx. 60m

z Significant reduction of net debt to 570m, almost halved since Q2 2008

z Q4 with operating EBITDA almost balanced out before write-downs despite strong volume and price decline

z Tonnage decreased by 8% to approx. 6m tons in 2008, mainly driven by shortfall in Q4 and deconsolidation of Namasco Ltd.

z Immediate action program in response to current economic developments extended

9Agenda

2.

Preliminary results FY 2008

Appendix

3.

Market update

4.

Strategy update

5.

General targets and outlook

1.

Overview

10

z Prices could come close to bottoming out after sharp decline in Q4 2008z Significant global production cuts and destocking could leave the market short in Q2

if demand recoversz If demand stays weak falling raw material contract prices could again pressure prices

in H2z Government stimulus programs are expected to support steel demand but with

limited effect in 2009

Ongoing demand risks are dominating steel market outlook

e

EU domestic prices in EUR/t (Source: SBB)

300

400

500

600

700

800

900

1000

Jan 0

6Ma

r 06

May 0

6Ju

l 06

Sep 0

6No

v 06

Jan 0

7Ma

r 07

May 0

6Ju

l 07

Sep 0

7No

v 07

Jan 0

8Ma

r 08

May 0

8Ju

ly 08

Sep 0

8No

v 08

Jan 0

9

HRC Sections

NA domestic prices FOB US Midwest mill in US$/to (Source: SBB)

300

400

500

600

700

800

900

1000

1100

1200

1300

Jan 0

6Ma

r 06

May 0

6Ju

l 06

Sep 0

6No

v 06

Jan 0

7Ma

r 07

May 0

7Ju

l 07

Sep 0

7No

v 07

Jan 0

8Ma

r 08

May 0

8Ju

l 08

Sep 0

8No

v 08

Jan 0

9

WF Beams HRC

11

Government stimulus programs in major markets

USA: $790bn

z Focus on national infrastructure $500bn, i.e. $60bn over 10 years for transportation infrastructure

z 6% of national GDP*

Programs will support steel demand

China: $600bn

z End of 2008-2010z Predominantly infrastructure and social

projects

z 18% of national GDP*

European Union: 200bn

z Support of employment and infrastructure investments

z 1.5% of national GDP*

Germany: 50bn

z 2009/2010z Thereof 14-18bn in infrastructure and

reconstruction of schools and universities

z 2% of national GDP*

*based on GDP 2007Source: Reuters/ Bloomberg January

12

Agenda

2.

Preliminary results FY 2008

Appendix

3.

Market update

4.

Strategy update

5.

General targets and outlook

1.

Overview

13

Three scenarios for 2009

z On the following three slides we provide a framework of how our business can be impacted by volume and price declines in general

z Three different scenarios are shown:

z A: -8% in volumes, 2%-points gross margin contraction

z B: -12% in volumes, 2.5%-points gross margin contraction

z C: -15% in volumes, 3%-points gross margin contraction

z The scenarios do not necessarily reflect management's expectation about future development

z Scenarios are not adjusted for further necessary cost cutting initiatives to be implemented in case of scenario B and C

z Since the visibility for 2009 is limited we cannot provide guidance at this point in time

The scenarios cannot be taken as a guidance

14

Scenario A (-8% volume and 2%p gross margin contraction)*

OperationalEBITDA 2008

Windfalls expected

(20-60 M40)

OperationalEBITDA w/o

windfalls

2% margincontraction

8% volumereduction

8% volumereduction -

variable costs

AcquisitionsLTM

STAR and costreductions

EBITDAscenario A

EBITDA

415 -40 375 -120-110 +20

+50225

Leverage

Net Debt

+10

Net debt YE2008

13% NWCreduction

Total cash floww/o change

NWC

Cash out cartelpenalty

Net debtscenario A

570 -160-120

390

Leverage YE2008

Leveragescenario A

1.41.7

100

* 2008 based

on preliminary

figures, windfall

profits

estimated, all figures

in

million

15

Scenario B (-12% volume and 2.5%p gross margin contraction)*

OperationalEBITDA 2008

Windfalls expected

(20-60 M40)

OperationalEBITDA w/o

windfalls

2.5% margincontraction

12% volumereduction

12% volumereduction -

variable costs

AcquisitionsLTM

STAR and costreductions

EBITDAscenario B

EBITDA

415 -40 375 -150

-160 +30 155

+X**

Leverage

Net Debt

+10

Net debt YE2008

17% NWCreduction

Total cash floww/o change

NWC

Cash out cartelpenalty

Net debtscenario B

570 -220 -80-X**

370

-X**

Leverage YE2008

Leveragescenario B

1.4

16

Scenario C (-15% volume and 3%p gross margin contraction)*

OperationalEBITDA 2008

Windfalls expected

(20-60 M40)

OperationalEBITDA starting

point w/owindfalls

3% margincontraction

1