Klöckner & Co AG

A Leading Multi Metal Distributor

June,

2008

Gisbert RühlCFO

2

Agenda

1.

Overview and market

Appendix

2.

Current market development and expectations for 2008

3.

Profitable growth initiatives

4.

Financials and outlook

3

Klöckner & Co at a glance

CustomerKlöckner & Co

Klöckner & Co highlights

Products:

Services:

Producer

Construction:Structural SteelworkBuilding and civil engineering

Machinery/MechanicalEngineering

Others:Durable goodsMetal productsInstallationetc.

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

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

More than 10,000 employees

Key financials FY 2007-

Sales:

€6,274 million-

EBITDA:

€371 million

4

Distributor in the sweet spot

Local customersGlobal suppliers

Suppliers Sourcing Products and services

Logistics/

Distribution Customers

Global Sourcing in competitive sizesStrategic partnershipsFrame contractsLeverage one supplier against the otherNo speculative trading

One-stop-shop with wide product range of high-quality productsValue added processing services Quality assurance

Efficient inventory managementLocal presenceTailor-made logistics including on-time delivery within 24 hours

> 210,000 customersNo customer with more than 1% of salesAverage order size of €2,000Wide range of industries and marketsService more important than price

Purchase volume p.a. of 6 million tonsDiversified set of worldwide approx. 70 suppliersExamples:

Klöckner & Co’s value chain

5

B D

F

E

CH ACZ

PL

LT

RO

NLCN

USA

GBIRL

More than 260 distribution locations in Europe and NA

USA 30 D/A 23 F/B 75 CH 35 E 54

GB 26 IRL 1 NL 5 Eastern Europe 13

BU

6

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 and growing 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 & CoThyssenKrupp 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 and Temtco

approx. 1.5%

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%

7

Broad industry, product and customer diversification

Other

GB

Construction

Machinery/Manufacturing

Auto-

motive

42%

25%

6%

27% 23%

21%

14%10%

5%

9%1%

13%

Germany/Austria

France/Belgium Spain

Nether-

lands

Eastern Europe

USA

Switzerland

Canada

4%Steel-flat Products

Steel-long Products

Tubes

Special and

Quality

Steel

Aluminum

Other Products

29%

30%10%

10%

7%

14%

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

*As of December

2007 *As of December

2007*As of December

2007

8

Agenda

1.

Overview and market

Appendix

2.

Current market development and expectations for 2008

3.

Profitable growth initiatives

4.

Financials and outlook

9

Ongoing

profitable growth

Highlights Q1 2008 and until today

Excellent results, supported by price increases

Further expansion through the acquisition of Temtco in the US and also Multitubesin the UK

Acquisition of remaining outside shareholdings in Swiss Company Debrunner Koenig Holding AG and as a consequence full integration into the Group

Sale of the automotive-related Canadian Namasco Ltd.

Business optimization program “STAR” fully on track

All preparatory steps to transform Klöckner & Co AG into a European company (SE – Societas Europaea) completed

Ulrich Becker joined the Management Board on April 1, 2008, responsible for Europe and Purchasing

10

Financial highlights Q1 2008

(€m) Q1 2008

Q1 2007 Δ%

Volume (Ttons) 1,720 1,629 5.6

Sales 1,660 1,550 7.1

EBITDA 109 92 18.3

EBIT 93 78 18.6

11

Steel market development in Q2 2008

Strong price increases despite a softer economic growth due to a favorable supply and demand relation especially in the US but also in Europe

Structural change due to the fact that steel prices are now driven primarily by raw material costsHigher discipline on the producer side due to consolidationHigh capacity utilizationLow stock levels and low import volumes

Further price increases already announced for the upcoming months

Strong steel market development expected to continue in Q3

12

80%

90%

100%

110%

120%

130%

140%

Jan06

Feb06

Mar06

Apr06

May06

Jun06

Jul06

Aug06

Sep06

Oct06

Nov06

Dec06

Jan07

Feb07

Mar07

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Oct07

Nov07

Dec07

Jan08

Feb08

Mar08

Apr08

May08

Flat Products / HRC / N.Europe domestic Flat Products / CRC / N.Europe domestic Ex-Works /t

Flat Products / HDG / N.Europe domestic Ex-Works /t

Flat

prices

Northern Europe (SBB, Jan 2007 = 100)

13

90%

110%

130%

150%

170%

190%

210%

Jan06

Feb06

Mar06

Apr06

May06

Jun06

Jul06

Aug06

Sep06

Oct06

Nov06

Dec06

Jan07

Feb07

Mar07

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Oct07

Nov07

Dec07

Jan08

Feb08

Mar08

Apr08

May08

Flat Products / HRC / N.America domestic FOB US Midwest mill $/tFlat Products / CRC / N.America domestic FOB US Midwest mill $/tFlat Products / HDG / N.America domestic FOB US Midwest mill $/tFlat Products / Plate (A36) / N.America domestic FOB US Midwest mill $/t

Flat

products

prices

North America (SBB, Jan 2007 = 100)

14

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

Jan06

Feb06

Mar06

Apr06

May06

Jun06

Jul06

Aug06

Sep06

Oct06

Nov06

Dec06

Jan07

Feb07

Mar07

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Oct07

Nov07

Dec07

Jan08

Feb08

Mar08

Apr08

May08

Long Products / Medium sections / Europe domestic delivered /t Long Products / Merchant Bar / Europe domestic delivered /tLong Products / Rebar / Europe domestic delivered /t

Long products

prices

Europe (SBB, Jan 2007 = 100)

15

Long products

prices

North America (SBB, Jan 2007 = 100)

80%

90%

100%

110%

120%

130%

140%

150%

160%

170%

180%

Jan06

Feb06

Mar06

Apr06

May06

Jun06

Jul06

Aug06

Sep06

Oct06

Nov06

Dec06

Jan07

Feb07

Mar07

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Oct07

Nov07

Dec07

Jan08

Feb08

Mar08

Apr08

May08

Long Products / Rebar / N.America domestic FOB US Midwest mill $/tLong Products / Merchant Bar / N.America domestic FOB US Midwest mill $/tLong Products / WF beams (medium) / N.America domestic FOB US Midwest mill $/t

16

Agenda

1.

Overview and market

Appendix

2.

Current market development and expectations for 2008

3.

Profitable growth initiatives

4.

Financials and outlook

17

Profitable growth

Grow more thanthe market

Continuous businessoptimization

1 Acquisitions

driving market consolidation andOrganic growth

and

expansion

into new markets

2 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

18

Country Acquired Company Sales (FY)

Mar 2008 Temtco €226 millionJan 2008 Multitubes €5 million

2008 Ytd 2 acquisitions €231 millionSep 2007 Lehner

& Tonossi €9 millionSep 2007 Interpipe €14 millionSep 2007 ScanSteel €7 millionAug 2007 Metalsnab €36 millionJun

2007 Westok €26 millionMay 2007 Premier Steel €23 millionApr

2007 Zweygart €11 millionApr 2007 Max Carl €15 millionApr 2007 Edelstahlservice €17 millionApr 2007 Primary Steel €360 millionApr 2007 Teuling €14 millionJan 2007 Tournier €35 million

2007 12 acquisitions €567 million2006 4 acquisitions €108 million

12

42

2005 2006 2007

Acquisitions Sales

€141 million€108 million

€567 million

Continued expansion through acquisitions1

19

Acquisition of Temtco, a leading plate distributor

40% of the 2007-level of acquisition-related sales already achieved

Tacoma, WA

Chicago, IL

Apache Junction, AZ

Louisville, MS

York, PA

High quality product portfolio: High strength quenched & tempered steel, wear-resistant steels and security steels

Sales 2007: $310 million (€226 million) with 180 employees

More than 60% of sales are processed products

Excellent customer base in application sectors such as energy, machinery and mechanical engineering, mining and transport

CommentsNorth America/USA –

03/08: Temtco

20

Investment highlights

Complementary sales coverage combined with an additional productrange offers synergy potential

Namasco’s and Primary’s market coverage hugely expandedEnlarged purchasing power helps to counterweight the strong supplier consolidation (top 3 account for more than 80% of market)Additional (typical) synergies in admin, finance, IT, etc.

The acquisition of Temtco supports significantly the leading position of Primary and Namasco in the plate distribution segment

Securing continuing specialty plate supply through Temtco’s supplier relationsLeveraging Temtco’s customer base for sale of Namasco/Primary’s commodity plate and vice versaBroad geographic coverage with five locations

Leading position in

plate segment

Synergies

21

Strong acquisition criteriaFurther acquisitions in core markets and Eastern Europe:

●

Leverage existing structure in core markets with small-

and mid-size bolt-on acquisitions

●

Large scale acquisitions when appropriate●

Acquisitions in Eastern Europe to increase footprint

Focus on targets in 3 directions:●

Expansion of geographic reach●

Extension of customer base●

Extension of product portfolio

Focus on targets at attractive valuations:●

EV/EBITDA multiple between 4x and 6x

Focus on targets with significant synergy and scale effects:

●

Stronger purchasing power ●

Streamlining operations and processes, integrating IT●

Integration of STAR

Accretive growth

1

22

Organic growth and expansion into new markets

Closing of acquisition of Metalsnab in Bulgaria in January 2008Additional acquisitions and opening of new branches Evaluation of market entry in other countries (e.g. Turkey, Russia)

Concentrate product range and expand higher margin productsIncrease value-added services

Further expansion in Eastern Europe and into new markets

Expansion of strong market position in core markets

1

23

STAR: Status Quo

Extension of European sourcing Improvement of the European stock management

Ongoing SAP roll-out across European countriesImproving performance of distribution network

STAR program fully on track

Purchasing

Distribution network

2

24

Phase II (2008 onwards)

STAR: Phase I finalized in 2008, further potential in phase II2

Phase I (2005 -

2008)

Overall targets:Central purchasing on country level, especially in GermanyImprovement of distribution networkImprovement of inventory management

2006:

~ €20 million2007:

~ €40 million2008:

~ €20 million~ €80 million

Upside potential

Overall targets:European sourcingOngoing improvement of distribution network

Upside potential

2008

~ €10 million2009:

~ €30 million2010:

~ €20 million~ €60 million

25

Agenda

1.

Overview and market

Appendix

2.

Current market development and expectations for 2008

3.

Profitable growth initiatives

4.

Financials and outlook

26

Summary income statement Q1 2008

(€m) Q12008

Q12007 Δ%

Volume

(Ttons) 1,720 1,629 5.6Sales 1,660 1,550 7.1Gross profit% margin

34020.5

30719.8

10.83.5

EBITDA% margin

1096.6

925.9

18.311.9

EBITFinancial result

93-17

78-10

18.663.7

Income before

taxes 76 68 11.7Income taxes -24 -22 10.3

Minority interests 2 6 -74.9

Net income* 51 40 26.3EPS basic

(€) 1.09 0.86 26.7EPS

diluted (€) 1.06 0.86 23.3* Attributable to shareholders of Klöckner & Co AG

27

Again strong underlying EBITDA

Underlying EBITDA Q1 2008

(€m) Q12008

EBITDA as reported●

One-offs109,0

0,2

Operating EBITDA●

Windfall effects●

Exchange rate effects●

Special expense effects

109,2-8,04,1

-6,5

Underlying EBITDA 98,8

●

Acquisitions (LTM*) -13,5

Underlying EBITDA excluding Acquisitions 85,3* LTM: Last twelve months

28

Includes sales of M€40 for Q1 2008* in Europe andsales of M€101.4 for Q1 2008* in North America

Segment performance Q1 2008

Comments(€m) Europe North America

HQ/Consol. Total

Volume

(Ttons)Q1 2008 1,211 509 - 1,720Q1 2007 1,230 399 - 1,629Δ

% -1.5 27.5 - 5.6Sales

Q1 2008 1,358 301 - 1,660Q1 2007 1,339 211 - 1,550Δ

% 1.5 42.7 - 7.1EBITDA

Q1 2008 84 26 -1 109% margin 6.2 8.8 - 6.6Q1 2007 85 14 -7 92% margin 6.4 6.6 - 5.9Δ

% EBITDA -2.0 88.6 - 18.3* Sales of acquired companies for the first

twelve months of their consolidation

29

Balance sheet as of March 31, 2008

(€m) March 31, 2008

December 31, 2007

Long-term assets 753 735Inventories 1,020 956Trade receivables 1,083 930Cash & Cash equivalents 108 154Other assets 188 191Total assets 3,152 2,966Equity 771 845Total long-term liabilities 1,255 1,152

-

thereof financial liabilities 914 813Total short-term liabilities 1,126 969

-

thereof trade payables 740 610Total equity and liabilities 3,152 2,966Net working capital* 1,404 1,323Net financial debt* 904 746

Comments

Financial debt as of March 31, 2008:

•

Syndicated loan: €311million

•

ABS: €301 million•

Bilateral credits: €120 million

•

Convertible: €271 million

Net Working Capital:•

Seasonal effect; sales-, acquisition-

and price-driven

* Including

Namasco Ltd. / Canada

30

Statement of cash flow

Comments(€m) Q12008

Q12007

Operating CF 107 92

Changes in net working capital -88 -164

Others -29 -16

Cash flow from operating activities -10 -88

Inflow from disposals of fixed assets/others 3 1

Outflow from investments in fixed assets -144 -18

Cash flow from investing activities -141 -17

Changes in financial liabilities 111 51

Net interest payments -5 -3

Cash flow from financing activities 106 48

Total cash flow -45 -58

Operating CF more than fully covered the investments in net working capital

Investing CF mainly impacted by increased stake in Swiss Holding

CF from financing activities reflects the increased utilization of debt instruments

31

General financial targets/limits and guidance

Generaltarget/limit

ActualQ1 2008

Top line sales growth > 10% p.a. 7.1%

Underlying EBITDA margin* > 6% 5.94%

Leverage (Net financial debt/EBITDA LTM) < 3.0x 2.3x

Gearing (Net financial debt/Equity) < 150% 117%

Challenging financial targets throughout the cycle

* According to new definition

32

Outlook 2008Based on good Q1 results, Q2 and H1 EBITDA are expected to be higher than last year supported by an on-going favorable market environment for the steel distribution

Positive development expected to continue. Thus, we expect the 2008 results to exceed the 2007 results supported by

€30 million additional EBITDA from STAR program

Positive contribution of additional €25-30 million EBITDA from acquisitions made in 2007

Positive contribution of €15-20 million EBITDA from acquisitions made in 2008

High likelihood of further stock gains in the course of 2008

Raised outlook –

2008 results above 2007

33

Agenda

1.

Overview and market

Appendix

2.

Current market development and expectations for 2008

3.

Profitable growth initiatives

4.

Financials and outlook

34

Appendix

Table of contents

Quarterly results and FY results 2007/2006/2005

Steel cycle and EBITDA/cash flow relationship

Debt facilities

Current shareholder structure

Financial calendar 2008 and contact details

35

June 20: Annual General MeetingAugust 14: Q2 Interim ReportOctober 14/15: Capital Market DaysNovember 14: Q3 Interim Report

Financial calendar 2008 and contact details

Financial calendar 2008

Claudia Nickolaus, Head of IRPhone: +49 203 307 2050Fax: +49 203 307 5025E-mail: claudia.nickolaus@kloeckner.deInternet: www.kloeckner.de

Contact details Investor Relations

36

(€m) Q1 2008

Q4 2007

Q3

2007

Q22007

Q12007

Q42006

Q32006

Q22006

Q12006

FY2007

FY2006

FY2005*

Volume (Ttons) 1,720 1,585 1,601 1,663 1,629 1,453 1,467 1,605 1,601 6,478 6,127 5,868

Sales 1,660 1,492 1,583 1,650 1,550 1,398 1,394 1,418 1,323 6,274 5,532 4,964

Gross profit 340 300 286 328 307 294 313 316 285 1,221 1,208 987

% margin 20.5 20.1 18.0 19.8 19.8 21.0 22.5 22.3 21.5 19.5 21.8 19.9

EBITDA 109 83 93 103 92 70 143 104 79 371 395 197

% margin 6.6 5.6 5.9 6.2 5.9 4.9 10.3 7.3 6.0 5.9 7.1 4.0

EBIT 93 65 76 87 78 55 128 89 64 307 337 135

Financial result -17 -17 -17 -52 -10 -12 -24 -14 -14 -97 -64 -54

Income before taxes 76 48 59 35 68 43 105 75 50 210 273 81

Income taxes -24 -6 -14 -12 -22 16 -20 -22 -13 -54 -39 -29

Minority interests 2 4 8 4 6 5 8 9 6 23 28 16

Net income 51 37 37 19 40 54 76 45 31 133 206 36

EPS basic (€) 1.09 0.80 0.79 0.41 0.86 1.16 1.64 0.97 - 2.87 4.44 -

EPS diluted (in €) 1.06 0.80 0.78 - - 1.16 - - - 2.87 4.44 -

Quarterly results and FY results 2007/2006/2005

*

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).

37

Debt facilities

(€m) Old debtstructure

Change indebt structure

New debtstructure

ABS Europe 380 +40 420

ABS USA 60 +30 90

Total 440 +70 510

Syndicated loan - +600 600

Bilateral credit agreements 480 -100 380

Total senior bank facilities 480 +500 980

Convertible bond - +325 325

High yield bond 170 -170 -

Total facilities 1,090 +725 1,815

38

Steel cycle and EBITDA/cash flow relationship

Comments

Klöckner & Co buys and sells products at spot prices generallySales increase as a function of the steel price inflation environmentCost of material are based on an average cost method for inventory and therefore lag the steel price increaseThis time lag creates accounting windfall profits (windfall losses in a decreasing steel price environment) inflating (deflating) EBITDAAssuming stable inventory volume cash flow is impacted by higher NWC needsThe windfall profits (losses) are mirrored by inventory book value increases (decreases)

Theoretical relationship*

Windfall

profits

Windfall losses

(€m)

Margin

Margin

12

3

4

4

5

6 6

*Assuming stable inventory volumes

Steel price SalesCost of material EBITDACash flow

39

Geographical breakdown of identified institutional investors

Current shareholder structure

Comments

Identified institutional investors account for 74%

US based investors still dominate but share decreased in favor of UK (up from 14% as of Sept. 2007)

Top 10 individual shareholdings represent around 48%

Rest of World < 1% (geographical breakdown)

Retail share increased from 11% to almost 14%

Rest of Europe

US

United Kingdom

Germany

SpainSwitzerland

Source: Survey

Thomson Financial (as of Febr. 08)

20%

4%4%

24%

41%

7%

40

Our symbol

the earsattentive to customer needs

the eyeslooking forward to new developments

the nosesniffing out opportunities

to improve performance

the ballsymbolic of our role to fetch

and carry for our customers

the legsalways moving fast to keep up with

the demands of the customers

41

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 climate

and 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.