Klöckner & Co SE

A Leading Multi Metal Distributor

Q2 2014 Results

Analysts’ and Investors’ Conference

CEO

Gisbert Rühl

August 7, 2014

CFO

Marcus A. Ketter

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

Klöckner & Co SE

A Leading Multi Metal Distributor

Highlights and update on strategy

CEO

Gisbert Rühl

Highlights Q2 01

4

• Steel distribution markets improved only slightly in Europe (+2.0%*) but significantly in

the US (+5.8%**)

• Our shipments went up less pronounced than market by 1.8% to 1.7m To yoy due to

restructuring measures and exit of low margin business

• Sales went down by 1.0% yoy to €1.7bn impacted by lower price level and weaker USD

• Gross profit improved despite lower sales by 6.4% to €325m due to gross margin expansion

by 1.3%p to 19.3% yoy

• EBITDA of €56m came in the upper half of guidance range of €50to 60m

• Positive quarterly net income of €10m achieved

• Leverage reduced from 4.4x to 3.2x EBITDA yoy

• Implementation of KCO WIN measures on track

• Swiss reinforcing steel specialist Riedo fully acquired and successfully integrated

• EBITDA in Q3 expected on the level of Q2 in a range between €50 and €60m

• Specified EBITDA guidance for full year 2014 of €190m to €210m

* Source: Eurometal; distribution shipments in Q2 in Europe yoy.

** Source: MSCI; distribution shipments/ SSC in Q2 in the US yoy.

Substantial yoy EBITDA-improvement mainly through self-help measures 01

EBITDA-bridge (€m)

• Self-help measures contributed

€13m to EBITDA against prior year

in Q2 and €27m ytd

• EBITDA contribution achieved

through KCO 6.0 amounted to

€8m in Q2 and €22m ytd

• KCO WIN on track with first

EBITDA contribution of €5m

in Q2

• EBITDA-margin improved by 0.8%p

to 3.3% in Q2 and by 0.9%p to 3.1%

ytd

Comments

Q2 yoy

5

Self-help measures:

€13m

12

56

43

-16

KCO WIN

Effect

OPEX** EBITDA

Q2 2014

5

KCO 6.0

Effect

Price

Effect

4

Volume

Effect*

EBITDA

Q2 2013

H1 yoy

15

22101

72

OPEX**

-16

KCO WIN

Effect

5

KCO 6.0

Effect

Price

Effect

3

EBITDA

H1 2014

Volume

Effect*

EBITDA

H1 2013

Self-help measures:

€27m

* Including Riedo impact of €10m

** Including -€7m pension adjustment NL in Q2/2013

and -€4.3m Riedo

8

5

KCO 6.0 successfully implemented, KCO WIN on track 01

6

2013

2014

€51m

€61m

€41m

Total annual EBITDA-impact of >€150m

from 2014 onwards

2011-2012

€22m

KCO 6.0

KCO WIN

2014

2015 €30m

Total annual EBITDA-impact of ~€50m

from 2015 onwards

€20m €5m

already realized

already realized

Comprehensive transformation initiated 01

7

Klöckner & Co 2020

Differentiation

Growth and

optimization

Sourcing

Products and

services

Digitalization

External & internal

growth

Operations

Stabilization Restructuring

Enabling

activities

Management &

pers. development

Controlling &

IT systems

Finished by successful implementation of KCO 6.0

Improvements through KCO WIN

External growth with focus on higher value-added business

Internal growth with focus on US market

Broad product range and accelerated expansion of higher value-

added processing and services

Digitalization of supply chain

Realization of higher scale-effects through expansion of partnerships

with specific suppliers

Increased effort in management capabilities and measurability

of people management

Deployment of most modern controlling and IT systems

Mid-term EBITDA-Margin-Target of >5% until 2017 01

8

Growth and optimization Differentiation Stabilization

2017

EBITDA-margin

Sourcing

Products and

Services

Digitalization

KCO WIN

0.8%

Riedo

Acquisition

0.2%

KCO 6.0

(remaining

effects)

0.6% 2.0%

>5% > 2.0%

2013

EBITDA-margin

before

restructuring and

one-offs

Klöckner & Co SE

A Leading Multi Metal Distributor

Financials CFO

Marcus A. Ketter

Shipments and sales 02

Sales (€m) Shipments (Tto)

• Shipments increased qoq following the usual

seasonal pattern and due to Riedo

• Sales growths qoq exceeded increase of

shipments due to higher prices per ton

• Yoy decline also a result of f/x variance

10

1,863 1,764

1,585 1,646 1,690 1,617 1,492

1,633 1,720

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

1,964 1,847

1,633 1,625 1,698

1,600 1,455

1,572 1,680

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

+1.8%

+5.3%

-1.0%

+6.9%

EBITDA* (€m) / EBITDA-margin* (%)

Gross profit and EBITDA-margin improvement is keeping momentum 02

Gross profit* (€m) / Gross-margin* (%)

• Gross-margin up in Q2 by 1.3%p from 18.0%

to 19.3% yoy

• EBITDA continues to benefit from KCO 6.0

measures and now additionally from KCO WIN

• EBITDA-margin improved in Q2 from 2.5%

to 3.3% yoy

* Before restructuring costs

11

344 344

306 302 303 305 296 288

302 325

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

18.7 FY

17.5 FY

19.3 H1

47

50

18 22

29

43

39 40

45

56

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

2.4 FY

1.8 FY

3.1 H1

Segment performance (shipments and sales) 02

• Shipments

• Europe up by 5.0% mainly due to Riedo acquisition

• Americas down by 2.3% due to consolidation of sites

and accelerated exit of low margin business (-4.4%)

12

Shipments (Tto)

+1.8%

Q2 2014

1,720

733

987

Q2 2013

1,690

749

941 +5.0%

-2.3% Americas

Europe

Sales (€m)

-1.0%

Q2 2014 Q2 2013

+1.1%

-4.6%

1,061 1,072

637 608

Europe

Americas

Comments

1,698 1,680 • Sales

• Only slightly up in Europe due to lower price level

• Americas segment additionally negatively impacted

by weaker USD

• Focus on higher margin business visible in both

segments

• Europe

• Gross-margin up by 1.4%p to 20.4%

• EBITDA-margin up by 0.4%p to 3.0%

• Americas

• Gross-margin up by 1.2%p to 17.5%

• EBITDA-margin up by 1.4%p to 4.6%

Segment performance (gross profit and EBITDA) 02

13

Q2 2014

325

Q2 2013

305

200

Q2 2014

56

Q2 2013

43

+8.4%

+2.4%

+18.2%

+36.7%

201

104 106

28

20 28

HQ

+29.6%

-5 -4

32

219

+6.4%

Gross profit (€m) Comments

EBITDA (€m)

Americas

Europe

Europe

Americas

Cash flow and net debt development 02

Cash flow reconciliation in Q2 2014 (€m)

• NWC build-up and acquisition of Riedo

reflected in free cash flow of -€168m

• “Other” include changes in other operating

assets and liabilities and non-cash items

• Capex of €86m includes Riedo acquisition

with €82m

Comments

36

Development of net financial debt in Q2 2014 (€m)

14

56

Free

cash flow

Q2 2014

-168

Capex/

Acquisition

-86

Cash

flow from

operating

activities

-82

Other

-11

Taxes

-4

Interest

-21

Change

in NWC

-102

EBITDA

Q2 2014

June 30, 2014

579

Other

-4

Capex (net)

-86

CF from

operating

activities

-82

March 31, 2014

407

• Net debt increased from €407m to €579m

following the usual seasonal pattern and

the acquisition of Riedo

• Equity ratio further solid at 40%

• Net debt of €579m

• Gearing* at 41%

• Leverage** 3.2x

• NWC increased from €1,330m to €1,463m qoq

Balance sheet remains strong 02

* Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 23, 2013.

Comments

15

Assets

687914

350595

3,595

1,147

1,166

Other assets

Liquidity

Trade receivables

Inventories

Jun 30, 2014

3,658

1,156

1,238

Dec 31, 2013

637 689

366

262

911

Pensions

Other liabilities

Trade payables

Equity 1,445

Financial liabilities

Jun 30, 2014

3,658

339

921

1,447

Dec 31, 2013

3,595

236

Equity & liabilities

40% 40%

** Leverage = Net debt/EBITDA before restructuring expenses

last twelve months.

Klöckner & Co SE

A Leading Multi Metal Distributor

Outlook CEO

Gisbert Rühl

US

Segment specific business outlook 03

17

Steel demand

Construction industry

Automotive industry

Machinery and mechanical

engineering

Europe

+2-3% +4-5%

Outlook

• Q3 2014

• Shipments to be seasonally slightly lower

• Increasing EBITDA contribution of KCO WIN measures

• EBITDA expected on the level of Q2 in a range between €50 and €60m

• FY 2014

• Shipments and sales to be slightly up also through Riedo acquisition

• EBITDA expected in a range between €190m to €210m

• Reduction of IDA expense by some €25m to €155m anticipated

• Expected positive net income should facilitate return to dividend payment for fiscal year 2014

03

18

Highlights and update on strategy 01

Financials

Outlook

Appendix

02

03

04

Agenda

19

Quarterly results and FY results 2011-2014 04

20

(€m) Q2

2014

Q1

2014

Q4

2013

Q3

2013

Q2

2013

Q1

2013

Q4

2012* Q3

2012*

Q2

2012*

FY

2013

FY

2012*

FY

2011

Shipments (Tto) 1,720 1,633 1,492 1,617 1,690 1,646 1,585 1,764 1,863 6,445 7,068 6,661

Sales 1,680 1,572 1,455 1,600 1,698 1,625 1,633 1,847 1,964 6,378 7,388 7,095

Gross profit 325 302 284 296 305 303 298 306 340 1,188 1,288 1,315

% margin 19.3 19.2 19.5 18.5 18.0 18.6 18.3 16.6 17.3 18.6 17.4 18.5

EBITDA 56 45 16 36 43 29 -35 18 33 124 60 217

% margin 3.3 2.9 1.1 2.3 2.5 1.8 -2.2 1.0 1.7 2.0 0.8 3.1

EBIT 33 23 -36 10 17 2 -89 -9 -24 -6 -105 111

Financial result -16 -17 -17 -19 -19 -19 -14 -22 -18 -73 -80 -84

Income before taxes 17 6 -52 -8 -2 -16 -103 -31 -42 -79 -185 27

Income taxes -7 -3 -7 -3 -2 1 -19 3 3 -12 -18 -17

Net income 10 3 -59 -11 -4 -16 -123 -29 -39 -90 -203 10

Minority interests 0 0 -5 0 0 0 -1 -1 0 -6 -3 -1

Net income KlöCo 10 3 -54 -11 -4 -16 -122 -28 -39 -85 -200 12

EPS basic (€) 0.10 0.03 -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.39 -0.85 -2.00 0.14

EPS diluted (€) 0.10 0.03 -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.39 -0.85 -2.00 0.14

* Restated due to initial application IAS 19 revised 2011.

Recovery continued in both segments 04 E

uro

pe

Am

ericas

21

Shipments (Tto) Sales (€m) EBITDA* before restructuring (€m)

Shipments (Tto) Sales (€m) EBITDA before restructuring (€m)

* 2012: as restated for the initial application of IAS19 revised 2011.

Restructuring costs (€m) Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q3 2013 Q4 2013

Europe 10 3 17 -1 57 13

Americas 1 2 11 ** Including pension release: Q2 2013 €7m, in Q3 2013 €6m and Q4 2013 €1m

and sale of French La Courneuve site €13m.

1.097

1.018

908 930 941 903

839

956 987

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

1.237

1.149

1.041 1.017 1.061

1.006 935

1.015 1.072

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

35

12

16 14

28 26

34

26

32

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2**

2013

Q3**

2013

Q4**

2013

Q1

2014

Q2

2014

766

746

677

716

749

714

653

677

733

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

727 698

592 608 637

594

520 557

608

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

22

12

16

21 20 20

13

24

28

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

+5.0% +1.1%

-2.3% -4.6%

Segment performance Q2 2014 04

22

Europe Americas HQ/Consol. Total

Shipments (Tto)

Q2 2014 987 733 1,720

Q2 2013 941 749 1,690

Δ % 5.0 -2.3 1.8

Sales (€m)

Q2 2014 1,072 608 1,680

Q2 2013 1,061 637 1,698

Δ % 1.1 -4.6 -1.0

EBITDA (€m)

Q2 2014 32 28 -4 56

% margin 3.0 4.6 3.3

Q2 2013 28 20 -5 43

% margin 2.6 3.2 2.5

Δ % EBITDA 18.2 36.7 29.6

Balance sheet as of June 30, 2014 04

23

(€m) June 30, 2014 December 31, 2013

Non-current assets 1,041 977

Inventories 1,238 1,166

Trade receivables 914 687

Other assets 115 170

Cash & Cash equivalents 350 595

Total assets 3,658 3,595

Equity 1,447 1,445

Total non-current liabilities 1,165 1,077

thereof financial liabilities 780 727

Total current liabilities 1,046 1,073

thereof trade payables 689 637

Total equity and liabilities 3,658 3,595

Net working capital 1,463 1,216

Net financial debt 579 325

Shareholders’ equity:

• Healthy at 40%

Financial debt:

• Gearing at 41%

• Gross debt of €0.9bn and

cash position of €0.3bn

result in a net debt position

of €579m

Comments

24

04 Improvement of maturity profile

32

197

16 16 38

52

133

561

238

360

186

0

200

400

600

800

1000

1200

2014 2015 2016 2017 Thereafter

Committed lines

Bilaterals Promissory Notes ABS

US ABL Syndicated Loan Convertibles

435

1,175

149

• Syndicated loan extension option of one year till May 2017 successfully executed

• ABS Europe extended by one year till May 2017

• S&P rating improved from B+, Outlook „negative“ to B+, Outlook „stable“

€m Facility Committed Drawn amount

Q2 2014* FY 2013*

Bilateral Facilities 1) 537 164 62

ABS 561 241 191

Syndicated Loan 360 161 161

Promissory Note 185 186 238

Total Senior Debt 1,643 752 652

Convertible 2009 0 0 98

Convertible 2010 2) 186 177 171

Total Debt 1,829 929 921

Cash 350 595

Net Debt 579 325

*Including interest

1) Including finance lease

2) Drawn amount excludes equity component

Profit & loss Q2 2014 04

25

(€m) Q2 2014 Q2 2013

Sales 1,680 1,698

Gross profit 325 305

Personnel costs -146 -142

Other operating expenses (net) -123 -120

EBITDA 56 43

Depreciation & Amortization -23 -26

EBIT 33 17

Financial result -16 -19

EBT 17 -2

Taxes -7 -2

Net income 10 -4

Sales by markets, products and industries 04

26

As of December 31, 2013

Current shareholder structure 04

27

Geographical breakdown of identified

institutional investors

Comments

• Identified institutional investors

account for 55%

• German investors incl. retail

dominate

• Top 10 shareholdings represent

around 31%

• Retail shareholders represent 27%

As of July 2014

Appendix 04

28

Financial calendar 2014

October 1-2, 2014 Capital Market Days, Berlin

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