Klöckner & Co SE A Leading Multi Metal Distributor Roadshow Macquarie/ Danske Bank Helsinki/Copenhagen CFO Marcus A. Ketter September 5-6, 2013
Klöckner & Co SE
A Leading Multi Metal Distributor
Roadshow Macquarie/ Danske Bank
Helsinki/CopenhagenCFOMarcus A. Ketter
September 5-6, 2013
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
Agenda
3
Highlights and update on strategy02
Financials Q2/H1 2013
Outlook
Appendix
03
04
05
Overview01
Klöckner & Co SE at a glance01
4
CustomersDistributor / Service CenterProducers
Products :
Klöckner & Co SE• Largest producer-independent steel and metal
distributor and one of the leading steel service center companies in the European and American markets combined
• Distribution and service platform with around 230 locations worldwide
• Key figures for 2012Turnover: 7.1 million tonsSales: €7.4 billionEBITDA €139 million (before
restructuring)
Services:• Machinery
and mechanical engineering
• Yellow Goods• White Goods• Miscellaneous
• Automotive
• Commercial/ residential construction
• Infrastructure
Holistic solution from covering procurement, logistics and processing01
5
Suppliers SourcingProducts
and servicesLogistics /distribution
• As a producer-independent distributor, our customers benefit from our diverse national and international procurement options
Customers
• Procurement of large quantities
• Strategic partnerships
• Extensive product range
• Excellent product and processing quality
• Wide-ranging service provision
• Local presence• Individual
delivery, including 24-hour-service
• More than 160,000 customers
• Average normal order size approx. €2,000
Klöckner & Co value chain
Global reach – local presence01
6
• With around 230 locations in 15 countries we assure local availability for our customers
• Austria• Belgium• Brazil• China• England• France• Germany• Ireland• Mexico• Netherlands• Puerto Rico• Scotland• Spain• Switzerland• USA
USA: 38%
Brazil: 1%
China: 1%
D*: 25%
F/BE: 13%
CH: 10%
NL: 3%
UK: 6%
ES: 3%
As of December 2012
Europe: 60%
* 2012 EEC included, but completely sold in Q1 2013
Acquisitions shift exposure towards more promising regions and products01
7
* 2012 EEC included, but completely sold in Q1 2013
As of December 2012
Klöckner is together with TK the second largest steel and metal distributor in Europe and number three in the US
01
8
1%
Reliance
Ryerson
TK
Samuel
O'Neal
Russel
Macsteel
Metals USA
PNA
Namasco
Others
Europe
US
2007 2011
5%AMDS
TK
KCO
Salzgitter
Tata
Others
5%AMDS
TK
KCO
Salzgitter
Tata
Others
4%Reliance
Ryerson
KloecknerMetals
TK
Others
• Position in the US significantly improved whereas market share in Europe is expected to remain stable despite heavy restructuring measures
Source: Eurometal, Purchasing Magazine, Service Center News
Steel demand in EU-27 still well below pre crisis level 01
9
• Continuous recovery in North America since 2009, but again sharp decline in EU-27
• Development in Brazil surprisingly weak since 2010, whereas steel demand in China is further increasing
• High overcapacities in Europe and China disturb global balance of supply and demand
• Capacity utilization too low to strengthen margins through stronger price discipline
Source: WSA
198183
120
145153
140 139
2013e201220112010200920082007
142 131
84
111121
2013e201220112010200920082007
22 24 19 26 25 26 27
201220112010200920082007 2013e
131 135
210
Installed steel production capacity in million t
Steel demand in million t
+34% -30%
-5%
ChinaBrazilNAFTAEU-27
133
35
+30%
-2%
2012
669
646
2011
624
2010
588
2009
551
2008
447
2007
418
2013e
>25%
>850
Agenda
10
Highlights and update on strategy02
Financials Q2/H1 2013
Outlook
Appendix
03
04
05
Overview01
Negative market impact increasingly compensated by far advanced restructuring measures
02
11
EBITDA-margin improved, net loss reduced
• Market especially in Europe (-7,4% yoy)* but also in the US (-2.5% yoy)** in Q2 further under pressure
• Turnover of Klöckner & Co declined by 9.3% yoy also due to closure and divestment of sites and exit of low margin business (-5.0%p)
• Sales -13.5% yoy additionally burdened by lower price level Gross profit of €305m under proportionally by 11.4% below prior year, gross margin improved from 17.5% to 18.0%
• Q2-EBITDA of €43m met guidance of €35-45m also w/o incl. €7m from the release of pension accruals
• Restructuring measures far advanced: 60 out of 70 sites closed and 1.800 out of more than 2.000 HC reduced; extended measures to be implemented by the end of 2013, EBITDA contribution of €17m in Q2 and €29m in H1 realized
• Operating EBITDA of between €30m-€40m expected for Q3 2013
• Full year operating EBITDA target at last year`s level of €140m (before restructuring) despite weaker H1 2013. Restructuring costs of €18m (w/o compensating effects) expected against €77m in 2012.
* Source: Eurometal; turnover of distribution in Q2 in Europe yoy.
** Source: MSCI; turnover of distribution/ SSC in Q2 in the US yoy.
Against the background of continuing muted outlook for the European steel market we further extended our comprehensive restructuring program (KCO 6.0) in May
02
12
Measures
• Program extension in France
• Realization of further synergy potential in the US
• Reduction of overall > 2,000 employees (= 17%) and ~70 sites
• Total cost reduction increased to €190m
• Total annual EBITDA-impact increased to ~€160m (before: €150m)
• Reduction of NWC by >€170m
• Additional cost of approximately €18m mainly offset by NWC release
2013
2014
€51m
already realized
€65m
€45m
Total annual EBITDA-impact of ~€160m
2011-2012
€29m
Restructuring far advanced02
13
Employees
• 1,800 out of more than 2,000 HC reductions completed
• 60 out of 70 targeted branches closed or sold since start of program in Q3 2011
• Only extended measures concerning France and the US outstanding which are according to plan to be implemented in H2
Comments
UKESP
FEEC
9,995
11,577
GER
HoldingUS BR
Q3 2011
Europe
-1,200
Americas
Q2 2013
-359
Reduced by ~ 1,600, including temps ~1,800
~9,700
F, US
Q4 2013
-23
Sites
230
290UK
ESP
EEC GERBR
Q3 2011 Q2 2013
220F, US
F
US
Q4 2013
290
230220
KCO 6.0 measures having strong impact on the P&L02
1) After restructuring costs of €20m.
269274280288
-9%
Q2 13Q1 13Q4 123)Q3 12 3)Q2 12 3)
294
-2.2% -2.6% -2.3%
in €mOPEX
14
-1.8%
2) Includes one-off gain of €7m due to release of pension accruals.
• In H1 measures contributed an additional €29m to EBITDA againstprior year, Q1: €12m, Q2: €17m
• Cost cuts achieved trough KCO 6.0 amounted to €40m in H1
• Gross profit despite higher margin€-75m due to lower turnover
• OPEX declined by 9% compared toQ2 2012
Comments
3) Incl. expenses due to initial application of IAS19 revised 2011 and excl. restructuring expenses.
KCO 6.0 EBITDA impact
72
30
40
-11
-27
-37
77*)
Total GP effect: ~€75m
Price Effect
Volume Effect
EBITDA H1 2012
OPEX EBITDAH1 2013
KCO 6.0 Fix-cost effect
KCO 6.0 GP effect
KCO 6.0 EBITDA
expenses€29m
KCO WIN measures to support “Klöckner & Co 2020“ strategy02
15
Enablingactivities
Differentiation
Operations
External & internal growth
Service model
Business model innovations
• Profitable growth strategy with focus on value added products and services
• Optimized net working capital• Optimized pricing and sales force management• Global sourcing to leverage price potential and global material flows
• Advanced logistics• Extended e-commerce solutions• Specific value streams for servicing customers
• Opportunities for disruptive innovations through fundamental business model changes
Management & personnel development
Controlling & IT systems
• Optimized and extended management reviews and development programs
• Advanced systems for Accounting, Controlling, Audit, Tax & Treasury• Extended Corporate IT • Advanced global collaboration
KCO WIN
Growth andoptimization
Exposure to peripheral states in Europe is rather limited after restructuring02
16
Reduced by end of the year
6,923
2,000
European Employees1)
46
14
155
European sites2)
2) 1) Basis is September 20112) Distribution locations only
36%9% 5%
20%
<5%
23%2%
95%
closed end of 2013
sold (EEC)
• 95% of European business is in Core Europe (Sales 2012)
Despite market distortion basis for reaching higher margin levelestablished through transformation of Group structure and cost cutting
02
17
• Exposure to historically more commoditized European general line distribution cut by half until 2015
BSS 2010
Macsteel 2011
Primary 2007
Canada 2008
USA
EEC 2013Restructuring
KCO 6.0
€6.3bn €8.6bn
grow and increase margin
grow and stabilize high earnings level
improve profitable core
3% Canada
13% USA
14% CH
70% European general line distribution
43% USA
1% EM
12% CH
9% BSS
35% European
general line distribution
KVT 2008
Temtco 2008
Brazil 2011
2007 2015eOrganicgrowth
Major acquisitions
Major divestments /restructuring
In the same period share of higher margin business will be increased by 11%pts02
18
Construction42% Construction
35% Construction30%
Machinery25%
Machinery25% Machinery
28%
Automotive6% Automotive
12%Automotive
14%
Others27%
Others28%
Others28%
2007 2013e 2015e
+6%pts
-7%pts-5%pts
+5%pts
• Sales exposure to more commoditized construction business down from 42% in 2007 to 30% by 2015
31%
42%
Agenda
19
Highlights and update on strategy02
Financials Q2/H1 2013
Outlook
Appendix
03
04
05
Overview01
Financials Q2 201303
20
EBITDA
Sales
Gross profit
Turnover
* Excluding restructuring costs but restated for the initial application of IAS19 revised 2011.
€1,964m
€1,698m
-13.5%
Q2 2013Q2 2012
1,863 Tto
-9.3%
Q2 2012 Q2 2013
1,690 Tto
-13.5%
Q2 2012
€43m
€50m*€340m**
€305m
-11.4%
Q2 2013Q2 2012 Q2 2013€33m**
Restructuring costs
** Including restructuring costs and restated for the initial application of IAS19 revised 2011.
+31.7%
€344m*
-10.2%
Financials H1 201303
21
EBITDA
Sales
Gross profit
Turnover
€3,909m
€3,322m
-15.0%
H1 2013H1 2012
3,720 Tto
-10.3%
H1 2012 H1 2013
3,336 Tto
-26.1%
H1 2012€72m
€683m**€608m
-11.6%
H1 2013H1 2012 H1 2013
€97m*
€77m**
Restructuring costs
** Including restructuring costs and restated for the initial application of IAS19 revised 2011.
-6.5%
* Excluding restructuring costs but restated for the initial application of IAS19 revised 2011.
€687m*
-11.1%
1,690 1,763 1,765
1,636
1,857 1,863 1,764
1,585 1,646
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
1,885 1,8851,739
1,945 1,9641,847
1,633 1,625 1,698
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
+30.5%
Turnover and sales03
Sales (€m) & Americas shareTurnover (Tto) & Americas share
• Turnover down 9.3% yoy due to weak steel markets and restructuring impact of -5.0%p but sequentially up by 2.7% driven by seasonal effects
• Turnover share of Americas segment continuously increasing from 32% in Q2 2011 to over 44% in Q2 2013
• Sales -13.5% yoy additionally impacted by lowerprice level
• Average price per ton down yoy (Q2 2013: €1,004 vs. Q2 2012: €1,054)
22
-13.5%
+4.5%
27.633.6 34.6 37.1 37.0 37.8
36.3 37.4
+2.7%
-9.3%
32.4
39.5 39.5 40.5 41.1 42.3 42.7 43.537.5
44.3
EBITDA (€m) / EBITDA-margin (%)
Gross profit and EBITDA03
Gross profit (€m) / Gross-margin (%)
• Despite further declining prices, gross profit margin improved compared to Q2 2012 (+0.5%p) mainly due to exit of low margin business
* Before restructuring costs.
23
• Strong cost reduction with positive effect on EBITDA-margin, generating significantly higher EBITDA qoq out of only slightly improved gross profit
** As restated for the initial application of IAS19 revised 2011.
62
37
24*
47*50*
1821*
29
43*
3.3
1.91.3*
2.4* 2.5* 1.0 1.3*1.8
2.5*
Q22011
Q32011
Q42011
Q12012**
Q22012**
Q32012**
Q42012**
Q12013
Q22013
337
318
307
344 344*
306302* 303 305
17.9
16.8 17.617.7 17.5*
16.6
18.5* 18.618.0
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
* Incl. €7m pension release; without release 2.1% EBITDA-margin
571
698646
752 766 746677
716749
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
520
634 602
722 727 698
592 608 637
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
1,3651,251
1,1371,223 1,237
1,1491,041 1,017 1,061
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
1,1921,067 990
1,105 1,097 1,018908 930 941
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Key figures by segment03
Turnover (Tto) Sales (€m) EBITDA (€m)
* Restructuring costs: Europe: €3m in Q1, €17m in Q2, €-1m in Q3 and €57m in Q4; Q4 2011: €10m; Americas: €1m in Q4.
Turnover (Tto) Sales (€m) EBITDA (€m)
Eur
ope
Am
eric
as
-14.3% -14.2%
-2.1% -12.3%
24
** As restated for the initial application of IAS19 revised 2011.
50
24 22* 22*
35*
12*16* 14
28***
Q22011
Q32011
Q42011
Q12012**
Q22012**
Q32012**
Q42012**
Q12013
Q22013
23
1513
29
22
12
16*
21 20
Q22011
Q32011
Q42011
Q12012**
Q22012**
Q32012**
Q42012**
Q12013
Q22013
*** Includes €7m release of pensions.
Cash flow and net debt development03
Cash flow reconciliation in Q2 2013 (€m)
• NWC reduced qoq due to weak demand
• Capex (net) of €-8m
• Other mainly includes cash outs for restructuring provisions of €11m and payments for settling hedging derivates of €12m
• Interest relates to cash outs mainly for convertible bond (€6m), promissory notes (€10m), transaction cost for ABS and syndicated loan renewal (€2m) and interest derivates (€3m)
Comments
-8-20
-29
-12
-35
-9
18
43
EBITDAreported
Change inNWC
Taxes Other CF fromoperatingactivities
Capexnet
Free CFInterest
25
Development of net financial debt in Q2 2013 (€m)
Q1 2013
CF fromoperatingactivities
Capex(net)
Other*Q2 2013
-48913-482
-8-12
* exchange rate effects, interest.
• Equity ratio still solid at 39%
• Net debt of €489m
• Gearing* at 33%
• NWC increased seasonally by €49m to €1,456m
** As restated for the initial application of IAS 19 rev. 2011.
Strong balance sheet03
* Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from businesscombinations subsequent to May 23, 2013.
Comments
26
Assets
610 570
787 960
Liquidity
Other current assets
Trade receivables
Inventories
Non-current assets
Q2 2013
3,897
100
1,198
1,069
FY 2012**
3,880
122
1,254
1,107
994
1,384
1,502
Q2 2013
Equity
Non-current liabilities
Current liabilities
3,897
1,132
1,251
1,514
FY 2012**
3,880
Equity & liabilities
38.7% 38.9%
Balanced maturity profile June 201303
27
Maturity profile of committed facilities and drawn amounts (€m)
€m Facility CommittedDrawn amount
Q2 2013* FY 2012*
Bilateral Facilities 1) 565 184 98
Other Bonds 4 4 9
ABS 570 179 161
Syndicated Loan 360 161 161
Promissory Note 269 270 348
Total Senior Debt 1,768 798 777
Convertible 2009 2) 98 92 92
Convertible 2010 2) 186 170 164
Total Debt 2,052 1,060 1,033
Cash 570 611
Net Debt 489 422
€m Q2 2013
Adjusted equity 1,493
Net debt 489
Gearing 3) 33%
*Including interest1) Including finance lease2) Drawn amount excludes equity component3) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations
subsequent to May 23, 20134) Incl. Swiss facilities of 156 Mio. EUR which are automatically renewed on a yearly basis
Left side: committed facilities Right side: drawn amounts
52
42261
104
112210
67
360
8
8
11
19
46
206
371
136
160
2016
864
136
360268
186
212
98
62
2013
216
Thereafter
471
71
2015
299
186
71179
98
62
2014
ConvertiblesPromissory notesSyndicated loanABSBilaterals
4)
Solid financing and balance sheet structure support strategy “Klöckner & Co 2020“03
28
• Balance sheet remains strong
• Equity ratio still solid at 39%
• Gearing at a low level of 33%
• Financing position is very robust
• Diversified finance structure with 10 different finance instruments
• Balanced maturity profile with average maturity of 3 years
• Access to facilities of around €2.1bn in total
• €570m cash
• European ABS and Syndicated Loan each amounting to €360m prolonged until May 2016
• Targets for 2013
• Free cash flow positive
• Reducing NWC and net debt
Agenda
29
Highlights and update on strategy02
Financials Q2/H1 2013
Outlook
Appendix
03
04
05
Overview01
Demand expectations for H204
30
As the seasonal summer slowdown approaches, markets in Europe and North America will remain quiet with prices tending overall upwar ds in Q3
• Construction in Germany and Switzerland slightly better, France and UK stable on low level, Spain weak
• Auto is expected to be low throughout 2013, especially in France
• Slightly improving demand for machinery & mechanical engineering in Germany
• Auto, HVAC, barge and shipbuilding, storage tanks better
• non-res construction, mining, yellow goods, machinery weaker
Europe
US
Brazil
China
• Further increasing demand for agricultural equipment, trucks and in energy sector
• Weaker demand for mining and sugar mills
• Healthy demand for steel structures and port equipment for export
• Basically all other sectors are not doing well, particularly mechanical engineering and construction equipment, which is heavily oversupplied
Outlook
• Q3 2013
• Turnover and sales to be seasonally lower but less pronounced because of improving outlook in the US
• EBITDA guidance of €30-40m driven by increasing prices and further restructuring effects kicking in
• FY 2013
• Turnover and sales expected to come in below prior year`s level mainly due to weaker H1
• Operating EBITDA target at last year`s level of €140m before restructuring costs
• Free cash flow expected to be positive
• Net debt again to be reduced yoy despite restructuring cash-outs
04
31
Agenda
32
Highlights and update on strategy02
Financials Q2/H1 2013
Outlook
Appendix
03
04
05
Overview01
Quarterly results and FY results 2008-201305
33
(€m)Q2
2013Q1
2013Q4
2012*Q3
2012*Q2
2012*Q1
2012*Q4
2011Q3
2011Q2
2011FY
2012*FY
2011FY
2010FY
2009FY
2008
Turnover (Tto) 1,690 1,646 1,585 1,764 1,863 1,857 1,636 1,7 65 1,763 7,068 6,661 5,314 4,119 5,974
Sales 1,698 1,625 1,633 1,847 1,964 1,945 1,739 1,885 1,885 7,388 7,095 5,198 3,860 6,750
Gross profit 305 303 298 306 340 344 307 318 337 1,288 1,315 1,136 645 1,366
% margin 18.0 18.6 18.3 16.6 17.3 17.7 17.6 16.8 17.9 17.4 18.5 21.9 16.7 20.2
EBITDA rep. 43 29 -35 18 33 44 14 37 62 60 217 238 -68 601
% margin 2.5 1.8 -2.1 1.0 1.7 2.3 0.8 1.9 3.3 0.8 3.1 4.6 -1.8 8.9
EBIT 17 2 -89 -9 -24 18 -18 8 36 -105 111 152 -178 533
Financial result -19 -19 -14 -22 -18 -25 -21 -22 -21 -80 -84 -67 -62 -70
Income before taxes -2 -16 -103 -31 -42 -8 -39 -15 15 -185 27 84 -240 463
Income taxes -2 1 -19 3 3 -4 12 3 -9 -18 -17 -4 54 -79
Net income -4 -16 -123 -29 -39 -12 -27 -12 5 -203 10 80 -186 384
Minority interests 0 0 -1 -1 0 1 -1 -1 0 -3 -1 3 3 -14
Net income KlöCo -4 -16 -122 -28 -39 -11 -27 -11 5 -200 12 78 -188 398
EPS basic (€) -0.04 -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 -2.00 0.14 1.17 -3.61 8.56
EPS diluted (€) -0.04 -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.11 0.07 -2.00 0.14 1.17 -3.61 8.11
*) Restated due to initial application of IAS19 revised 2011.
Comments
Balance sheet as of June 30, 201305
34
(€m) June 30, 2013 December 31, 2012*
Non-current assets 1,069 1,107
Inventories 1,198 1,254
Trade receivables 960 787
Cash & Cash equivalents 570 610
Other assets 100 122
Total assets 3,897 3,880
Equity 1,514 1,502
Total non-current liabilities 1,251 1,384
thereof financial liabilities 825 914
Total current liabilities 1,132 994
thereof trade payables 702 634
Total equity and liabilities 3,897 3,880
Net working capital 1,456 1,407
Net financial debt 489 422
Shareholders’ equity:
• Remains stable at 38.9%
Financial debt:
• Gearing at 33%
• Gross debt of €1.1bn and cash position of €0.6bn result in a net debt position of €489m
*) Restated due to initial application of IAS19 revised 2011.
Statement of changes in equity05
* As restated for the initial application of IAS 19 rev. 2011
1.634
IAS 19R
13
Net Income
-16
Equity as of December 31,
2012 (as restated for IAS19)
1,502
Revised equity as of December
31, 2012*
1,634
-132
Equity as of March 31, 2013
1,507
F/X and Hedging Reserves
8• Improvement mainly
due to higher interest
rates
• Net investment hedges
• f/x foreign subsidiaries
35
KCO 6.0 EBITDA impact Q1 and Q2 201305
33
-7
24
-6
-21
43
20
1) Restructuring costs.2) Includes one-off gain of €7m due to release of pension accruals.
Total GP effect: €34m
Price Effect
Volume Effect
EBITDA Q2 2012
OPEX 2) EBITDAQ2 2013
KCO 6.0 Fix-cost effect
KCO 6.0 GP effect
KCO 6.0 EBITDA
expenses€17m
171)
50
36
16
-4
-16
-21
44
29
10
Total GP effect: €41m
Price Effect
Volume Effect
EBITDA Q2 2012
OPEX EBITDAQ2 2013
KCO 6.0 Fix-cost effect
KCO 6.0 GP effect
KCO 6.0 EBITDA
expenses€12m
31)
47
Q2 2013Q1 2013
Profit & loss Q2 201305
(€m) Q2 2013 Q2 2012*
Sales 1,698 1,964
Gross profit 305 340
Personnel costs -142 -163
Other operating expenses (net) -120 -144
EBITDA 43 33
Depreciation & Amortization -26 -57
EBIT 17 -24
Financial result -19 -18
EBT -2 -42
Taxes -2 3
Net income -4 -39
Minorities 0 0
Net income attributable to KCO shareholders -4 -39
37
*) Restated due to initial application of IAS19 revised 2011.
Segment performance Q2 201305
38
(€m) Europe Americas HQ/Consol. Total
Turnover (Tto)
Q2 2013 941 749 1,690
Q2 2012 1,097 766 1,863
∆ % -14.3 -2.1 -9.3
Sales
Q2 2013 1,061 637 0 1,698
Q2 2012 1,237 727 0 1,964
∆ % -14.2 -12.3 -13.5
EBITDA
Q2 2013 28 20 -5 43
% margin 2.6 3.2 2.5
Q2 2012* 18 22 -7 33
%margin 1.4 3.0 1.7
∆ % EBITDA 54.2 -6.6 31.7
* Restated due to initial application of IAS19 revised 2011.
Strong Growth: 24 acquisitions since the IPO05
39
Acquisitions1) Acquired sales1),2)
€141m
€567m
€108m
2
4
12
2
2005 2006 2007 2008 2009 2010
4
€231m
€712m
2011
2
€1.15bn
¹ Date of announcement 2 Sales in the year prior to acquisitions
Country Acquired 1) Company Sales (FY)2)
GER Mar 2010 Becker Stahl-Service €600m
CH Jan 2010 Bläsi €32m
2010 4 acquisitions €712m
US Mar 2008 Temtco €226m
UK Jan 2008 Multitubes €5m
2008 2 acquisitions €231m
CH Sep 2007 Lehner & Tonossi €9m
UK Sep 2007 Interpipe €14m
US Sep 2007 ScanSteel €7m
BG Aug 2007 Metalsnab €36m
UK Jun 2007 Westok €26m
US May 2007 Premier Steel €23m
GER Apr 2007 Zweygart €11m
GER Apr 2007 Max Carl €15m
GER Apr 2007 Edelstahlservice €17m
US Apr 2007 Primary Steel €360m
NL Apr 2007 Teuling €14m
F Jan 2007 Tournier €35m
2007 12 acquisitions €567m
2006 4 acquisitions €108m
USA Dec 2010 Lake Steel €50m
USA Sep 2010 Angeles Welding €30m
Brazil May 2011 Frefer €150m
USA April 2011 Macsteel €1bn
2011 2 acquisitions €1,150m
Current shareholder structure05
40
Geographical breakdown of identified institutional investors
Comments
• Identified institutional investors account for 51%
• German investors incl. retail dominate
• Top 10 shareholdings represent around 25%
• Retail shareholders represent 30%
As of July 2013.
Other EU 4%
US 42%
Other World 7%
Switzerland 6%
Germany 24%
France 8%
UK 9%
Appendix05
41
Financial calendar 2013/2014
November 6, 2013 Q3 interim report 2013
March 5, 2014 Annual Financial Statements 2013
May 7, 2014 Q1 interim report 2014
June 6, 2014 Annual General Meeting 2014, Düsseldorf
August 6, 2014 Q2 interim report 2014
November 5, 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: [email protected]
Internet: www.kloeckner.com
Our Symbol
the earsattentive to customer needs
the eyeslooking forward to new developments
the nosesniffing 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