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Berenberg/ Goldman SachsSixth German Corporate Conference
Munich
September 18, 2017
Marcus Ketter | CFO
No.2
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”, “endeavor”, “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.
Valuation statements are unified and are presented as follows:
Sixth German Corporate Conference | Klöckner & Co SE
+/- 0-1%
constant, stable
+/- 1-5%
moderate, slightly
+/- 5-10%
measureably, noticeable, substantial
+/- 10-15%
considerably, dynamic, significant
> +/- 15%
sharp, strong
No.3
1. Overview
2. Klöckner & Co 2020 strategy
3. Q2 2017 – highlights and financials
4. Outlook
5. Appendix
Agenda
Sixth German Corporate Conference | Klöckner & Co SE
No.4
Klöckner & Co SE at a glance01
Sixth German Corporate Conference | Klöckner & Co SE
Klöckner & Co is one of the largest producer-independent
distributors of steel and metal products and one of the leading steel
service center companies worldwide
Products Services
Key figures for 2016
DISTRIBUTION AND SERVICE PORTAL
D I S T R I B U T O R / S E R V I C E C E N T E RP R O D U C E R S
6.1SHIPMENTS
million tons
5.7SALES
€ billion
196EBITDA
€ million
37%
31%
12%
20%
C U S T O M E R S
12Countries
No.5
Everything from one source01
Sixth German Corporate Conference | Klöckner & Co SE
K L Ö C K N E R & C O V A L U E C H A I N
S U P P L I E R S C U S T O M E R S
No.6
Global reach – local presence01
Sixth German Corporate Conference | Klöckner & Co SE
Sales; As of December 2016
WE ASSURE LOCAL
AVAILABILITY FOR OUR
customers
AROUND
170LOCATIONS
12COUNTRIES
• Austria
• Belgium
• Brazil
• Great Britain
• France
• Germany
• Mexico
• Netherlands
• Singapore
• Switzerland
• United Arab
Emirates
• USAUSA:
37%
D:
27%
F/BE:
10%
CH:
16%
NL:
3%UK:
5%
ES*:
2%
Europe:
63%
Brazil:
<1%
* Sold in January 2017
No.7
Steel distribution remains fragmented in Europe and despite much more M&A activity also in the US01
Sixth German Corporate Conference | Klöckner & Co SE
Source: Eurometal, Purchasing Magazine, Service Center News
1%
Reliance
Ryerson
TK
Samuel
O'Neal
Russel
Macsteel
Metals USA
PNA
Namasco
Others
2007 2016
5%
Arcelor Mittal
ThyssenKrupp
KCO
Salzgitter
Tata
Others
Arcelor Mittal
ThyssenKrupp
KCO
Salzgitter
Tata
Others
4%Reliance
Ryerson
KloecknerMetals
ThyssenKrupp
Others
ThyssenKrupp
~1,200
US
Europe
~3,000
Source: Eurometal, Purchasing Magazine, Service Center News
5%
• Position in the US significantly improved whereas market share in Europe remained stable despite heavy
restructuring measures
No.8
Still weak steel demand and high global overcapacities01
Sixth German Corporate Conference | Klöckner & Co SE
Source: Bank of America Merrill Lynch, own estimates; in million tons.NAFTA Steel demand (million to)
EU-28 Steel demand (million to)
Source: Worldsteel
Overcapacity of steel by region (2016)
NAFTA
~30
South-
america
~25
Europe
~90
India
~20
CIS
~30Japan
~20
China
~280
Others:~115
World:~610
No.9
1. Overview
2. Klöckner & Co 2020 strategy
3. Q2 2017 – highlights and financials
4. Outlook
5. Appendix
Agenda
Sixth German Corporate Conference | Klöckner & Co SE
No. 10
The Klöckner & Co 2020 strategy02
Digitalization of the supply chain and development of an open
industry platform
Accelerated expansion of higher value-added products and services
One Europe and further optimization
External growth with focus on higher value-added business,
internal growth with focus on the US market
G R O W T H A N D
O P T I M I Z A T I O N
D I F F E R E N T I A T I O N
D I G I T A L I Z A T I O N
K L Ö C K N E R & C O 2 0 2 0
P R O D U C T S A N D
S E R V I C E S
O P E R A T I O N S
E X T E R N A L A N D
I N T E R N A L G R O W T H
Sixth German Corporate Conference | Klöckner & Co SE
No.11
02Klöckner & Co transforms the linear supply chain into a digital platform business
Sixth German Corporate Conference | Klöckner & Co SE
Linear Supply Chain Digital Platform Business
• No effective Information and data exchange on available
inventory, lead times etc.
• Consequence: Long delivery times, incorrect
deliveries and high inventory levels
• Open infrastructure with frictionless access
No. 12
02 The digital transformation of Klöckner takes place in three essential steps
Increasing number of EDI-connections
Time
Industry platform
• Marketplace for complementary products
• Marketplace for steel and metal products
• Marketplace for additional industrial products
• Regional expansion in Europe and North America
Service portal
Digital tools
• Contract portals
• Onlineshops
• Order transparency tools
• Kloeckner Connect
• Shop-in-shop
• Integration of third-party providers
O P E N
I N D U S T R Y
P L A T F O R M
Suppliers CustomersKlöckner & Co
Value
Customer
side
Supplier
side
Sixth German Corporate Conference | Klöckner & Co SE
No. 13
02 Klöckner industry platform will be positioned as a vertical player
Sixth German Corporate Conference | Klöckner & Co SE
Amazon Business
Alibaba Group
Chemicals/building
materials, etc.Steel and metal
Standard items
• Specialized services
• Laser cutting
• Profiling
• Fabrication
• Surface treatment
Standard
formats
Horizontal platforms
Ve
rtic
al p
latf
orm
s
• Full product
range
and additional
services
• Variable prices
Standard
products
O P E N
I N D U S T R Y
P L A T F O R M
On vertical platforms, established companies like Klöckner can leverage specific industry expertise and longstanding
relationships with suppliers and customers
No. 14
02Digital platforms have become the dominating business model of the 21st
century
Sixth German Corporate Conference | Klöckner & Co SE
► succeed by introducing better offerings
► scale through network effects
► create value by reducing waste and inefficiencies
► move themselves between the producer and the customer
► shift between industries
► extend in a way that traditional supply chains are not
► link existing customers stronger
Platforms ….
No. 15
02Incumbents like Klöckner have several advantages in building a successful industry platform
Sixth German Corporate Conference | Klöckner & Co SE
Reliability and trust Klöckner is since decades trusted by the industry and a reliable partner of its customers
Deep industry
know-howKlöckner knows how to handle the supply chain and understands the expectations of
customers and suppliers
Access to
customers and
suppliers
No chicken-and-egg problem by having a big customer and supplier base
The challenge is to leverage existing assets and capabilities and moving fast at the same time
No. 16
kloeckner.i as digital lab to drive the transformation02
Sixth German Corporate Conference | Klöckner & Co SE
Application of innovative startup methods such as design thinking, lean startup and rapid prototyping
enables accelerated implementation
Founded as a dedicated startup (digital lab) in Berlin in 2014
More than 60 digital experts in Innovation & Product, Software Development, Digital Marketing & Sales
and Business Intelligence & Analytics
Far enough from Klöckner to act independently, yet close enough to leverage expertise as well as access
to customers and suppliers
No.17
Comprehensive rollout of service portal and digital tools by the end of 201702
Sixth German Corporate Conference | Klöckner & Co SE
Contract portal
launched
Order transparency
tools
launched
Onlineshop
Service portal
launched current rollout process
launched current rollout process
current rollout process
current rollout process
No. 18
Expansion of higher margin business to more than 50% already by 201802
>20%higher value-
added products
>30%higher value-
added services
<30%standard products
<20%conventional
services
2 0 1 8 T A R G E T
Expansion from
46% in 2016 to
more than 50%
• Expansion of 3D tube laser centers in the UK and Germany
• Second largest 3D laser center in UK with seven 3D lasers at
2017 year-end
• Third 3D laser in Velten, Germany, put into operation
• Expansion of aluminum business via Becker Stahl-Service
• Slitting line put into operation this quarter
• Start of construction of a complementary cut-to-length line
• Total annual processing capacity of 80,000 tons of aluminum
Sixth German Corporate Conference | Klöckner & Co SE
No. 19
02Further increasing profitability through harmonized European organization
• Realization of additional synergies, especially
in purchasing and logistics
• Intensified best-practice sharing
• Centrally managed implementation of the
Klöckner & Co 2020 strategy
Region 1:
Austria, Belgium, Germany
and the Netherlands
Region 2:
France and UK
2017
2018 €15m
Total annual effect of
around €30 million from
20192019 €5m
€10m
Already realized Outstanding
€5m
Sixth German Corporate Conference | Klöckner & Co SE
No.20
1. Overview
2. Klöckner & Co 2020 strategy
3. Q2 2017 – highlights and financials
4. Outlook
5. Appendix
Agenda
Sixth German Corporate Conference | Klöckner & Co SE
No.21
Highlights Q2 201703
• Sales increased by 8.1% yoy to €1.6bn due to higher price level
• Shipments adjusted for sale of Spanish activities and discontinuation of pipe import business in the US with
-0.6% almost on par with prior year´s level (reported -4.4%)
• Gross profit down from €362m in Q2 2016 to €339m in Q2 2017 due to sale of Spanish activities and price
development in Europe
• Consequently gross profit margin decreased to 20.6% after 23.8% in Q2 2016
• Operating result (EBITDA) for Q2 of €63m in the forecasted guidance range of €60m to €70m and €140m
for H1 2017 after €88m in the prior-year period
• Sales share via digital channels continuously increased from 14% in Q1 2017 to 15% in Q2 2017
• EBITDA forecast of €35m to €45m for the third quarter
• EBITDA increase of more than 10% for the full year over prior year and further improvement in net income
Sixth German Corporate Conference | Klöckner & Co SE
No.22
Significant increase of EBITDA in H1 201703
EBITDA impact: Q2 yoy Comments
72
9
63
Q2 2017Other
effects
-1
OpexOne Europe
/ WIN+
2-16
Volume
effect
-3
Q2 2016
Sixth German Corporate Conference | Klöckner & Co SE
Price
effect
• Q2 results impacted by negative market effects of
-€19m mainly due to price development in Europe
• Negative price effect in Q2 was partly mitigated by
• use of digital pricing tools
• further extension of share of value added
products & services and change of customer
mix by exiting low margin business
• One Europe and KCO WIN+ program with EBITDA
contribution of €2m in Q2 and in total €8m in H1
88
37
140
2
Opex
3
One Europe
/ WIN+
8
YTD June
2017 Actual
Other
effects
Volume
effect
2
YTD June
2016 Actual
Price
effect
EBITDA impact: H1 yoy
No.23
03
Sixth German Corporate Conference | Klöckner & Co SE
• First measures with an EBITDA
contribution of €2m in Q2 and €5m
in H1 2017
• Further centralized procurement
had highest EBITDA impact in
H1 2017
• Further optimizations mainly in the
logistics area through
implementation of cross-border
route planning software
• Well on track to achieve
incremental EBITDA contribution
targets of €10m in 2017 and €30m
until 2019
• Expansion of aluminum business
with total annual processing
capacity of 80,000 tons of
aluminum via Becker Stahl-
Service
• Slitting line put into operation in May
with first sales
• Currently validation phase for OEM
certificates
• Invest in high-growing physical
vapor deposition processing
equipment (color surface-
treatment) in the US
• Sales share via digital channels
increased from 9% in Q1 2016 to
15% in Q2 2017
• Integration of first 3rd party
distributors with complementary
products into online offering
• kloeckner.v with divestment of
stake in digital retail specialist
Contorion
• First successful exit of kloeckner.v
by sale to Hoffmann Group
• >€4m disposal gain after holding
just over one year (=115%)
Digitalization One Europe Higher value-add
Further progress of “Klöckner & Co 2020“ strategy
No.24
Shipments and sales03
• Shipments decreased yoy mainly due to the sale of
Spanish activities and exit from the pipe business in
the US
• Qoq shipments were nearly on par
• Sales increased yoy and qoq due to higher
average sales prices
1,535
Q3
2015
1,636
Q2
2015
1,643
Q1
2016
1,556
Q4
2015
1,450
Q3
2016
Q4
2016
1,5821,572
Q2
2017
Q2
2016
1,500
1,645
1,602
Q4
2016
1,3971,430
Q4
2015
1,386
1,693
Q2
2015
1,597
Q1
2016
1,517
Q2
2016
Q2
2017
1,640
Q3
2016
Q1
2017
Q3
2015
1,456
-4.4%
-0.7%
+8.1%
+2.4%
Shipments (Tto) Sales (€m)
Sixth German Corporate Conference | Klöckner & Co SE
Q1
2017
No.25
Gross profit and EBITDA03
* Before restructuring cost.
63
7172
11
30
37
Q3
2016
Q2
2016
Q1
2016
16
Q4
2015
Q1
2017
77
Q4
2016
Q3
2015
Q2
2015
36
Q2
2017
2.6
5.04.8
1.20.7
1.92.1
3.9
4.8
Q1
2017
Q4
2016
319
Q3
2016
329
Q2
2016
362
Q1
2016
304
Q4
2015
297
Q3
2015
311
Q2
2017
339
Q2
2015
325
367
22.922.823.023.8
22.0
20.4
19.4 20.619.2
• Gross profit down yoy mainly due to sale of Spanish
activities and price development
• Margin down to 20.6%, 3.2%p below Q2 2016 due
to softening price environment
• EBITDA in Q2 down yoy by €9m and qoq by €14m
• Decline less pronounced than gross profit due to lower OPEX
• EBITDA margin in Q2 down by 0.9%p yoy to 3.9%
Gross profit* (€m) / Gross margin* (%) EBITDA* (€m) / EBITDA margin* (%)
Sixth German Corporate Conference | Klöckner & Co SE
No.26
Segment performance Q2 201703
• EBITDA down from €49m to €37m
• Positive volume effect (€3m)
• Negative price effect (-€16m)
• One Europe and KCO WIN+ contributed
€2m to EBITDA improvement
Europe (€m)
Americas (€m)
32
EBITDA
Q2 2017
F/X
1
OPEX
7
Price
effect
0
Volume
effect
-6
EBITDA
Q2 2016
30
37
One Europe
/ Win+
EBITDA
Q2 2017
2
-16
Volume
effect
3
EBITDA
Q2 2016
49
Price
effect
F/X and
other
0
OPEX
-1
• EBITDA up from €30m to €32m
• Negative volume effect (-€6m)
• Only marginal price effect
• OPEX of €7m due to lower personell and
maintenance costs
Sixth German Corporate Conference | Klöckner & Co SE
Comments
No.27
Cash flow and net debt development03
36
• NWC build-up of €45m in Q2 due to higher
inventory (€16m) and trade receivables (€28m) also
due to a higher average price level
• “Other” includes changes in other provisions and
other operating assets/liabilities
• Cash flow from operating activities roughly
balanced (-€2m)
• Free cash flow of -€17m
Comments
• Net financial debt increased due to NWC build-up
partly compensated by f/x (€16m) and settlement of
swaps (€11m) used to hedge intercompany loans
-17-15
63
Taxes
-7
Interest
-6
Change
in NWC
-45
EBITDA
Q2 2017
Free cash
flow Q2
2017
Capex
(net)
Cash
flow from
operating
activities
-2
Other
-7
27
CF from
operating
activities
-2
Net debt
03.2017
475
Net debt
06.2017
486
Other
-1
F/X,
SwapsDividends
-20
Capex (net)
-15
Sixth German Corporate Conference | Klöckner & Co SE
Cash flow reconciliation Q2 2017 (€m)
Net financial debt 06/2017 vs. 03/2017 (€m)
No.28
Maturity profile – well-balanced & diversified funding portfolio 03
Sixth German Corporate Conference | Klöckner & Co SE
Facility Committed (€m)Drawn amount (€m, IFRS*)
Q2 2017 FY 2016
Syndicated Loan 1) 300 0 0
ABS Europe 2) 300 139 115
ABS/ABL USA 482 202 218
Convertible 2016 3) 148 133 131
Bilateral Facilities 4) 311 163 114
Total Debt 1,541 637 578
Cash 151 134
Net Debt 486 444
€m Q2 2017
Adjusted equity 1,164
Net debt 486
Gearing 5)42%
Maturity profile of committed facilities & drawn amounts (€m)
Left side: committed facilities Right side: utilization (nominal amounts)
ABS/ABL USA BilateralsSyndicated Loan ABS Europe
*Including interest accrued, excluding deferred transaction costs.
1) Reduction of total commitments from €360m to €300m and ‘Minimum Equity’ covenant from €800m to
€600m in April 2017.
2) Reduction of ‘Minimum Equity’ covenant from €800m to €600m in May 2017.
3) Principal €148m, equity component €18m at issuance (08.09.2016).
4) Including finance lease.
5) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business
combinations subsequent to May 23, 2013.
300
139 148
300
201
29296
1919
93
241
1
1
15
15 6
631
350
154
315
148
482
306
2017 2018 2019 2020 2021 Thereafter
Convertible Bond
No.29
1. Overview
2. Klöckner & Co 2020 strategy
3. Q2 2017 – highlights and financials
4. Outlook
5. Appendix
Agenda
Sixth German Corporate Conference | Klöckner & Co SE
No.30
Shipbuilding
Segment specific business outlook 201704
Energy
industry
Real steel
demand
Europe
~ 1-2%
Construction
industry
Manufacturing,
machinery and
mechanical
engineering, etc.
Automotive
industry
US
~ 3-4%
Sixth German Corporate Conference | Klöckner & Co SE
No.31
Outlook 04
Q3 2017
• Seasonally lower sales
• EBITDA anticipated to be between €35m and €45m
FY 2017
• Higher sales anticipated due to on average higher price level
• EBITDA up by at least 10% compared to last year (€196m)
Sixth German Corporate Conference | Klöckner & Co SE
No.32
1. Overview
2. Klöckner & Co 2020 strategy
3. Q2 2017 – highlights and financials
4. Outlook
5. Appendix
Agenda
Sixth German Corporate Conference | Klöckner & Co SE
No.33
Quarterly and FY results05
(€m)Q2
2017
Q1
2017
Q4
2016
Q3
2016
Q2
2016
Q1
2016
Q4
2015
Q3
2015
Q2
2015
Q1
2015
Q4
2014*
Q3
2014*
FY
2016
FY
2015
FY
2014
FY
2013
Shipments (Tto) 1,572 1,582 1,450 1,500 1,643 1,556 1,535 1,636 1,645 1,661 1,555 1,690 6,149 6,476 6,598 6,445
Sales 1,640 1,602 1,397 1,430 1,517 1,386 1,456 1,597 1,693 1,697 1,577 1,675 5,730 6,444 6,504 6,378
Gross profit 339 367 319 329 362 304 297 311 320 310 309 325 1,315 1,237 1,261 1,188
% margin 20.6 22.9 22.8 23.0 23.8 22.0 20.4 19.4 18.9 18.2 19.6 19.4 22.9 19.2 19.4 18.6
EBITDA rep. 63 77 37 71 72 16 2 28 -17 10 33 61 196 24 191 124
% margin 3.9 4.8 2.6 5.0 4.8 1.2 0.2 1.8 -1.0 0.6 2.1 3.6 3.4 0.4 2.9 2.0
EBIT 41 54 -4 48 49 -8 -297 5 -44 -15 8 38 85 -350 98 -6
Financial result -8 -8 -10 -8 -7 -8 -12 -12 -13 -12 -13 -14 -33 -49 -59 -73
Income before taxes 33 46 -14 40 42 -16 -309 -7 -56 -27 -4 24 52 -399 39 -79
Income taxes -9 -10 2 -9 -9 2 45 -2 1 6 1 -8 -14 50 -17 -12
Net income 24 36 -12 31 33 -14 -263 -9 -55 -22 -4 16 38 -349 22 -90
Minority interests 1 0 0 0 1 0 -1 0 -1 0 -1 0 -1 -2 0 -6
Net income KlöCo 23 36 -12 31 32 -14 -263 -9 -54 -21 -4 16 37 -347 22 -85
EPS basic (€) 0.23 0.36 -0.13 0.31 0.32 -0.14 -2.63 -0.09 -0.54 -0.22 -0.04 0.16 0.37 -3.48 0.22 -0.85
EPS diluted (€) 0.22 0.34 -0.13 0.31 0.32 -0.14 -2.63 -0.09 -0.54 -0.22 -0.04 0.16 0.37 -3.48 0.22 -0.85
* Restated due to initial application of IFRIC 21.
Sixth German Corporate Conference | Klöckner & Co SE
No.34
Segment performance05
Q2
2017
911
Q1
2017
926
Q4
2016
867
Q3
2016
873
Q2
2016
950
Q1
2016
903
Q4
2015
891
Q3
2015
931
Q2
2015
970
Q4
2015
919
Q3
2015
986
1,054
985
Q4
2016
883
Q1
2017
Q1
2016
963
Q2
2016
891
Q3
2016
Q2
2015
870
Q2
2017
1,019 49
1112
21
29
Q1
2016
Q4
2015
36
Q3
2016
55
Q2
2016
37
Q1
2017
54
Q4
2016
Q2
2017
Q3
2015
Q2
2015
Q4
2016
583
Q3
2016
627
Q4
2015
Q3
2015
705
Q2
2015
657
Q1
2017
660
Q2
2017
Q1
2016
652644
Q2
2016
693675
Q2
2015
639
539
Q2
2016
554
Q1
2016
617
Q4
2016
515
Q3
2016
611
Q2
2017
621
Q1
2017
516
Q4
2015
537
Q3
2015
30
11
30
11
14
Q1
2016
Q4
2015
3
Q3
2015
Q2
2015
Q4
2016
Q3
2016
22
Q2
2016
Q2
2017
32
Q1
2017
13
-4.1%
-4.7%
+5.9%
+12.0%
Euro
pe
Am
ericas
Restructuring costs (€m)* Q2 2015 Q3 2015 Q4 2015
Europe 52 2 2
Americas 2
Shipments (Tto) Sales (€m) EBITDA before restructuring (€m)
Shipments (Tto) Sales (€m) EBITDA before restructuring (€m)
* €4m are reported in HQ in Q4 2015.
Sixth German Corporate Conference | Klöckner & Co SE
No.35
Strong balance sheet05
• Equity ratio further healthy at 39%
• Net debt of €486m
• Gearing* at 42%
• NWC increased from €1,120m to €1,306m
* Gearing = Net debt/Equity attributable to shareholders of
Klöckner & Co SE less goodwill from business
combinations subsequent to May 23, 2013.
Comments
Assets Equity & liabilities
39% 39%
654 857
897849
134 151206
Other current assets
Trade receivables
Inventories
Non-current assets
June 30, 2017
3,084
108
1,119
Dec. 31, 2016
2,897
1,006
Liquidity
540 670
359309
282279
571
Other liabilities
Trade payables
Pensions
Financial liabilities
Equity
June 30, 2017
3,084
631
1,192
Dec. 31, 2016
2,897
1,148
40%39%
Sixth German Corporate Conference | Klöckner & Co SE
No.36
Sales by markets, products and industries05
As of December 31, 2016.
Sales by industry
Sales by product
Sales by markets
5%UK
10%France/Belgium
16%Switzerland
27%Germany
37%USA
3%Netherlands
2%Spain
5%Tubes
8%Aluminum
9%Quality steel/
Stainless steel
22%Long products
44%Flat products
12%Others
12%Automotive
industry
7%Miscellaneous6%
Local dealers
31%Machinery/mechanical
engineering
37%Construction
industry
7%Household appl./Consumer goods
Sixth German Corporate Conference | Klöckner & Co SE
No.37
Current shareholder structure05
Geographical breakdown of identified
institutional investors• Identified institutional investors account for 71%
• German investors incl. retail dominate
• Top 10 shareholdings represent around 52%
• Retail shareholders represent 22%
Comments
As of July 2017.
6% Rest of EU
30% US
3% Rest of world
2% Switzerland
5% UK
53% Germany
Sixth German Corporate Conference | Klöckner & Co SE
1% France
No.38
Current shareholder structure05
Voting Rights Announcements according to WpHG (Security Trading Act)*
*) The table lists all shareholders, whose Klöckner & Co SE voting shares exceed one of the notification thresholds under section 21 clause 1 WpHG, based on notification as of September 13, 2017.
Subject to compulsory notification Portion of voting
stock
Date of publication
Federated Global Investment Management Corp. 3.01% 22/08/2017
Swoctem GmbH / Friedhelm Loh 25.25% 09/02/2016
Franklin Mutual Series Funds 3.07% 04/03/2015
Franklin Mutual Advisors 5.35% 18/03/2014
Dimensional Holdings Inc. /
Dimensional Fund Advisors LP
3.06% 02/02/2012
Sixth German Corporate Conference | Klöckner & Co SE
No.39
Acquis
itio
nstr
ate
gy
suspended
Acquis
itio
nstr
ate
gy
suspended
2005 2006 2007 2008 2009 2010 2011 2012
2013
2014 2015
2 221 1
44
12
141
108
567
231
712
1,150
140
22
Strong Growth: 26 acquisitions since the IPO05
¹ Date of announcement 2 Sales in the year prior to acquisitions 3 The transaction is still subject to normal closing conditions
but has already been approved, with a different transaction structure, by the Swiss Competition Commission.
Country Acquired 1) Company Sales (FY)2)
GER Mar 2010 Becker Stahl-Service €600m
CH Jan 2010 Bläsi €32m
US Mar 2008 Temtco €226m
UK Jan 2008 Multitubes €5m
2008 2 acquisitions €231m
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
2010 4 acquisitions €712m
2014 1 acquisition €140m
CH 2nd quarter 20143) Riedo €140m
2011 2 acquisitions €1,150m
USA Oct. 2015 American Fabricators €22m
2015 1 acquisition €22m
Acquired sales in €m 1,2
Acquisitions 1
Sixth German Corporate Conference | Klöckner & Co SE
No. 40
Initiatives and tools support the cultural change required for digital transformation05
Digital enabling of employees through online courses
during working hours; the courses are developed
specifically to suit Klöckner’s needs
Non-hierarchical communication solves the problem of
interruptions in horizontal and vertical communication
Many additional initiatives in the holding company and in
the country organizations to engage employees
Sixth German Corporate Conference | Klöckner & Co SE
No.41
Service Portal and Onlineshop for spot buyers05
• Service portal Kloeckner Connect:
• Central access point for customers to Onlineshop,
contract portal and various digital tools
• Onlineshop:
• Offers full price and delivery time transparency
– even for customers without registration
• Integration into ERP systems of customers via
OCI interfaces
• Open for 3rd party sellers/distributors in 2017
• Possibility of payment via credit card
• Third party interface via webservice API (REST)
Sixth German Corporate Conference | Klöckner & Co SE
No.42
Contract Portal for customers with continious demand05
• Efficient digital contract management for customers
• Clearly structured overview of prices, volumes and
maturity dates
• Order-Release 24/7 by mouse click via PC or tablet
• Option to contact Klöckner & Co sales agent for
new contract negotiations
• Fully integrated into service portal Kloeckner
Connect
• OCI interface to ERP systems of customers
• Reduced workload for internal sales force
• Digital management of customer activities including
the option to set notes
• More efficient process execution
• Integrated into third party platform Axoom
Sixth German Corporate Conference | Klöckner & Co SE
No.43
Order Transparency Tool supports order and document management05
• Intuitive customer friendly interface
• Order management
• Clearly structured overview of all orders
• One list for better clarity and information
• Displays specific details including the delivery
status of each line item
• Whole order history accessible
• Document management
• Instant access to important order and product
documents
• Option to download the delivery note, shipping
note and invoice of each order
• Access to the mill certificate corresponding to a
line item
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No.44
Connection of Klöckner & Co platform to Internet of Things05
• Participation in AXOOM order and resource
management software project initiated by
TRUMPF
• High digital competence enables Klöckner & Co
to participate in the project as steel supplier
from the very beginning
• Klöckner & Co Contract portal already
integrated into the AXOOM interface
• Final solution allows fully automated demand
recognition, order and delivery process – the
machine orders at Klöckner & Co
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No.45
05 Artificial Intelligence supports Klöckner & Co’s digital strategy
• Innovation partnership with Arago focused on
leveraging artificial intelligence (AI) to further
drive digital transformation
• Implementing problem-solving AI platform
HIRO into Klöckner & Co’s IT environment
• By amplifying human IT knowledge through
continuous learning and built-in self-
optimization HIRO will automate IT operations
• HIRO platform will initially be implemented in
two US-based data centers of Kloeckner
Metals Corporation (KMC)
• KMC will serve as a blueprint on deploying
Arago’s AI for Klöckner & Co globally
Sixth German Corporate Conference | Klöckner & Co SE
No.46
05
Sixth German Corporate Conference | Klöckner & Co SE
Impact of new administration on our US business
• Announced investments in infrastructure and
military
• Lower unemployment rate and tax reduction
lead to higher private consumption and to an
increasing GDP
• Consulting team of administration with steel
background
• Positive atmosphere and high investment
propensity in the US economy
Positive impact on steel demand
locallocal
From USA
~ 93%
Imports ~ 7%*
We buy and sell local –
and are seen as a US company
• Anti dumping measures forced but no impact on
KCO due to local sourcing and selling
• Planned import stop will
• strengthen the local steel companies as we are
seen in the US
• cause steel prices to increase within the US
*KCO, Jan- Mar 2017.
No.47
Products 05
Flat Products Hollow Sections
Long Products
Stainless /
Aluminium
Coils
Sixth German Corporate Conference | Klöckner & Co SE
No.48
3D-Laser
Services05
Decoiling / Cutting / Slitting Cutting to Length / Bending Surface treatment
Laser cutting / Flame cutting 3D-Laser3D-Laser
Sixth German Corporate Conference | Klöckner & Co SE
Financial calendar
Christina Kolbeck
Head of Investor Relations & Sustainability
Phone: +49 203 307 2122
Fax: +49 203 307 5025
Email: [email protected]
Internet: www.kloeckner.com
September 29, 2017 Capital Markets Day,
Frankfurt am Main, Germany
October 25, 2017 Q3 interim statement 2017
February 28, 2018 Annual financial statements 2017
April 25, 2018 Q1 interim statement 2018
May 16, 2018 Annual General Meeting
Contact details