Klöckner & Co SE

A Leading Multi Metal Distributor

FY 2013 Results

Analysts’ and Investors’ Conference

CEO

Gisbert Rühl

March 6, 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 and update on strategy 01

Financials

Outlook

Appendix

02

03

04

Agenda

4

Improved results despite overall weaker markets due to self-help measures

• Steel markets once again with disappointing development in 2013; steel distribution market

declined by 7% in Europe and was only stable in the US

• Turnover decreased by 8.8% to 6.4m To also due to restructuring measures (-4.4%p) and

further reduction of commodity business

• Sales additionally impacted by lower price level down by 13.7% to €6.4bn

• Gross profit before restructuring costs declined significantly less than sales by 8.0%. Gross

profit margin consequently improved by 1.2%p to 18.7%

• Improvement of EBITDA before restructuring from €137m to €150m includes €11m due to sale

of property in France in Q4

• FCF generation of €107m mainly as a result of strict NWC-management. Net debt consequently

down from €422m at the end of 2012 to €325m

• Restructuring program KCO 6.0 finalized

• Implementation of KCO WIN measures on track

• Acquisition of Riedo supports strategy to increase processing

01

5

Negative market impact again overcompensated in Q4 01

-23

KCO 6.0 EBITDA-impact

• In Q4 measures contributed additional

€18m to EBITDA against prior year,

FY €61m

• Cost cuts achieved trough KCO 6.0

amounted to €24m in Q4, FY €84m

• Negative volume and price effects of

€9m in Q4 overcompensated by €18m

positive KCO 6.0 effects

• Negative volume and price effects

FY of €78m for the most part

compensated by €61m positive

KCO 6.0 effects

Comments Q4

6

FY Market related GP effect: -€9m

Restructuring

charges

Net KCO 6.0 effect:

€18m

22

-35

24

EBITDA

Q4 2013

40

16

OPEX

9

Restr.

costs

-57

EBITDA

bef. restr.

Q4 2012

KCO

6.0 Cost

Effect

24

Price

Effect

33

Volume

Effect

KCO 6.0

GP Effect

-6 -3

EBITDA

Q4 2012

-6

137

60

34

-23

124

47

26

EBITDA

FY 2012

-45

Volume

Effect

-33

Price

Effect

KCO 6.0

GP Effect

84

KCO

6.0 Cost

Effect

81

OPEX

150

EBITDA

FY 2013

EBITDA

bef. restr.

FY 2012

Restr.

Costs

-77

€4m

Market related GP effect: -€78m

Net KCO 6.0 effect:

€61m

42

Restructuring program KCO 6.0 fully implemented 01

Measures

• Total headcount reduction of >2,200 ~ 1/5 of total workforce

• Total site closures 70 ~1/4 of total sites

• Total cost reduction of €174m (€131m realized)

• Total annual EBITDA-impact of ~€150m (€112m realized)

• Reduction of NWC by €133m (€106m realized)*

* More customers retained than expected

2013

2014

€51m

already realized

€61m

€41m

Total annual EBITDA-impact of ~€150m

2011-2012

7

~

~

Additional improvement potential through KCO WIN 01

Measures

• Effective sales force management (structured sales-approach, advanced customer segmentation, specific target

setting, cross-selling, tracking, incentive-schemes, regular performance reviews)

• Improved pricing (price guidance, avoid leakage, systematic review)

• Effective sourcing and logistics (bundling, bonus schemes)

8

2014

2015 €30m

Total annual EBITDA-impact of ~€50m

€20m

Further implementation of “Klöckner & Co 2020” strategy currently focused on

operational improvements through KCO WIN and differentiation 01

9

Enabling

activities

Differentiation

Growth and

optimization

• External growth with focus on higher value-added processing

• Internal growth with focus on US market

• Focus on KCO WIN

Broad

product range

Higher value-

added processing

Advanced tools &

systems

External &

internal growth

Operations

Management &

personnel

development

Controlling &

IT systems

• Providing a broad range of steel and metal products through

widespread network structure and not only from a single site

• Expansion of higher value-added processing business like 3d tube laser

and flat bed laser etc.

• Pushing forward innovations and extension of our services

• Strengthen the understanding, contribution and achievement of individual

performance to support the business model

• Identify, develop & retain potentials to ensure growth and sustainability within

our business

• Global collaboration and state-of-the-art controlling, accounting and treasury

systems

Acquisition of Riedo supports strategy to increase processing 01

10

Oberbipp Eschlikon

Heimberg

Switzerland

• Riedo is a leading processor of reinforcement steel in

Switzerland

• Sales of €140m in 2013

• Highly profitable: EBITDA-margin even higher than Becker

Stahl-Service

• ~180 employees in three state of the art sites

• Extensive value added product offering with highly automated

rebar processing and on-site delivery

• Main customer segment: stable growing Swiss construction

industry

• Acquisition highly accretive

• Purchase price of 5.6x EV/EBITDA before and 3.9x after

higher single-digit million € synergies

• Taking into account that necessary low- to mid-double digit

investments for upgrading and consolidating existing sites

could be avoided by closing the respective sites and

transferring the business to Riedo sites, multiple will be at 3.0x

EV/EBITDA

• Acquisition will immediately be earnings accretive, also

because no meaningful integration charges are expected

• Riedo will be most likely consolidated in the beginning of the

2nd quarter 2014

Riedo as perfect strategic fit to Swiss subsidiary Debrunner Acifer 01

11

• Riedo is a perfect complementary fit

• Extension of geographical reach, customer coverage and

products

• Strengthening leading market position of KCO for

reinforcement steel and systems in Switzerland

• Consolidation/closure of two Debrunner Acifer sites

• Outlook for construction in Switzerland remains

positive

• The construction market is expected to show a steady

growth 2014-2019 with a CAGR of 1.4%*

• Civil engineering is expected to outgrow building

construction (CAGR 2012-2019 of 2.2% vs. 1.2%)*

• Main drivers for further growth are

• Further solid economic and population growth

• Ongoing urbanization/mobility mega trend requiring

new infrastructure

• Increase of public investments in both building and civil

engineering sector (e.g. new hospitals, schools, etc.)

• No/low public debt levels

• Low interest rates

Debrunner Acifer

Riedo

Switzerland

Sites to be consolidated * Source: BAKBASEL.

Klöckner & Co SE

A Leading Multi Metal Distributor

Financials CFO

Marcus A. Ketter

Highlights and update on strategy 01

Financials

Outlook

Appendix

02

03

04

Agenda

13

1,739

1,945 1,964 1,847

1,633 1,625 1,698 1,600

1,455

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

1,636

1,857 1,863 1,764

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

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Turnover and sales 02

Sales (€m) Turnover (Tto)

• FY: 6,445 Tto vs. 7,068 Tto (-8.8%)

• qoq decline reflecting seasonal slowdown and

restructuring measures

• FY: €6,378m vs. €7,388m (-13.7%)

• Average prices per ton further decreased into Q4

but started to turn

-5.8%

-7.7%

-10.9%

-9.0%

14

EBITDA* (€m) / EBITDA-margin* (%)

Gross profit and EBITDA 02

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

• FY 2013 €1,192m (GM: 18.7%) vs. FY 2012 €1,295m

(GM: 17.5%)

• Gross profit margin already significantly improved

• FY 2013 €150m (EBITDA-margin 2.4%)

vs. FY 2012 €137m (EBITDA-margin 1.8%)

* Before restructuring costs

15

307

344 344

306 302 303 305 296 288

17.6 17.7

17.5

16.6

18.5 18.6

18.0

18.5

19.8

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

+>1%p 24

47 50

18

22

29

43

39 40

1.3

2.4 2.5

1.0

1.3

1.8

2.5 2.4

2.7

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

18.7 FY

17.5 FY

XX

15

Q2 yoy

-8

Q1 yoy

-18

EBITDA

2012 before

restructuring

137

EBITDA

2013 before

restructuring

150

Q4 yoy

18

12

6

Q3 yoy

21

6

Turnaround started in Q3 02

16

• EUR -€8m

• AMX -€8m

• HQ -€2m

• EUR -€15m

• AMX -€2m

• HQ +€2m

One-off

• Pensions ODS

+€7m

• EUR +€7m

• AMX +€8m

One-off

• Pensions

ODS +€6m

• EUR +€6m

• AMX -€3m

• HQ +€3m

One-offs

• Pensions ODS

+€1m

• Gain

La Courneuve

+€11m

7

[thereof f/x effects -€3.2m]

-€15m

one-time effects

(€m)

IDA restruct.

-21

EBITDA

reported

124

OPEX

restruct.

IDA*

-182

-79

EBT One-offs

1,188 25 -22

OPEX

-1,067

Gross profit

-4

EBT effect: €-22m

EBT impacted by restructuring and material one-offs 02

17

• Pensions

ODS

+€14m

• Gain on sale

La

Courneuve

+€11m

• Personnel

cost -€ 15m

• Other -€ 7m

• Impairments

-€24m

• Reversal

Frefer Put

Liability

+€3m

*IDA = Interest, depreciation and amortization

(€m) S Restructuring costs: €-47m

S Material one-offs: €+25m

Cash flow and net debt development 02

Cash flow reconciliation in FY 2013 (€m)

• NWC releases boosted free cash

flow

• Net Capex of €36m (net of cash-in of

divestments of €21m)

• “Other” include changes in other

operating assets and liabilities and

non-cash items

Comments

36

Development of net financial debt FY 2013 (€m)

18

107143

163

124

Change

in NWC

-52

Interest EBITDA

2013

-17

Other Cash out

for

Restruct.

Provisions

-36

La

Courneuve

and

Pensions

NL

-25 -26

Cash

flow from

operating

activities

Capex

(net)

-24

Free

cash flow

2013

Taxes

325

Other

-10

Dec 31, 2013

CF from

operating

activities

-36

Capex (net)

143

Dec 31, 2012

422

• Net debt significantly down from

€422m at the end of 2012 to €325m

• Main driver: strong free cash flow

(€107m) resulting from NWC

release

• “Other” include fx (€3m) and

interest (€-9m)

• Equity ratio further solid at 40%

• Net debt of €325m

• Gearing** at 23%

• NWC decreased from €1,407m to €1,216m yoy

* As restated for the initial application of IAS 19 rev. 2011.

Strong balance sheet 02

** Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 23, 2013.

Comments

19

Assets

610 595

787 687

Liquidity

Other current assets

Trade receivables

Inventories

Non-current assets

Dec 31, 2013

3,595

170

1,166

977

Dec 31, 2012*

3,880

122

1,254

1,107

634 637

252250110 184

727914

Current financial liabilities

Trade payables

Non-current financial liabilities

Equity

Dec 31, 2013

3,595

1,445

Dec 31, 2012*

3,880

1,502

Other non-current liabilities 470

Other current liabilities

350

Equity & liabilities

39% 40%

Klöckner & Co SE

A Leading Multi Metal Distributor

Outlook CEO

Gisbert Rühl

General and segment specific business outlook 03

GDP

Construction industry

Automotive industry

Apparent steel demand

Machinery and mechanical

engineering

Europe USA

+1-2% +2-3%

+1-2% +3-4%

21

Outlook

• Q1 2014

• Turnover to be sequentially up in Q1

• EBITDA in Q1 expected to come in between €40-50m

• FY 2014

• Turnover and sales to be slightly up; decline through restructuring measures expected to be

overcompensated by volume growth in remaining sites

• EBITDA to be significantly up compared to last year`s figure before restructuring driven by

€41m KCO 6.0 and €20m KCO WIN contribution

• Positive net income expected

• Return to dividend payment intended for fiscal year 2014

03

22

Highlights and update on strategy 01

Financials

Outlook

Appendix

02

03

04

Agenda

23

Quarterly results and FY results 2009-2013 04

24

(€m) Q4

2013

Q3

2013

Q2

2013

Q1

2013

Q4

2012* Q3

2012*

Q2

2012*

Q1

2012*

Q4

2011

FY

2013

FY

2012*

FY

2011

FY

2010

Turnover (Tto) 1,492 1,617 1,690 1,646 1,585 1,764 1,863 1,857 1,636 6,445 7,068 6,661 5,314

Sales 1,455 1,600 1,698 1,625 1,633 1,847 1,964 1,945 1,739 6,378 7,388 7,095 5,198

Gross profit 284 296 305 303 298 306 340 344 307 1,188 1,288 1,315 1,136

% margin 19.5 18.5 18.0 18.6 18.3 16.6 17.3 17.7 17.6 18.6 17.4 18.5 21.9

EBITDA 16 36 43 29 -35 18 33 44 14 124 60 217 238

% margin 1.1 2.3 2.5 1.8 -2.2 1.0 1.7 2.3 0.8 2.0 0.8 3.1 4.6

EBIT -36 10 17 2 -89 -9 -24 18 -18 -6 -105 111 152

Financial result -17 -19 -19 -18 -14 -22 -18 -25 -21 -73 -80 -84 -67

Income before taxes -52 -8 -2 -16 -103 -31 -42 -8 -39 -79 -185 27 84

Income taxes -7 -3 -2 1 -19 3 3 -4 12 -12 -18 -17 -4

Net income -59 -11 -4 -16 -123 -29 -39 -12 -27 -90 -203 10 80

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

Net income KlöCo -54 -11 -4 -16 -122 -28 -39 -11 -27 -85 -200 12 78

EPS basic (€) -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.85 -2.00 0.14 1.17

EPS diluted (€) -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.39 -0.11 -0.27 -0.85 -2.00 0.14 1.17

* Restated due to initial application IAS 19 revised 2011.

602

722 727 698

592 608 637

594

520

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

646

752

766

746

677

716

749

714

653

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

1,137 1,223 1,237

1,149

1,041 1,017 1,061

1,006 935

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

990

1,105 1,097 1,018

908 930 941 903

839

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Both regions recovering from their profitability lows 04 E

uro

pe

A

mericas

-7.5%

-3.6% -12.2%

-10.1%

25

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

Turnover (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.

22 22

35

12

16 14

28** 26**

34**

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

13

29

22

12

16

21 20 20

13

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Segment performance Q4 2013 04

26

(€m) Europe Americas HQ/Consol. Total

Turnover (Tto)

Q4 2013 839 653 1,492

Q4 2012 908 677 1,585

Δ % -7.5 -3.6 -5.8

Sales

Q4 2013 935 520 1,455

Q4 2012 1,041 592 1,633

Δ % -10.1 -12.2 -10.9

EBITDA

Q4 2013 22 2 -8 16

% margin 2.4 0.4 1.1

Q4 2012 -38 15 -12 -35

% margin -3.7 2.6 -2.2

Δ % EBITDA 156.6 -87.0 145.7

Balanced maturity profile December 2013 04

27

Maturity profile of committed facilities and drawn

amounts (€m)

€m Facility Committed Drawn amount

Q4 2013* FY 2012*

Bilateral Facilities 1) 536 62 98

Other Bonds 0 0 9

ABS 560 191 161

Syndicated Loan 360 161 161

Promissory Note 2) 235 238 348

Total Senior Debt 1,691 652 777

Convertible 2009 3) 98 98 92

Convertible 2010 3) 186 171 164

Total Debt 1,975 921 1,033

Cash 595 611

Net Debt 325 422

€m Q4 2013

Adjusted equity 1,430

Net debt 325

Gearing 4) 23%

*Including interest

1) Including finance lease

2) Redemption of €108m of promissory notes, of which €34m early redemption in Q4 2013

3) Drawn amount excludes equity component

4) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations

subsequent to May 23, 2013

5) Incl. Swiss facilities of €184m which are automatically renewed on a yearly basis Left side: committed facilities Right side: drawn amounts

50 50

52 52

133

228 49

9898142

200

48 236

44

9

8

8

10

31

2015

287

179

2014

376 349

160

2016

864

133

360

360

11

248

Thereafter

151

2017

444

Syndicated loan Promissory notes ABS Bilaterals

5)

US ABL

186 186 186

Convertibles

Comments

Balance sheet as of December 31, 2013 04

28

(€m) December 31, 2013 December 31, 2012*

Non-current assets 977 1,107

Inventories 1,166 1,254

Trade receivables 687 787

Other assets 170 122

Cash & Cash equivalents 595 610

Total assets 3,595 3,880

Equity 1,445 1,502

Total non-current

liabilities 1,077 1,384

thereof financial liabilities 727 914

Total current liabilities 1,073 994

thereof trade payables 637 634

Total equity and

liabilities 3,595 3,880

Net working capital 1,216 1,407

Net financial debt 325 422

Shareholders’ equity:

• Healthy at 40%

Financial debt:

• Gearing at 23%

• Gross debt of €0.9bn and

cash position of €0.6bn

result in a net debt position

of €325m

* As restated for the initial application of IAS19 revised 2011.

Profit & loss 2013 04

(€m) FY 2013 FY 2012

Sales 6,378 7,388

Gross profit 1,188 1,288

Personnel costs -579 -659

Other operating expenses (net) -485 -569

EBITDA 124 60

Depreciation & Amortization -130 -165

EBIT -6 -105

Financial result -73 -80

EBT -79 -185

Taxes -12 -18

Net income -90 -203

Minorities -5 -3

Net income attributable to KCO shareholders -85 -200

29

Sales by markets, products and industries 04

30

As of December 31, 2013

Current shareholder structure 04

31

Geographical breakdown of identified

institutional investors

Comments

• Identified institutional investors

account for 53%

• German investors incl. retail

dominate

• Top 10 shareholdings represent

around 26%

• Retail shareholders represent 27%

As of January 2014

Appendix 04

32

Financial calendar 2014

May 8, 2014 Q1 interim report 2014

May 23, 2014 Annual General Meeting 2014, Düsseldorf

August 7, 2014 Q2 interim report 2014

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