klöckner & co - q1 2011 results

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Klöckner & Co SE Klöckner & Co SE A Leading Multi Metal Distributor Q1 2011 results Gisbert Rühl CEO/CFO Analysts’ and Investors’ Conference Call CEO/CFO May 11, 2011

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Analysts' and Investors' Conference Call May 11, 2011

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Page 1: Klöckner & Co - Q1 2011 Results

Klöckner & Co SEKlöckner & Co SEA Leading Multi Metal Distributor

Q1 2011 resultsGisbert RühlCEO/CFO Analysts’ and Investors’ Conference CallCEO/CFO

May 11, 2011

Page 2: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel00 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 datasubstitute 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

Page 3: Klöckner & Co - Q1 2011 Results

Agenda

01 Financials and performance Q1 2011

02 Outlook

03 Update on Klöckner & Co 2020

04 Appendix

3

Page 4: Klöckner & Co - Q1 2011 Results

01 Highlights Q1 and beyond

• EBITDA-margin of 6.6% above group target of 6%

• Acquisition of Macsteel completed: # 3 multi metal distributor and SSC in North America

• Entry into Emerging Markets fulfilled with acquisition of Frefer Group in Brazil

• Acquired annual sales ~€1.4bn with Macsteel and Frefer*

• 8-10 million tons sales volumes target could be achieved as early as 2012

• Equity needed for future growth: Capital increase planned for summer

* On 2011 forecast

4

Page 5: Klöckner & Co - Q1 2011 Results

01 Financials Q1 2011

SalesSales volumes

€1,587m+51.3%

1 180 Tt

+26.9%1,498 Tto

€1,049m

Q1 2011Q1 2010

1,180 Tto

Q1 2010 Q1 2011

EBITDAGross profit

€353m+49.9%

€29m€104m+259.3%

Q1 2011Q1 2010

€236m

Q1 2011Q1 2010

5

Page 6: Klöckner & Co - Q1 2011 Results

01 Sales volumes and sales

Sales (€m)Sales volumes (Tto)

1,4481 368

1,4981,587

1,033966

1,180

1,368 1,318

934 873

1,049

1,416 1,4011,332

,

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

6

Page 7: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel01 Gross profit and EBITDA

Gross profit (€m)/ Gross-margin EBITDA (€m)/ EBITDA-margin

331353

0

2

4

6

8

10

12

Reihe1

100 104

9.5%

1.2% 2.8%7.1% 4.3% 3.6%

6.6%22.3% 22.6% 22.5%23.4%

21.0% 20.6%

22.3%

331 353

208 198236

294275

0

1 2 3 4 5 6 7

83

61

48

11

29

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

7

Page 8: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel01 Net income and earnings per share

EPS basic (€)Net income (€m)

4744 0.69 0 65

1215 17

0.56

0.21 0.25

0.65

2

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

0.02

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

-23-0.42

8

Page 9: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel01 Strong volume and sales development required higher NWC

Development of net financial debt in Q1 (€m)Cash flow generation in Q1 (€m)

-167104T Oth

CF fromoperating

ti iti C Free CF

CF fromoperatingactivities

Capex Other*

Q4 Q1

-69 -74EBITDA

Change in

Taxes Other activities Capex Free CF

-7 1 -5-137

-227

Change inNWC

-69

-5 -16

* exchange rate effects, interest

9

Page 10: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel01 Segment performance

Volumes (Tto) Sales (€m) EBITDA (€m)143

1,162 1 084 1,164 1,180 1,169 1 1041,290

Eur

ope

25

93

6045

81784 730909

, 1,084 1,029,

775 730858

1,104

** * * * * ** *

4

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Volumes (Tto) Sales (€m) EBITDA (€m)

eric

a

271 286 284 289334

236 232 228

297

Nor

th A

me 249 236

271

159 143191

236 232 228

103

913

5 7

30

N

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

10

* consolidation of BSS as of March 1, 2010

Page 11: Klöckner & Co - Q1 2011 Results

01 Strong balance sheet

Q1 2011 (€m) Comments

807

€3,780m

Non-currentassets

• Equity ratio of 34.9%

• Net debt €227m

1,043

1,318assets

Inventories

Equity • Gearing* at 18%

• NWC increased by €146m to €1,163m qoq

9251,407

Trade receivables

Non-currentliabilities

925

77

Trade receivables

Othercurrent assets

Current928

1,055Liquidity

Current liabilities

* Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business

11

gcombinations subsequent to May 28, 2010

Page 12: Klöckner & Co - Q1 2011 Results

01 Strict NWC management shows effect with NWC/ sales constantly below 20%

Sales/ NWC as percentage of sales30%2,500 30%

25%2,000

2,500

22%20% 21%

23% 23% 22%21% 21%

24%25%

23%

20% 19% 18% 19% 19% 19% 19%

25%

15%

1,500 18%

0% 19% 18% 19% 19% 19% 19%

15%

20%

10%

500

1,00010%

0%

5%

0

500

1,39

4

1,39

8

1,55

0

1,65

0

1,58

3

1,49

2

1,66

0

1,92

2

1,77

3

1,39

4

1,09

5

959

934

873

1,04

9

1,41

6

1,40

1

1,33

2

1,58

7

0Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

0%

5%

0%Q32006

Q42006

Q12007

Q22007

Q32007

Q4 2007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q4 2009

Q1 2010

Q22010

Q32010

Q42010

Q12011

Sales in €m NWC as % of sales (4x quarterly sales)

12

Page 13: Klöckner & Co - Q1 2011 Results

Agenda

01 Financials and performance Q1 2011

02 Outlook

03 Update on Klöckner & Co 2020

04 Appendix

13

Page 14: Klöckner & Co - Q1 2011 Results

02 Development of GDP and apparent steel consumption supportive

GDP2010: +2.8%2011: +2.8%

GDP2010: +10.3%2011: +9.6%

2012: +2.9%ASU*2010: 110.3Mto2011: +10.9%2012: +6 3%

2012: +9.5%ASU*2010: 576.0Mto2011: +5.0%2012: +5.0%2012: +6.3%

GDPGDP2010: +1.7%2011 +1 6%2010: +7.5%

2011: +4.5%2012: +4.1%ASU*2010: 45.8Mto

2011: +1.6% 2012: +1.8%ASU*2010: 144.8Mto2011: +4.9%

2011:+6.6%2012:+8.3%

2012: +3.7%

14

*Apparent steel use Worldsteel/ GDP IMF

Page 15: Klöckner & Co - Q1 2011 Results

02 Outlook

• Full year 2011 guidance• >25% volume and sales growth resulting from acquisitions expected• >25% volume and sales growth resulting from acquisitions expected

• Midterm• Klöckner & Co 2020: 2015 sales volumes target of 8-10 million tons could be achieved as early

as 2012

• 2012 again increase in volumes and sales expected• 2012 again increase in volumes and sales expected

15

Page 16: Klöckner & Co - Q1 2011 Results

Agenda

01 Financials and performance Q1 2011

02 Outlook

03 Update on Klöckner & Co 2020

04 Appendix

16

Page 17: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel03 Attractive point of time to invest in mature…

• Steel consumption in Europe and North America is still significantly below pre crisis levels with positive growth prospects in the coming years

Apparent steel consumption in million to

EU 27 North America

-23%199

182

167 164

177

127115

103 103114

-24%118

147154

164

69

94 96103 103

2007 2008 2009 2010e 2011e 2012e 2013e 2014e2007 2008 2009 2010e 2011e 2012e 2013e 2014e 2007 2008 2009 2010e 2011e 2012e 2013e 2014e

17

Source: Meps2007 2008 2009 2010e 2011e 2012e 2013e 2014e

Page 18: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel03 …as well as in emerging markets

• Strong growth in steel consumption in emerging markets

Apparent steel consumption in million toApparent steel consumption in million to

Brazil China India Russia

+10% (1) +7% (1) +6% (1) +5% (1)10% 7% 6% 5%

565

774

442

565

75

22 19

31

5257

4031

39

(1) CAGR 2009 2014

19

2007 2009 2014e 2007 2009 2014e 2007 2009 2014e 2007 2009 2014e

18

(1) CAGR 2009 - 2014eSource: China: RB/CISA, Brazil: BMI, India and Russia: Meps

Page 19: Klöckner & Co - Q1 2011 Results

03 Overview Macsteel

• Macsteel is a leading US metal processor and distributor with a very strong position in the flat SSC segment

• 1,183 employees in 30 locations across the USA with a strong position on the East and West Coast and a SSC location in Mexico and Puerto Rico

• #1 carbon flat SSC in the US with expected sales of USD 1.8bn/ 1.5Mto in 2011

• Macsteel is of a similar size as Namasco

• Macsteel serves a very broad range of mainly industrial customers with mainly processed flat products

• Extensive processing such as slitting, cut-length/blanking, flame/laser/plasma cutting heat treating etcflame/laser/plasma cutting, heat treating, etc.

• Main customer segments: Transportation, machinery, O&G, agriculture, appliances, construction equipment

• Enterprise value of about USD 918m indicates an EV/EBITDA multiple f 7 b d t d i f 2011 b f iof 7x based on expected earnings for 2011 before synergies• Purchase price of USD 660m maximum and assumed debt of

USD 258m• Macsteel will be consolidated effective May 1, 2011. The acquisition

will immediately be earnings accretive, also because no significant y g gintegration charges are expected

• Annual cost synergies will be in the lower double-digit-million USD-range and are primarily expected in procurement and administration

19

Page 20: Klöckner & Co - Q1 2011 Results

03 Macsteel as perfect strategic fit to Namasco

• Macsteel is a perfect complementary fit to Namasco

• Complementary geographical reach customer• Complementary geographical reach, customer coverage and products

• Perfect implementation of strategy to expand flats SSC business with industrial customers to a leading position

• Become #3 in metal processing and distribution and #2 in carbon steel distribution

• Common 2010 sales impact of USD 2 5bn i e• Common 2010 sales impact of USD 2.5bn, i.e. 30% of Group sales

• US-American country organization now becomes the largest within the Companyg y

• Along with the German subsidiary Becker Stahl-Service the new acquisition provides the potential to break into the U.S. automotive industry, with a focus on European premium manufacturersfocus on European premium manufacturers

20

Page 21: Klöckner & Co - Q1 2011 Results

Folientitel03 Overview Frefer

• Frefer is the 3rd largest independent Brazilian steel distributor

• 14 locations and around 360 employees• 14 locations and around 360 employees• Acquiring 70% also by way of a capital increase• Acquisition price represents multiple of 6.5x five year

average projected EBITDAg p j

• Frefer has strong financials • Sales 2010: ~BRL 340m/ ~€150m• Turnover 2010: close to 200Tto• Turnover 2010: close to 200Tto• Profitability: above Group average

• Frefer serves a broad and diversified range of gcustomers

• Customers: Machinery & industrial equipment (1/3), on-sellers (1/3), construction, automotive and others

• Main products are sheets and plates• Main products are sheets and plates• Services include plasma cutting and decoiling

• Frefer has a strong management team and is well g gmanaged by the founder’s son Christiano Freire

21

Page 22: Klöckner & Co - Q1 2011 Results

Folientitel03 Macsteel and Frefer with perfect fit to Klöckner & Co 2020 Strategy

External

• Continued growth outside the construction industry to better balance customer portfolio• EBITDA-margin should be above current average at attractive multiples with transactions that

are accretive from day onegrowth strategy

are accretive from day one• Targets should be more sizeable than in the past especially in the US• Expansion of SSC business• Entry into emerging markets

• From “distribute into growing market” to “push to gain customers and market share”• Improve sales performance through sales excellence program• Expanding the share mainly in the area of higher margin products

Organic growth

y g g

• Realizing further scale benefits in purchasing and product management

Expanding the share mainly in the area of higher margin products • Stronger focus on value added services for industrial customer segments• Filling white spots in existing countries

growth strategy

Realizing further scale benefits in purchasing and product management• Further optimization of inventory management• Closer integration of country operations• Implementation of industry leading systems and processes

Business optimization

p y g y p

• Establish talent and performance management group-wide • Implement structured compensation and benefits system • Improve employer branding

Personnel & Management development Improve employer branding p

22

Page 23: Klöckner & Co - Q1 2011 Results

03 Growth target for 2015 already achievable in 2012

Get Ready Accelerate Sustain Momentum

15-20 Mio. to*8-10 Mio. to*

5 Mio. to*8 Mio. to*

• Preparing organization for high growth

• Sustain growth momentum• Manage size and global footprint

• Gaining growth momentum• Expand business around new

2010 2015 20202012

g• Internationalize management• Expanding footprint to emerging

markets• Implement industry leading

g g ppanchor points especially in emerging markets

p y gprocesses

23

* Sales volumes

Page 24: Klöckner & Co - Q1 2011 Results

03 Significant step forward towards a more balanced global portfolio

83%

40 60%67%

20 30% 20 30%

40-60%

30% 20-30%

17%

20-30%30%

3%

North AmericaCAGR 2010-20: ~15%

2010 2020Emerging markets

CAGR 2010-20: na

2010 20200%

2010 2020Europe

CAGR 2010-20: ~8%

20122012 2012

3%

CAGR 2010 20: 15% CAGR 2010 20: na

24

CAGR 2010 20: 8%

Page 25: Klöckner & Co - Q1 2011 Results

03 Change of customer mix with an increasing share of growing, more stable and higher margin business

Indicative sales split by industry

9%

12% 10% 10%

Share of growing, more stable and higher margin business will increase from

7%7%

7%

5% 10%9%

10% 11% 9%

business will increase from 36% to above 56%24%

23% 29%

42% 39% 36%

2008 2010 2012e

Construction Machinery Appliances Automotive On-Seller OthersConstruction Machinery Appliances Automotive On Seller Others

25

Page 26: Klöckner & Co - Q1 2011 Results

03 Strong Growth: 24 acquisitions since the IPO, 2 in 2011

Acquisitions1) Acquired sales1),2)Country Acquired 1) Company Sales (FY)2)

€1.15bnBrazil May 2011 Frefer €150m

USA May 2011 Macsteel €1bn

€712mGER Mar 2010 Becker Stahl-Service €600m

CH Jan 2010 Bläsi €32m

USA Dec 2010 Lake Steel €50m

USA Sep 2010 Angeles Welding €30m

2011 2 acquisitions so far €1,150m

€567m

2010 4 acquisitions €~712m

US Mar 2008 Temtco €226m

UK Jan 2008 Multitubes €5m

2008 2 acquisitions €231m

CH S 2007 L h & T i €9CH 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

€141m

12 €231m

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€108m

2

4

24

US Apr 2007 Primary Steel €360m

NL Apr 2007 Teuling €14m

F Jan 2007 Tournier €35m

2007 12 acquisitions €567m

2006 4 acquisitions €108m

2

26

¹ Date of announcement 2 Sales in the year prior to acquisitions 2005 2006 2007 2008 2009 2010 2011

Page 27: Klöckner & Co - Q1 2011 Results

03 Credit facilities extended and maturity profile improved

• Renewal of the European ABS program with a two year commitment

• Extension of the maturity date of the Multicurrency Revolving Facility for one year up to May 2014

Maturity profile of committed facilities*€2.5bnConvertible Bonds 2007 (€325m)

ABS Europe (€420m)

€1bn

Syndicated Loan (€500m)

Convertible Bonds 2009 (€98m)

Promissory Notes (€293m)€1bn

Convertible Bonds 2010 (€186m)

y ( )

Bilaterals (€560m)**Bilaterals (€560m)**

ABS US (€140m)

27

2011 2013 20152012 2014 2016* As of May 2011 | **rolling over

Page 28: Klöckner & Co - Q1 2011 Results

01 Significant financial scope for growth03 Significant financial scope for organic growth, but warchest for acquisitions to be replenished

• Capital increase planned with up to 50% of share capital in summer

AcquisitionsNWC ~€1.6bn

~ €700m* Capital increase of up to 50% planned

€500mSyndicated

Loan

€186mConvertibleBond 2010

up to 50% planned

€98m

€145mPromissory

Notes

€560mBilateralFacilities

€560mABS

€98mConvertibleBond 2009 Macsteel + Frefer

Facilities€325m

ConvertibleBond 2007 Promissory

notes €148m**

Q1 May 2011* Incl. capital increase in 2009 and after acquisitions in 2010** issued in April/May 2011

May 2011

28

Page 29: Klöckner & Co - Q1 2011 Results

03 Klöckner & Co 2020

Globalization Being the first global multi metal distributor

Growth Being the fastest growing multi metal distributor

Business optimization Having leading edge processes and systems

Management Having best in class management and employees& employees Having best in class management and employees

29

Page 30: Klöckner & Co - Q1 2011 Results

Agenda

01 Financials and performance Q1 2011

02 Outlook

03 Update on Klöckner & Co 2020

04 Appendix

30

Page 31: Klöckner & Co - Q1 2011 Results

04 Appendix

Financial calendar 2011

May 20, 2011 Annual General Meeting 2011

August 10, 2011 Q2 interim report 2011

November 9, 2011 Q3 interim report 2011

Contact details Investor RelationsContact details Investor Relations

Dr. Thilo Theilen, Head of Investor Relations & Corporate Communications

Phone: +49 203 307 2050

Fax: +49 203 307 5025

E-mail: [email protected]

Internet: www.kloeckner.de

31

Page 32: Klöckner & Co - Q1 2011 Results

04 Quarterly results and FY results 2006-2011

(€m)Q1

2011Q4

2010Q3

2010Q2

2010Q1

2010Q4

2009Q3

2009Q2

2009Q1

2009FY

2010FY

2009FY

2008FY

2007FY

2006

Volumes (Tto) 1,498 1,318 1,368 1,448 1,180 966 1,033 1,053 1,068 5,314 4,119 5,974 6,478 6,127

Sales 1,587 1,332 1,401 1,416 1,049 873 934 959 1,095 5,198 3,860 6,750 6,274 5,532

Gross profit 353 275 294 331 236 198 208 161 78 1 136 645 1 366 1 221 1 208Gross profit 353 275 294 331 236 198 208 161 78 1,136 645 1,366 1,221 1,208

% margin 22.3 20.6 21.0 23.4 22.5 22.6 22.3 16.8 7.1 21.9 16.7 20.2 19.5 21.8

EBITDA 104 48 61 100 29 83 11 -31 -132 238 -68 601 371 395

% margin 6.6 3.6 4.3 7.1 2.8 9.5 1.2 -3.2 -12.0 4.6 -1.8 8.9 5.9 7.1g

EBIT 86 24 39 78 11 26 -7 -48 -149 152 -178 533 307 337

Financial result -19 -19 -16 -17 -15 -16 -14 -15 -16 -67 -62 -70 -97 -64

Income before taxes 66 5 22 61 -4 9 -21 -63 -165 84 -240 463 210 273

Income taxes -22 12 -7 -14 6 3 -2 16 38 -4 54 -79 -54 -39

Net income 44 17 15 47 2 12 -23 -47 -127 80 -186 384 156 235

Minority interests 1 1 1 1 1 3 0 1 -2 3 3 -14 23 28

Net income KlöCo 43 16 14 46 1 9 -23 -48 -126 77 -188 398 133 206

EPS basic (€) 0.65 0.25 0.21 0.69 0.02 0.56 -0.42 -1.04 -2.70 1.17 -3.61 8.56 2.87 4.44

EPS diluted (€) 0.60 0.25 0.21 0.69 0.02 0.56 -0.42 -0.85 -2.43 1.17 -3.61 8.11 2.87 4.44

32

* Pro-forma consolidated figures for FY 2005, without release of negative goodwill of €139 million and without transaction costs of €39 million, without restructuring expenses of €17 million (incurred Q4) and without activity disposal of €1.9 million (incurred Q4).

Page 33: Klöckner & Co - Q1 2011 Results

04 Balance sheet as of March 31, 2011

(€m)March 31,

2011Dec. 31,

2010 Comments

Non-current assets 807 856

Inventories 1,043 899

Shareholders’ equity:• Decreased from 37.0% to 34.9%

mainly due to NWC increaseTrade receivables 925 703

Cash & Cash equivalents 928 935

Other assets 77 98

mainly due to NWC increase

• Would be at 46.2% if cash were used for debt reduction

Total assets 3,780 3,491

Equity 1,318 1,290

Total non-current liabilities 1,407 1,361

Financial debt:• Gearing at 18%

• Net debt position due to increased business

thereof financial liabilities 1,097 1,021

Total current liabilities 1,055 840

thereof trade payables 805 585

business

NWC:• Swing mainly driven by increased p y

Total equity and liabilities 3,780 3,491

Net working capital 1,163 1,017

Net financial debt 227 137

business

33

Net financial debt 227 137

Page 34: Klöckner & Co - Q1 2011 Results

04 Statement of cash flow Q1

Comments(€m) Q1 2011 Q1 2010

• NWC changes due to increased business

Operating CF 104 29

Changes in net working capital -167 -96

Others -6 7Others -6 7

Cash flow from operating activities -69 -60

Inflow from disposals of fixed assets/others 1 1

Outflow for acquisitions 0 -124Outflow for acquisitions 0 124

Outflow for investments in fixed assets/others -6 -4

Cash flow from investing activities -5 -127

Changes in financial liabilities 74 34g

Net interest payments -4 -3

Repayments of shareholder loan BSS 0 -58

Cash flow from financing activities 70 -27Cash flow from financing activities 70 27

Total cash flow -4 -214

34

Page 35: Klöckner & Co - Q1 2011 Results

04 Segment performance Q1 2011

(€m) EuropeNorth

AmericaHQ/

Consol. TotalComments

Volume (Ttons)

Q1 2011 1,164 334 - 1,498

Q1 2010 909 271 - 1,180

Comments

• Excl. BSS volume increase in Europe was 9.0% and total volume

Δ % 28.1 23.0 26.9

Sales

Q1 2011 1 290 297 - 1 587

increase was 12.5% yoy

• Without BSS total sales increase 39.4% yoy

Q1 2011 1,290 297 - 1,587

Q1 2010 858 191 - 1,049

Δ % 50.4 55.4 51.3

EBITDAEBITDA

Q1 2011 81 30 -7 104

% margin 6.3 10.1 6.6

Q1 2010 25 9 -5 29

% margin 2.9 4.8 - 2.8

Δ % EBITDA 230.3 228.3 259.3

35

Page 36: Klöckner & Co - Q1 2011 Results

Ein- bis zweizeiliger Folientitel04 Distributor in the sweet spot

Suppliers Sourcing Products and services

Logistics /distribution Customers

• As a manufacturing-independent distributor, our customers benefit from our diverse

• Procurement of large quantities

• Strategic partnerships

• Extensive product range

• Excellent product and processing

lit

• Local presence• Individual delivery,

including 24- hour service

• More than 170,000 customers

• Average normal order size approx. €2 000from our diverse

national and international procurement options

quality• Wide-ranging

service provision

€2,000• Service and

availability more important than price

Klöckner & Co value chain Global suppliers Local customers

36

Page 37: Klöckner & Co - Q1 2011 Results

04 Current shareholder structure

Geographical breakdown of identified institutional investors

Comments• Identified institutional investors account for 60%

• German investors incl. retail dominate

• Top 10 shareholdings represent around 29%

• Retail shareholders represent 25%

37

Page 38: Klöckner & Co - Q1 2011 Results

04 Our Symbol

the earsattentive to customer needs

the eyeslooking forward to new developmentsattentive to customer needs looking forward to new developments

the nosesniffing out opportunitiessniffing out opportunitiesto improve performance

the ballsymbolic of our role to fetchand carry for our customers

the legsthe legsalways moving fast to keep up withthe demands of the customers

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