1. Klöckner & Co SE
A Leading Multi Metal Distributor
Gisbert Rühl
CEO
Q3 2013 Results
Press Telephone Conference
November 6, 2013

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”, “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

3. Agenda
01
Highlights and update on strategy
02
Financials Q3/9M 2013
03
Outlook
04
Appendix
3

4. 01
•
•
•
•
•
Highlights
Markets in Q3 continued to be weak in Europe (-2.1% yoy)* but improved in the US (+4.6% yoy)**
Klöckner & Co turnover decreased by 8.3% yoy also due to restructuring measures (-4.9%p) and further reduction of
commodity business; sales down by 13.4% yoy
Gross profit margin improved from 16.6% to 18.5%. Gross profit declined consequently significantly less than sales
by 3.2% to €296m
EBITDA of €39m (before restructuring) met guidance of €30-40m also without €6m one-off from the release of
pension accruals
Restructuring program KCO 6.0 far advanced: 61 out of 71 sites closed and HC reduced by more than 2,000 since
9/2011; all measures to be implemented by the end of 2013
•
Optimization measures KCO WIN with EBITDA-contribution of €20m in 2014 and additional €30m in 2015 onwards
initiated
•
FY-EBITDA target of €140m (before restructuring) and positive FCF confirmed
* Source: Eurometal; turnover of distribution in Q3 in Europe yoy.
** Source: MSCI; turnover of distribution/SSC in Q3 in the US yoy.
4

5. 01
Restructuring program KCO 6.0 on track and far advanced
Measures
•
•
•
•
•
•
•
Remaining measures in France and the US (optimization after integration of macsteel) to be implemented
by the end of the year
Total headcount reduction 2,200 = 19% (2,000 already realized)
Total site closures 71 = 24% (61 already closed or sold)
Total cost reduction of €190m (€107m realized)
Total annual EBITDA-impact of ~€160m (€94m realized)
Reduction of NWC by >€170m largely realized
Additional cost of approximately €25m mainly offset by NWC release
€51m
2011-2012
2013
€43m
€65m
€45m
2014
already realized
5
Total annual EBITDA-impact of ~€160m

6. 01
Turnaround through self-help measures visible despite weak markets
KCO 6.0 EBITDA-impact
Q3
KCO 6.0 EBITDA
contribution
€14m
39
2
Comments
•
9
-23
10
44*
18
36
19
11
-14
6
29
5
16
•
-4
EBITDA
Q3 2012
YTD
Volume
Effect
Price
Effect
KCO
6.0 GP
effect
KCO 6.0
Cost effect
KCO 6.0 EBITDA
contribution
€43m
20
-23
39
14
110
2
25
39
10
44*
108
95
-14
30
4
EBITDA
9M 2012
EBITDA
Q3 2013
Volume
Effect
Price
Effect
•
Restructuring charges
Market related GP effect: €-5m
115
OPEX 1)
29
60
16
-4
17
KCO
6.0 GP
effect
Market related GP effect: €-69m
KCO 6.0
Cost effect
OPEX1)
EBITDA
9M 2013
6
•
In Q3 measures contributed an
additional €14m to EBITDA against
prior year, ytd €43m
Cost cuts achieved trough KCO 6.0
amounted to €19m in Q3, ytd €60m
Negative volume and price effects of
€5m in Q3 overcompensated by €14m
positive KCO 6.0 effects
Neagtive volume and price effects ytd
of €69m for the most part
compensated by €43m positive
KCO 6.0 effects
1)
Incl. one-off gain of €6m (ytd €13m) due to release of pension provisions.

7. 01
Further improvement potential through KCO WIN measures with short term EBITDAcontribution
Reaction to still unsatisfying market environment in Europe
•
•
•
•
•
Optimized pricing and sales force management
Improved customer relationship management
Further improved sourcing to leverage price potential
Reduction of logistic costs
Downsizing of corporate and country holdings
2014
€20m
Total annual EBITDA-impact of ~€50m
2015
€30m
7

8. SERVICES
MARKETS
01
KCO WIN measures support our unchanged long-term strategy
US
CH +
BSS
EUROPEAN
GENERAL
LINE
KCO WIN
Growth market is the US where re-shoring of manufacturing will be driven by low
energy and labor costs
Profitable business units in Switzerland and BSS should grow further and stabilize
their high earnings level
Profitability of European general line distribution business has to be improved
short-term

Transformation towards higher value-added services also to integrate more into
the supply chains of our customers

PRODUCTS
Competitive advantage against smaller and mid-size competitors by providing a
brought range of multi metals and services through widespread net work structure
Improvement of product portfolio by reducing commodities further and increasing
sales of higher margin products
8


9. Agenda
01
Highlights and update on strategy
02
Financials Q3/9M 2013
03
Outlook
04
Appendix
9

10. 02
Financials Q3/9M 2013
Jan. 1 –
Sep. 30, 2013
Income statement
Jan. 1 –
Sep. 30, 2012*
Q3 2013
Q3 2012*
Sales
€ million
4,922
5,755
1,600
1,847
Gross profit
€ million
904
989
296
306
%
18.4
17.2
18.5
16.6
EBITDA before restructuring expenses
€ million
110
115
39
18
Earnings before interest, taxes, depreciation and amortization
(EBITDA)
€ million
108
95
36
Earnings before interest and taxes (EBIT)
€ million
110
115
39
18
Earnings before taxes (EBT)
€ million
30
-15
10
-9
Net income before restructuring expenses (2012: before
restructuring expenses and impairments)
€ million
-26
-82
-8
Net income
€ million
-31
-80
-11
-29
Net income attributable to shareholders of Klöckner & Co SE
€ million
-31
-78
-11
-28
Earnings per share (basic)
€
-0.31
-0.87
-0.11
-0.28
Earnings per share (diluted)
€
-0.31
-0.87
-0.11
-0.28
Gross profit margin
Jan. 1 –
Sep. 30, 2013
Cash flow statement/ Cash flow
Jan. 1 –
Sep. 30, 2012*
Q3 2013
18
-31
Q3 2012*
Cash flow from operating activities
€ million
-2
-86
44
-
Cash flow from investing activities
€ million
-25
-18
-11
-10
Free cash flow**)
€ million
-27
-104
33
-10
*) Comparative amounts for 2012 restated due to the first-time adoption of IAS 19 rev. 2011. Further information can be taken from note 2 to the financial statements.
**) Free cash flow = Cash flow from operating activities plus cash flow from investing activities.
10

11. 02
Gross profit and EBITDA
Gross profit (€m) / Gross-margin (%)
EBITDA (€m) / EBITDA-margin (%)
50*
344
47*
344*
43*
37
2.4*
2.5*
39*
2.5*
2.4*
1.8
1.9
318
306
307
17.6
17.7
Q3
2011
•
302*
17.5*
16.8
18.5*
18.6
18.0
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
296
29
1.0
21*
1.3*
303
16.6
Q4
2011
305
1.3*
24*
18.5
18
+~1%p
Q3
2013
Q3
2011
•
Despite further declining prices, gross profit margin
improved compared to Q3 2012 mainly due to exit of
low margin business
Q4
2011
Q1
Q2
Q3
Q4
Q1
2012** 2012** 2012** 2012** 2013
Q3
2013
Strong cost reduction with positive effect on
EBITDA-margin, generating significantly higher
EBITDA yoy
* Before restructuring costs and including in Q2 2013 €7m and in Q3 2013 €6m pension release; without release 2.1% EBITDA-margin in Q2 as well as in Q3.
. As restated for the initial application of IAS19 revised 2011.
**
11
Q2
2013

12. 02
Strong balance sheet
Assets
3,880
Non-current assets
1,107
Equity & liabilities
3,880
3,712
1,039
Equity
1,502
3,712
38.7%
Inventories
1,254
1,512
40.7%
1,384
1,174
Trade payables
634
606
Other current liabilities
360
420
1,168
Non-current liabilities
Trade receivables
787
843
Other current assets
122
Liquidity
610
103
559
Dec 31, 2012* Sept 30, 2013
Dec 31, 2012* Sept 30, 2013
Comments
•
•
•
•
Equity ratio further solid at 41%
* As restated for the initial application of IAS 19 rev. 2011.
Net debt of €462m
** Gearing = Net debt/Equity attributable to shareholders of
Klöckner & Co SE less goodwill from business
combinations subsequent to May 23, 2013.
Gearing** at 31%
NWC decreased by €51m to €1,405m qoq
12

13. Agenda
01
Highlights and update on strategy
02
Financials Q3/9M 2013
03
Outlook
04
Appendix
13

14. 03
Current trading and outlook
•
Europe
•
•
•
US
Brazil
•
•
•
China
•
Outlook for construction is mixed: Further recovery in U.K. expected, housing in Germany remains relatively
strong but also non-res is gaining some momentum, NL seems to be through the trough, Switzerland remains
healthy and France weak
Automotive continues to be weak in France, is improving slightly in Germany and doing well in UK
After mechanical engineering dropped significantly in the beginning of this year especially in Germany market is
currently gaining momentum into 2014 through pent-up demand and improving exports
Automotive, energy, HVAC, shipbuilding and residential construction were strong this year, while military
equipment, non-res construction, mining, yellow goods were weak
Picture will not change significantly for the most sectors except non-res construction where volumes should
pick-up slightly
Appliances, agricultural equipment and non-res construction are expected to stay strong, whereas demand for
industrial machines, sugar mills, electronics and residential construction remain low
Engineering, energy, port equipment and railway continues to be strong, whereas mining equipment and
construction machinery business are expected to remain weak
China's policy remains to discourage exports of primary steel products; instead, exports of value-added products,
such as steel components, machinery, heavy equipment, marine oil-drilling platforms are being supported. In this
area significant growth is expected
14

15. 03
•
Outlook
Q4 2013
•
Turnover and sales to be seasonally lower but less pronounced because of improving outlook in
the US
•
EBITDA guidance of €30 before restructuring driven by further restructuring effects kicking in
•
FY 2013
•
Turnover and sales expected to come in below prior year`s level mainly due to weaker markets in
H1 and restructuring impact
•
•
•
EBITDA target at last year`s level of €140m before restructuring costs confirmed
Free cash flow expected to be again meaningful positive
Net debt again to be reduced further yoy despite restructuring cash-outs
15

16. Agenda
01
Highlights and update on strategy
02
Financials Q3/9M 2013
03
Outlook
04
Appendix
16

17. 04
Appendix
Financial calendar 2013/2014
November 6, 2013
Q3 interim report 2013
March 6, 2014
Annual Financial Statements 2013
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
17

18. Our Symbol
the ears
attentive to customer needs
the eyes
looking forward to new developments
the nose
sniffing out opportunities
to improve performance
the legs
always moving fast to keep up with
the demands of the customers
the ball
symbolic of our role to fetch
and carry for our customers