Charts accompanying the FY2013 Analyst Conference for investors and analysts on March 6, 2014 Press Release: http://kloeckner.com/en/press-releases-4865.php Read full report at http://kloeckner.com/global/data/Kloeckner_Co_AnnualReport_2013.pdf (5,2MB)

1. Klöckner & Co SE
A Leading Multi Metal Distributor
Gisbert Rühl
CEO
FY 2013 Results
Analysts’ and Investors’ Conference
Marcus A. Ketter
CFO
March 6, 2014

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. Klöckner & Co SE
A Leading Multi Metal Distributor
Gisbert Rühl
CEO
Highlights and update on strategy

4. Agenda
01
Highlights and update on strategy
02
Financials
03
Outlook
04
Appendix
4

5. 01
•
•
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
•
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
•
•
•
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%
Restructuring program KCO 6.0 finalized
Implementation of KCO WIN measures on track
Acquisition of Riedo supports strategy to increase processing
5

6. 01
Negative market impact again overcompensated in Q4
KCO 6.0 EBITDA-impact
Comments
-23
Q4
40
22
Net KCO 6.0 effect:
€18m
-57
42
33
24
16
9
-35
EBITDA
bef. restr.
Q4 2012
Restr.
costs
-6
EBITDA
Q4 2012
Volume
Effect
Price
Effect
•
24
-3
-6
KCO 6.0
KCO
GP Effect 6.0 Cost
Effect
OPEX
•
EBITDA
Q4 2013
•
Market related GP effect: -€9m
FY
150
137
Net KCO 6.0 effect:
€61m
-77
81
26
47
34
60
Restr.
Costs
EBITDA
FY 2012
OPEX
EBITDA
FY 2013
-45
84
-33
EBITDA
bef. restr.
FY 2012
124
€4m
Volume
Price
Effect
Effect
•
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
-23
KCO 6.0
KCO
GP Effect 6.0 Cost
Effect
Market related GP effect: -€78m
6
Restructuring
charges

7. 01
Restructuring program KCO 6.0 fully implemented
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
€51m
2011-2012

€61m
2013

Total annual EBITDA-impact of ~€150m
€41m
2014
already realized
7

8. 01
Additional improvement potential through KCO WIN
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)
2014
€20m
Total annual EBITDA-impact of ~€50m
2015
€30m
8

9. 01
Further implementation of “Klöckner & Co 2020” strategy currently focused on
operational improvements through KCO WIN and differentiation
External &
internal growth
•
•
External growth with focus on higher value-added processing
Internal growth with focus on US market
Operations
•
Focus on KCO WIN
Growth and
optimization
Broad
product range
Differentiation
Higher valueadded processing
Advanced tools &
systems
Enabling
activities
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
9

10. 01
Acquisition of Riedo supports strategy to increase processing
•
Riedo is a leading processor of reinforcement steel in
Switzerland
•
•
•
•
•
•
Oberbipp
Acquisition highly accretive
•
•
Eschlikon
Switzerland
•
Heimberg
•
10
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
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

11. 01
Riedo as perfect strategic fit to Swiss subsidiary Debrunner Acifer
•
Riedo is a perfect complementary fit
•
•
•
•
Outlook for construction in Switzerland remains
positive
•
•
•
Switzerland
Debrunner Acifer
Riedo
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
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
Sites to be consolidated
* Source: BAKBASEL.
11

12. Klöckner & Co SE
A Leading Multi Metal Distributor
Marcus A. Ketter
CFO
Financials

13. Agenda
01
Highlights and update on strategy
02
Financials
03
Outlook
04
Appendix
13

14. 02
Turnover and sales
Turnover (Tto)
Sales (€m)
1,945
1,857
1,863
1,636
1,764
1,585
1,646
1,690
1,964
1,739
1,617
1,847
1,633
1,625
1,698
1,455
-10.9%
-5.8%
-9.0%
-7.7%
Q4
2011
•
•
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
1,600
1,492
Q3
2013
Q4
2011
Q4
2013
•
•
FY: 6,445 Tto vs. 7,068 Tto (-8.8%)
qoq decline reflecting seasonal slowdown and
restructuring measures
14
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
FY: €6,378m vs. €7,388m (-13.7%)
Average prices per ton further decreased into Q4
but started to turn

15. 02
Gross profit and EBITDA
Gross profit* (€m) / Gross-margin* (%)
EBITDA* (€m) / EBITDA-margin* (%)
47
344
50
344
307
43
306
302
303
305
296
39
288
19.8
29
18.7 FY
17.6
17.5 FY
17.7
22
+>1%p
18.5
18.5
17.5
2.4
24
18.6
2.5
18.0
18
1.3
40
2.7
2.5
2.4
Q2
2013
Q3
2013
1.8
1.3
1.0
16.6
Q4
2011
•
•
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q4
2011
•
FY 2013 €1,192m (GM: 18.7%) vs. FY 2012 €1,295m
(GM: 17.5%)
Gross profit margin already significantly improved
* Before restructuring costs
15
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
FY 2013 €150m (EBITDA-margin 2.4%)
vs. FY 2012 €137m (EBITDA-margin 1.8%)
Q4
2013

16. XX
02
Turnaround started in Q3
18
(€m)
6
137
• EUR -€15m
• AMX -€2m
• HQ +€2m
One-off
• Pensions ODS
+€7m
-18
• EUR -€8m
• AMX -€8m
• HQ -€2m
-8
Q1 yoy
21
15
6
-€15m
• EUR +€7m
• AMX +€8m
One-off
• Pensions
ODS +€6m
7
EBITDA
2012 before
restructuring
12
Q2 yoy
Q3 yoy
• EUR +€6m
• AMX -€3m
• HQ +€3m
One-offs
• Pensions ODS
+€1m
• Gain
La Courneuve
+€11m
150
Q4 yoy
EBITDA
2013 before
restructuring
[thereof f/x effects -€3.2m]
one-time effects
16

17. 02
EBT impacted by restructuring and material one-offs
(€m)
-4
-1,067
-22
1,188
S Restructuring costs: €-47m
• Pensions
ODS
+€14m
• Gain on sale
La
Courneuve
+€11m
S Material one-offs:
€+25m
€-22m
EBT effect:
25
• Personnel
cost -€ 15m
• Other -€ 7m
124
-182
• Impairments
-€24m
• Reversal
Frefer Put
Liability
+€3m
-79
-21
Gross profit
OPEX
OPEX
restruct.
One-offs
*IDA = Interest, depreciation and amortization
17
EBITDA
reported
IDA*
IDA restruct.
EBT

18. 02
Cash flow and net debt development
Cash flow reconciliation in FY 2013 (€m)
Comments
-52
•
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
•
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)
-26
-25
-17
-36
143
124
107
36
EBITDA Change Interest
2013
in NWC
Taxes
Cash out
La
Other
for Courneuve
Restruct.
and
Provisions Pensions
NL
Cash
Capex
Free
flow from (net) cash flow
operating
2013
activities
Development of net financial debt FY 2013 (€m)
Dec 31, 2012
NWC releases boosted free cash
flow
•
-24
163
CF from
operating
activities
Capex (net)
-36
422
143
Other
Dec 31, 2013
325
-10
18

19. 02
Strong balance sheet
Assets
Equity & liabilities
3,880
3,880
3,595
Non-current assets
3,595
1,107
Equity
977
1,502
1,445
39%
40%
Inventories
1,254
1,166
Non-current financial liabilities
914
Other non-current liabilities
470
350
634
637
Trade receivables
787
687
Other current assets
122
170
Current financial liabilities
Liquidity
610
595
Other current liabilities
727
Trade payables
Dec 31, 2012* Dec 31, 2013
250
110
252
184
Dec 31, 2012* Dec 31, 2013
Comments
•
•
•
•
Equity ratio further solid at 40%
* As restated for the initial application of IAS 19 rev. 2011.
Net debt of €325m
** Gearing = Net debt/Equity attributable to shareholders of
Klöckner & Co SE less goodwill from business
combinations subsequent to May 23, 2013.
Gearing** at 23%
NWC decreased from €1,407m to €1,216m yoy
19

20. Klöckner & Co SE
A Leading Multi Metal Distributor
Gisbert Rühl
CEO
Outlook

21. 03
General and segment specific business outlook
Europe
+1-2%
USA
GDP
+2-3%
Construction industry
Machinery and mechanical
engineering
Automotive industry
+1-2%
Apparent steel demand
21
+3-4%

22. 03
•
•
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
22

23. Agenda
01
Highlights and update on strategy
02
Financials
03
Outlook
04
Appendix
23

24. 04
Quarterly results and FY results 2009-2013
(€m)
Q4
2013
Q3
2013
Q2
2013
Q1
2013
Q4
2012*
Q3
2012*
Q2
2012*
Q1
2012*
Q4
2011
FY
2013
FY
2012*
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
-7
-3
-2
1
-19
3
3
-4
12
-12
-18
-17
-4
-59
-11
-4
-16
-123
-29
-39
-12
-27
-90
-203
10
80
-5
0
0
0
-1
-1
0
1
-1
-6
-3
-1
3
-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
Income taxes
Net income
Minority interests
Net income KlöCo
* Restated due to initial application IAS 19 revised 2011.
24
FY
2011
FY
2010

25. 04
Both regions recovering from their profitability lows
Turnover (Tto)
Sales (€m)
1,105 1,097
1,223 1,237
1,018
Europe
990
908
941
930
1,137
903
EBITDA* before restructuring (€m)
35
34**
1,149
1,041 1,017 1,061 1,006
839
28**
935
22
16
12
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2011
Q4
2013
Turnover (Tto)
Q1
2012
Q2
2012
Q3
2012
722
749
746
727
Q1
2013
Q2
2013
Q3
2013
Q4
2013
716
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
592
714
608
637
21
Restructuring costs (€m)
Europe
Americas
Q1
2013
Q2
2013
20
13
13
12
-12.2%
-3.6%
Q4
2012
20
16
653
Q3
2012
Q4
2013
520
646
Q2
2012
Q3
2013
29
594
22
Q1
2012
Q2
2013
EBITDA before restructuring (€m)
677
Q4
2011
Q1
2013
698
602
Americas
Q4
2012
Sales (€m)
766
752
14
-10.1%
-7.5%
Q4
2011
26**
22
Q3
2013
Q4
2013
Q4
2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
10
3
17
-1
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q4 2012 Q3 2013 Q4 2013
57
1
2
13
11
25
* 2012: as restated for the initial application of IAS19 revised 2011.
** Including pension release: Q2 2013 €7m, in Q3 2013 €6m and Q4 2013 €1m
and sale of French La Courneuve site €13m.

26. 04
Segment performance Q4 2013
(€m)
Europe
Americas
HQ/Consol.
Total
Q4 2013
839
653
1,492
Q4 2012
908
677
1,585
-7.5
-3.6
-5.8
Q4 2013
935
520
1,455
Q4 2012
1,041
592
1,633
-10.1
-12.2
-10.9
Q4 2013
22
2
% margin
2.4
0.4
Q4 2012
-38
15
% margin
-3.7
2.6
-2.2
156.6
-87.0
145.7
Turnover (Tto)
Δ%
Sales
Δ%
EBITDA
Δ % EBITDA
-8
16
1.1
-12
-35
26

27. 04
Balanced maturity profile December 2013
Drawn amount
€m Facility
€m
Committed
Q4 2013*
Q4 2013
FY 2012*
Adjusted equity
536
62
98
0
0
9
ABS
560
191
161
Gearing 4)
Syndicated Loan
360
161
161
Promissory Note 2)
235
238
348
Maturity profile of committed facilities and drawn
amounts (€m)
864
Total Senior Debt
1,691
652
777
Convertible 2009 3)
98
98
92
Convertible 2010 3)
186
171
164
Bilateral Facilities 1)
Other Bonds
1,430
325
Net debt
23%
11
360
444
8
376
Total Debt
1,975
921
349
1,033
287
49
52
228
Cash
595
179
611
50
Net Debt
325
98
422
*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
50
248
186
186
186
5)
Bilaterals
10
8
48
236
160
151
31
98
2014
52
360
2015
ABS
9
133
2016
Syndicated loan
133
200
142
2017
Promissory notes
US ABL
Left side: committed facilities
27
Right side: drawn amounts
4
Thereafter
Convertibles
4

28. 04
Balance sheet as of December 31, 2013
(€m)
December 31, 2013
December 31, 2012*
977
1,107
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
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
325
422
Comments
Non-current assets
Inventories
thereof financial liabilities
Net financial debt
28
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.

29. 04
Profit & loss 2013
(€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
124
60
-130
-165
-6
-105
Financial result
-73
-80
EBT
-79
-185
Taxes
-12
-18
Net income
-90
-203
-5
-3
-85
-200
EBITDA
Depreciation & Amortization
EBIT
Minorities
Net income attributable to KCO shareholders
29

30. 04
Sales by markets, products and industries
As of December 31, 2013
30

31. 04
Current shareholder structure
Comments
Geographical breakdown of identified
institutional investors
•
•
•
•
As of January 2014
31
Identified institutional investors
account for 53%
German investors incl. retail
dominate
Top 10 shareholdings represent
around 26%
Retail shareholders represent 27%

32. 04
Appendix
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
32

33. 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