Klöckner & Co SEA Leading Multi Metal Distributor

Klöckner & Co SE

April 2012CEO / CFO

Gisbert Rühl

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

00

Highlights01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

3

Highlights FY 2011 and until today

• Turnover and sales significantly improved by 25.4% and 36.5% respectively

• EBITDA (€217m) below last year (€238m) leading to a slightly positive net income (€10m)not fully compensating the weight of economic downturn

• Delivering on “Klöckner & Co 2020” strategy exceeding first time €7bn sales

• Transforming deal with Macsteel catapulting us from #10 to #3 in the US

• Pilot acquisition in emerging markets with Frefer in Brazil

• First SSC in China opened

• Capital raising for further growth, €1bn growth capital available

• Immediate reaction with profitability action plan

• Expansion of the Board of Management to reflect importance of Americas segment to be more than one third

01

4

We delivered on what we promised01

Guidance for FY 2011 delivered

Turnover growth > 25% 25.4%

Sales growth > 35% 36.5%

Increase in EBITDA vs. €238m in 2010 €217m

Gearing < 75% 29.0%

Equity ratio > 30% 39.2%

Net debt < €500m €471m

5

Highlights01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

6

Strategy “Klöckner & Co 2020”: Progress in 201102

• Acquisition of Macsteel in the US and Frefer in Brazil contributed to increased annual turnover by 25% from 5.3m to to 6.7m to and sales by 37% from €5.2bn to €7.1bn

• Successful market entry in China

• Market out-performance in the US supported by continued investment in value added processing

• Market under-performance in Europe also because of product portfolio adjustments, esp. in Q4

• Structural measures across all country organizations• Headcount reduction by 6% vs. Q3 or ~700 employees• Targeting 1%p-EBITDA margin improvement, i.e. ~€70m p.a.• One-off costs low double digit fully offset with disposal proceeds • Status Q4: headcount reduction of ~200 already, €10m one-offs in Q4

• Management reviews completed

Organic growth strategy

Management & Personnel Development

Business optimization

External growth strategy

2010 2011

Turnover

5.3m to6.7m to

Market Klöckner Market Klöckner

KCO vs. market growth

+2.3%

Management Review

Level 1

Level 3

Level 2

25

70

165

Division Managers Holding

Direct Reports of Country CDepartment Managers Holding

Direct Reports of 2nd level with Mgmt. Functions

Level 1

Level 3

Level 2

25

70

165

C-Level of CountriesDivision Managers Holding

Direct Reports of Country C-Lev.Department Managers Holding

Direct Reports of 2nd level with Mgmt. Functions

Board

+25%

-3.8%

US EU

7

Headcount reduction

-196

Q3 2011 FY 2011

11,38111,577

Update on major acquisitions and their integration02

Frefer/Brazil

• Sales contribution since consolidation on June 1 €59m

• Turnover 75Tto since June 1• Structurally difficult market with longerlasting

overcapacities due to strong local currency which attracted imports and affected exports. As a consequence local mills are pushing more steel through their local distribution channels

• Changing the business model to add more value added processing and niche products to differentiate from mill tied distributors; i.e. through redundant equipment transfer from the US to Brazil

• Sharing best practices and knowledge transfer within the Americas segment

• Consolidation of locations to create efficiencies

Kloeckner Metals US (MSCUSA/Namasco)

• Sales contribution of €781m since consolidation in May 1, annualized segments‘ sales impact > 1/3

• Turnover 0.8 million Tons since consolidation in May 1• EBITDA not yet satisfactory but progressing well into 2012• Combined NWC significantly reduced by tighter inventory

management through central purchasing

Synergies: • Purchasing synergies realized in transaction prices and

rebates• Joint headquarters in Roswell, Georgia• Common sales force already realizing cross selling effects• Realignment of group operations along product lines

complete• Common brand since March 1 with Kloeckner Metals US• Conversion of Macsteel locations to common IT platform

by mid year

8

Strategy “Klöckner & Co 2020”: Targets for 201202

• At least no focus in H1

• Further market outperformance in the US after the integration of Macsteel through significant cross-selling effects

• Further reduction of highly commoditized businesses in Europe should be partially compensated by increasing sales of higher value products

• Full implementation of profitability action plan measures

• Full implementation of country specific projects and measures

• Implementation of a common performance management

Organic growth strategy

Management & Personnel Development

Business optimization

External growth strategy

9

Highlights01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

10

Financials FY 201103

EBITDA

Sales

Gross profit

Turnover

5,314 Tto

+25.4%

FY 2010 FY 2011

6,661 Tto

€5,198m

€7,095m+36.5%

FY 2011FY 2010

€238m€217m

-8.9%

FY 2011FY 2010

€1,136m

€1,315m+15.7%

FY 2011FY 2010

11

Financials Q4 201103

€1,332m

€1,739m+30.5%

Q4 2011Q4 2010

€48m €14m

-71.7%

Q4 2011Q4 2010

1,318 Tto

+24.1%

Q4 2010 Q4 2011

1,636 Tto

EBITDA

Sales

Gross profit

Turnover

€275m €307m

+11.6%

Q4 2011Q4 2010

12

8731,049

1,416 1,401 1,332

1,5871,885 1,885 1,739

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

+30.5%

-7.7%

Turnover and sales03

9661,180

1,448 1,368 1,3181,498

1,763 1,7651,636

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

-7.3%

+24.1%

Sales (€m)Turnover (Tto)

• qoq decline reflecting seasonal slowdown and destocking because of economic uncertainty

• Average prices per ton held up well qoq despite negative spot price development (Q3: €1,068 vs Q4: €1,063)

13

EBITDA (€m) / EBITDA-margin (%)

Gross profit and EBITDA03

Gross profit (€m) / Gross-margin (%)

• Gross profit margin recovering slightly since trough in Q3

• EBITDA in Q4 impacted by €10m restructuring charges for profitability action plan

198236

331294

275

353 337318 307

22.523.4

21.0 20.622.3

17.9 16.8 17.6

22.6

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

29

6148

104

62

37

14

83

100

2.8

7.1

4.33.6

6.6

3.3

1.90.8

9.5

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

14

Segment performance FY 201103

Turnover (Tto) Sales (€m) EBITDA (€m)

* consolidation of BSS as of March 1, 2010

Turnover (Tto) Sales (€m) EBITDA (€m)

Eur

ope

Am

eric

as

* *

730858

1,180 1,169 1,104

1,290 1,3651,251 1,137

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

+3.0%

*

*

730

909

1,1621,084 1,029

1,164 1,1921,067

990

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

* *

-3.8%

143191

236 232 228297

520

634 602

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

+163.9%/+27.3%**

236271 286 284 289

334

571

698 646

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

+123.5%/+7.8%**

143

25

93

6045

81

50

2412

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

3

913

57

30

23

1513

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

** Without acquisitions in 2011

15

Net income slightly positive in 201103

• Tax rate high i.a. to non-recognition of deferred tax assets on losses incurred in 2011

• FY net income affected by restructuring charges and ppa on intangibles driven D&A effects of €39m

Net income by quarter (€m) Comments

122

47

15 17

44

5

-12-27

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Net income by full year (€m)

-21

-20

-12

-186

-17

10

Net IncomeFY 2009

Net IncomeFY 2010 EBITDA D&A

FinancialResult Taxes

Net IncomeFY 2011

80

16

Cash flow slightly positive before capex and acquisitions03

* exchange rate effects, interest

Cash flow reconciliation in FY 2011 (€m)

EBITDAChange in

NWC Taxes Other

CF fromoperatingactivities

Capexnet Acquisitions Free CF

-127

-37-47

-38

217

6

-444 -476

• Capex (net) with €38m below D&A ex ppa• Purchase prices paid for acquisitions (€444m)

mainly caused the negative free cashflow

Comments

17

Capital increase partly compensated acquisition related debt increase03

* exchange rate effects, interest

Development of net financial debt in FY 2011 (€m)

2010

CF fromoperatingactivities Capex Acquisitions

Capitalincrease Dividends

Assumeddebt Other* 2011

Development of net financial debt in Q4 2011(€m)

+6 -38

-444

-22-137

516

-236

-116

-471

Q3

CF fromoperatingactivities Capex Dividends Other* Q4

+154

-17 -2 -26

-580-471

• Debt reduction in Q4 mainly driven by NWC release

18

Strong balance sheet03

* Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from businesscombinations subsequent to May 28, 2010

Comments

• Equity ratio of 39%

• Net debt of €471m

• Gearing* at 29%

• NWC decreased by €158m to €1,534m qoq

• NWC/sales structurally increased by 2%p due to MSCUSA acquisition, i.e.new normal ~22%

50%

27.5%

28.9%

19.6%

3.0%

21.0%

Balance sheet total 2011: €4,706m

39.2%

32.4%

28.4%

Non-currentassets1,295

Inventories1,362

Trade receivables922

Other currentassets 140

Liquidity987

Equity1,843

Non-current Liabilities1,526

Current liabilities1,337

100%

0%

19

Balanced maturity profile with first repayment in July 201203

€m Facility CommittedDrawn amount

FY 2011* FY 2010*

Bilateral Facilities1) 610 126 73

Other Bonds 20 20 0

ABS 575 175 88

Syndicated Loan 500 226 226

Promissory Note2) 343 349 147

Total Senior Debt 2,048 896 534

Convertible 20073) 325 319 306

Convertible 20093) 98 86 81

Convertible 20103) 186 157 151

Total Debt 2,657 1,458 1,072

Cash 987 935

Net Debt 471 137

€m Q4 2011

Adjusted equity 1,654

Net debt 471

Gearing4) 29%

*Including interest1) Including finance lease2) New promissory notes issued in Q2 2011 (€198)3) Drawn amount excludes equity component4) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010

Maturity profile of committed facilities and drawn amounts (€m)

Committed facilities

Drawn amounts

667527

675

296

487

374

109

397

266 352

2012 2013 2014 2015 Thereafter

20

Highlights01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

21

Segment specific business outlooks04

Americas

• US: small growth in construction, funding forcommercial projects improving, government related sectors (i.e. hospitals, schools, highways) showing strengths ahead of the elections;industrial machinery and equipment growingstrongly, esp. in farming related businesses, construction equipment, telecom/IT, mining, energy; appliances and residential construction depending on consumer confidence trend; decreasing unemployment rate supportive

• Brazil: steel distribution highly competitive at the moment given mills enforcing local distribution, strong BRL favours imports and hindering exports, nevertheless market growth trend intact with hugeinfrastructure pent-up demand

Europe

• Germany: demand holding up well due to machinery andmechanical engineering, but VDMA reports backdrop in order entries of 27% last three months

• Switzerland: construction still strong, but first signs ofcooldown; mechanical engineering suffering fromhigh CHF

• France: construction is trending sidewards as fiscalsupports fading out and business confidence decreasingfor commercial construction

• UK: confidence in construction sector is improving slightly but overall activity to stay subdued due tobudgetary cuts, only commercial (esp. London) andpublic transportation related construction might grow

• Spain: construction still recessive with further declines not to be ruled out

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Outlook

• H1 2012• Turnover to be sequentially up in Q1 and again in Q2 expected• EBITDA in Q1 expected to be €40-50m with further increase in Q2• Opposite to 2011, Q2 from todays’ perspective will be stronger than Q1, whereas H2 not yet

predictable• FY 2012

• In North- and South America we expect an increasing and in Europe a declining steel demand:• Americas: up by mid single digit percentage point plus consolidation effects• Europe: down by up to a mid single digit percentage point

Overall increasing turnover as well as sales expected for Klöckner & Co• EBITDA target-margin achievement of 6% for Americas reasonable but not for the group already

due to Europe• Profitability action plan targeting annualized contribution of 1%p EBITDA-margin improvement • All initiated measures in Europe and the robust growth in the US should support an increasing

EBITDA in 2012 compared to 2011

04

23

Highlights01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

24

Appendix05

25

Financial calendar 2012

May 9, 2012 Q1 interim report 2012

May 25, 2012 Annual General Meeting 2012

August 8, 2012 Q2 interim report 2012

November 7, 2012 Q3 interim report 2012

Contact details Investor Relations

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

Phone: +49 203 307 2050

Fax: +49 203 307 5025

E-mail: thilo.theilen@kloeckner.de

Internet: www.kloeckner.de

Quarterly results and FY results 2007-201105

26

(€m) Q42011

Q3 2011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Q2 2010

Q1 2010

Q42009

FY2011

FY 2010

FY2009

FY 2008

FY 2007

Turnover (Tto) 1,636 1,765 1,763 1,498 1,318 1,368 1,448 1,180 966 6,661 5,314 4,119 5,974 6,478

Sales 1,739 1,885 1,885 1,587 1,332 1,401 1,416 1,049 873 7,095 5,198 3,860 6,750 6,274

Gross profit 307 318 337 353 275 294 331 236 198 1,315 1,136 645 1,366 1,221

% margin 17.6 16.8 17.9 22.3 20.6 21.0 23.4 22.5 22.6 18.5 21.9 16.7 20.2 19.5

EBITDA 14 37 62 104 48 61 100 29 83 217 238 -68 601 371

% margin 0.8 1.9 3.3 6.6 3.6 4.3 7.1 2.8 9.5 3.1 4.6 -1.8 8.9 5.9

EBIT -18 8 36 86 24 39 78 11 26 111 152 -178 533 307

Financial result -21 -22 -21 -19 -19 -16 -17 -15 -16 -84 -67 -62 -70 -97

Income before taxes -39 -15 15 66 5 22 61 -4 9 27 84 -240 463 210

Income taxes 12 3 -9 -22 12 -7 -14 6 3 -17 -4 54 -79 -54

Net income -27 -12 5 44 17 15 47 2 12 10 80 -186 384 156

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

Net income KlöCo -27 -11 5 43 16 14 46 1 9 12 78 -188 398 133

EPS basic (€) -0.27 -0.11 0.07 0.65 0.25 0.21 0.69 0.02 0.56 0.14 1.17 -3.61 8.56 2.87

EPS diluted (€) -0.27 -0.11 0.07 0.60 0.25 0.21 0.69 0.02 0.56 0.14 1.17 -3.61 8.11 2.87

Strong Growth: 24 acquisitions since the IPO, 2 in 201105

27

Acquisitions1) Acquired sales1),2)

€141m

€567m

€108m

24

12

2

2005 2006 2007 2008 2009 2010

4

€231m

€712m

2011

2

€1.15bn

¹ Date of announcement 2 Sales in the year prior to acquisitions

Country Acquired 1) Company Sales (FY)2)

GER Mar 2010 Becker Stahl-Service €600m

CH Jan 2010 Bläsi €32m

2010 4 acquisitions €712m

US Mar 2008 Temtco €226m

UK Jan 2008 Multitubes €5m

2008 2 acquisitions €231m

CH 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

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

NL Apr 2007 Teuling €14m

F Jan 2007 Tournier €35m

2007 12 acquisitions €567m2006 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

2011 2 acquisitions €1,150m

Comments

Balance sheet as of December 31, 201105

28

(€m) December 31, 2011 December 31, 2010

Non-current assets 1,295 856

Inventories 1,362 899

Trade receivables 922 703

Cash & Cash equivalents 987 935

Other assets 140 98

Total assets 4,706 3,491

Equity 1,843 1,290

Total non-current liabilities 1,526 1,361

thereof financial liabilities 1,068 1,020

Total current liabilities 1,337 840

thereof trade payables 750 585

Total equity and liabilities 4,706 3,491

Net working capital 1,534 1,017

Net financial debt 471 137

Shareholders’ equity:• Stable at 39% despite

NWC and net financial debt increase, benefitting from capital increase

Financial debt:• Gearing at 29%• Gross debt of €1.5bn and

cash position of €1bn result in a net debt position of €471m

NWC:• Swing mainly driven by

acquisitions

Profit & loss 201105

(€m) FY 2011 FY 2010

Sales 7,095 5,198

Gross profit 1,315 1,136

Personnel costs -588 -487

Other operating expenses -562 -447

EBITDA 217 238

Depreciation & Amortization -106 -86

EBIT 111 152

Financial result -84 -68

EBT 27 84

Taxes -17 -4

Net income 10 80

Minorities -1 2

Net income attributable to KCO shareholders 12 78

29

Segment performance Q4 201105

30

(€m) Europe Americas* HQ/Consol. Total

Turnover (Tto)

Q4 2011 990 646 1,636

Q4 2010 1,029 289 1,318

Δ % -3.8 123.5 24.1

Sales

Q4 2011 1,137 602 1,739

Q4 2010 1,104 228 1,332

Δ % 3.0 163.9 30.5

EBITDA

Q4 2011 12 13 -11 14

% margin 1.0 2.1 0.8

Q4 2010 45 7 -4 48

%margin 4.1 2.8 3.6

Δ % EBITDA -74.3 99.8 -71.7

* in 2010 North America

• Excl. MSCUSA, Frefer and Lake Steel turnover increase in Americas was 7.8% and sales increase was 27.3% yoy

• Without acquisitions total volume decreased by 1.3% and total sales increased by 7.1% yoy

Comments

Acquisitions shift exposure towards more promising regions and products05

24% Long productsQuality steel/Stainless steel 8%

Aluminium 7%

Tubes 6%

42% Flat productsOthers 13%

Sales by product

28% USAFrance/Belgium 16%

Switzerland 13%

UK 6%

28% Germany/EECSpain 4%

Sales by markets

Netherlands 3%Brazil 1%

China <1%

31

Machinery and mechanical 24% engineering

Miscellaneous 11%

Local dealers 10%

Household appliances/Consumer goods 7%

37% Construction industry

Automotive industry 11%

Sales by industry

Current shareholder structure05

32

Geographical breakdown of identified institutional investors

Comments

• Identified institutional investors account for 50%

• German investors incl. retail dominate

• Top 10 shareholdings represent around 27%

• Retail shareholders represent 26%• 100% freefloat

Other World 1%

Germany 28%

Other EU 20%

Norway 9%

UK 15%

US 18%

Switzerland 9%

As of December 2011

Our symbol

the earsattentive to customer needs

the eyeslooking forward to new developments

the nosesniffing out opportunitiesto improve performance

the ballsymbolic of our role to fetchand carry for our customers

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

33