Klöckner & Co - Roadshow Presentation April 2012

Click here to load reader

Embed Size (px)

Transcript of Klöckner & Co - Roadshow Presentation April 2012

  • 1. Klckner & Co SE A Leading Multi Metal Distributor Klckner & Co SE April 2012CEO / CFO Gisbert Rhl

2. Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of Klckner & 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 Klckner & 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 Klckner & Co SE can deviate significantly from those that are expressed or implied in these statements. Klckner & Co SE cannot give any guarantee that the expectations or goals will be attained. Klckner & 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, Klckner & 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 3. Highlights01 Update on Klckner & Co 2020 Financials Q4/FY 2011 Outlook Appendix 02 03 04 05 Agenda 3 4. 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 Klckner & 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 5. 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 6. Highlights01 Update on Klckner & Co 2020 Financials Q4/FY 2011 Outlook Appendix 02 03 04 05 Agenda 6 7. Strategy Klckner & 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 to 6.7m to Market Klckner Market Klckner KCO vs. market growth +2.3% Management Review Level 1 Level 3 Level 2 25 70 165 Division Managers Holding Direct Reports of Country C Department Managers Holding Direct Reports of 2nd level with Mgmt. Functions Level 1 Level 3 Level 2 25 70 165 C-Level of Countries Division 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 11,381 11,577 8. 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 9. Strategy Klckner & 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 10. Highlights01 Update on Klckner & Co 2020 Financials Q4/FY 2011 Outlook Appendix 02 03 04 05 Agenda 10 11. 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 12. 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 13. 873 1,049 1,416 1,401 1,332 1,587 1,885 1,885 1,739 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 +30.5% -7.7% Turnover and sales03 966 1,180 1,448 1,368 1,318 1,498 1,763 1,765 1,636 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 -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 14. 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 198 236 331 294 275 353 337 318 307 22.5 23.4 21.0 20.6 22.3 17.9 16.8 17.6 22.6 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 29 61 48 104 62 37 14 83 100 2.8 7.1 4.3 3.6 6.6 3.3 1.9 0.8 9.5 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 14 15. Segment performance FY 201103 Turnover (Tto) Sales (m) EBITDA (m) * consolidation of BSS as of March 1, 2010 Turnover (Tto) Sales (m) EBITDA (m) EuropeAmericas * * 730 858 1,180 1,169 1,104 1,290 1,365 1,251 1,137 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 +3.0% * * 730 909 1,162 1,084 1,029 1,164 1,192 1,067 990 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 * * -3.8% 143 191 236 232 228 297 520 634 602 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 +163.9%/+27.3%** 236 271 286 284 289 334 571 698 646 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 +123.5%/+7.8%** 143 25 93 60 45 81 50 24 12 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 3 9 13 5 7 30 23 15 13 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 ** Without acquisitions in 2011 15 16. 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 12 2 47 15 17 44 5 -12 -27 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Net income by full year (m) -21 -20 -12 -186 -17 10 Net Income FY 2009 Net Income FY 2010 EBITDA D&A Financial Result Taxes Net Income FY 2011 8