Klöckner & Co SE

A Leading Multi Metal Distributor

Klöckner & Co SE

Full Year Results 2011

Roadshow March 2012

CEO/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

Highlights 01

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 promised 01

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

Highlights 01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

6

Strategy “Klöckner & Co 2020”: Progress in 2011 02

• 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 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 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

Update on major acquisitions and their integration 02

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 2012 02

• 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

Highlights 01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

10

Financials FY 2011 03

EBITDA

Sales

Gross profit

Turnover

5,314 Tto

+25.4%

FY 2010 FY 2011

6,661 Tto

€5,198m

€7,095m +36.5%

FY 2011 FY 2010

€238m

€217m

-8.9%

FY 2011 FY 2010

€1,136m

€1,315m +15.7%

FY 2011 FY 2010

11

Financials Q4 2011 03

€1,332m

€1,739m +30.5%

Q4 2011 Q4 2010

€48m €14m

-71.7%

Q4 2011 Q4 2010

1,318 Tto

+24.1%

Q4 2010 Q4 2011

1,636 Tto

EBITDA

Sales

Gross profit

Turnover

€275m €307m

+11.6%

Q4 2011 Q4 2010

12

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 sales 03

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

EBITDA (€m) / EBITDA-margin (%)

Gross profit and EBITDA 03

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

Segment performance FY 2011 03

Turnover (Tto) Sales (€m) EBITDA (€m)

* consolidation of BSS as of March 1, 2010

Turnover (Tto) Sales (€m) EBITDA (€m)

Euro

pe

Am

ericas

* *

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

Net income slightly positive in 2011 03

• 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

80

16

Cash flow slightly positive before capex and acquisitions 03

* exchange rate effects, interest

Cash flow reconciliation in FY 2011 (€m)

EBITDA

Change in

NWC Taxes Other

CF from

operating

activities Capex

net 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 increase 03

* exchange rate effects, interest

Development of net financial debt in FY 2011

(€m)

2010

CF from

operating

activities Capex Acquisitions

Capital

increase Dividends

Assumed

debt Other* 2011

Development of net financial debt in Q4 2011

(€m)

+6 -38

-444

-22

-137

516

-236

-116

-471

Q3

CF from

operating

activities Capex Dividends Other* Q4

+154

-17 -2 -26

-580 -471

• Debt reduction in Q4 mainly driven by NWC

release

18

Strong balance sheet 03

* Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations 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: € 4,706 m

39.2%

32.4%

28.4%

Non - current assets

1,295

Inventories

1,362

Trade receivables

922

Other current

assets 140

Liquidity

987

Equity

1,843

Non - current

Liabilities

1,526

Current liabilities

1,337

100%

0%

19

Balanced maturity profile with first repayment in July 2012 03

€m Facility Committed Drawn 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 interest

1) Including finance lease

2) New promissory notes issued in Q2 2011 (€198)

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 28, 2010

Maturity profile of committed facilities and drawn

amounts (€m)

Committed facilities

Drawn amounts

667 527

675

296

487

374

109

397

266

352

2012 2013 2014 2015 Thereafter

20

Highlights 01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

21

Segment specific business outlooks 04

Americas

• US: small growth in construction, funding for

commercial projects improving, government

related sectors (i.e. hospitals, schools, highways)

showing strengths ahead of the elections;

industrial machinery and equipment growing

strongly, 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 huge

infrastructure pent-up demand

Europe

• Germany: demand holding up well due to machinery and

mechanical engineering, but VDMA reports backdrop in

order entries of 27% last three months

• Switzerland: construction still strong, but first signs of

cooldown; mechanical engineering suffering from

high CHF

• France: construction is trending sidewards as fiscal

supports fading out and business confidence decreasing

for commercial construction

• UK: confidence in construction sector is improving

slightly but overall activity to stay subdued due to

budgetary cuts, only commercial (esp. London) and

public transportation related construction might grow

• Spain: construction still recessive with further declines

not to be ruled out

22

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

Highlights 01

Update on “Klöckner & Co 2020”

Financials Q4/FY 2011

Outlook

Appendix

02

03

04

05

Agenda

24

Appendix 05

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 2007-2011 05

26

(€m) Q4

2011

Q3

2011

Q2

2011

Q1

2011

Q4

2010

Q3

2010

Q2

2010

Q1

2010

Q4

2009

FY

2011

FY

2010

FY

2009

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 2011 05

27

Acquisitions1) Acquired sales1),2)

€141m

€567m

€108m

2

4

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 €567m

2006 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, 2011 05

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 2011 05

(€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 2011 05

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 products 05

24% Long productsQuality steel/Stainless steel 8%

Aluminium 7%

Tubes 6%

42% Flat productsOthers 13%

Sales by product

28% USA

France/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 structure 05

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 ears

attentive to customer needs

the eyes

looking forward to new developments

the nose

sniffing out opportunities

to improve performance

the ball

symbolic of our role to fetch

and carry for our customers

the legs

always moving fast to keep up with

the demands of the customers

33