Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q2 2021 Earnings Presentation
26 slides from Kloeckner &'s earnings presentation, Aug 10, 2021
Slide 1: Q2 2021 Results
Q2 2021 RESULTS Analysts’ and Investors’ Conference August 10, 2021 Guido Kerkhoff | CEO Dr. Oliver Falk | CFO John Ganem | Member of the Management Board Bernhard Weiß | Member of the Management Board
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which reflect the In addition to the key figures prepared in accordance with IFRS and current views of the management of Klöckner & Co SE with respect to German-GAAP respectively, Klöckner & Co SE is presenting non-GAAP future events.
Slide 3: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 3 Klöckner & Co SE | Q2 2021 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q2 2021
HIGHLIGHTS OF Q2 2021 Q2 2021 Q2 2020 Still impacted by COVID-19 pandemic; gradual recovery continues; Shipments (Tto) 1,295 1,070 +21.0% disciplined margin over volume strategy Sales (€m) 1,847 1,171 +57.8% Mainly due to higher price level yoy Very considerable increase due to price dynamics and sm
Slide 5: Ready to Grow - Klöckner & Co 2025: Leveraging Strengths
READY TO GROW - “KLÖCKNER & CO 2025: LEVERAGING STRENGTHS” CUSTOMER GROWTH Immediate execution of “Leveraging Strengths” Adjusted organizational structure in EU-Europe and in parts new management teams New cross-border collaboration projects launched DIGITALIZATION & OPERATIONAL VALUE CHAIN Ne
Slide 6: New Structure and Improved Setup in EU-Europe
NEW STRUCTURE AND IMPROVED SETUP IN EU-EUROPE Bernhard Weiß new Member of the Management Board with responsibility for EU-Europe New and internationally experienced management at Becker Stahl-Service, Klöckner Deutschland and Benelux under joint CFO-role Further centralization of finance and a
Slide 7: The Next Step: Digitalization & Value Chain Automation
THE NEXT STEP: DIGITALIZATION & VALUE CHAIN AUTOMATION New Digital sales >€500m kloeckner.i share at 45% sales via KA New kloeckner.i taking over core function in merging & Digital sales share at 45%, up by 7% yoy, flat qoq due to extending the physical and the digital business unprecedented mar
Slide 8: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 8 Klöckner & Co SE | Q2 2021 Results | Analysts’ and Investors’ Conference
Slide 9: Shipments, Sales and Gross Profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments (Tto) & Sales (€m) Gross profit (€m) & Gross margin (%) Shipments Sales 1,847 524 1,525 388 1,279 1,287 1,295 1,242 1,232 28,4 1,171 1,195 1,070 275 263 25,4 229 22.3 20,6 19,5 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020* Q3 2020* Q4 2020* Q1 2021 Q2 2
Slide 10: Best Quarterly Operating Result Since IPO in 2006
BEST QUARTERLY OPERATING RESULT SINCE IPO IN 2006 EBITDA (€m) in Q2 2021 Price- & volume- Positive volume effect due to continued recovery from linked expenses COVID-19 pandemic Windfall -28 effects Strong positive price effect due to price dynamic in Europe -17 19 -14 -1 and especially in the U
Slide 11: Smart Net Working Capital Management - High Performance Through the Cycle
SMART NET WORKING CAPITAL MANAGEMENT - HIGH PERFORMANCE THROUGH THE CYCLE in €m in % Relatively higher stock level (relative to turnover) during 1.600 30 pandemic peaks created the foundation for good service quality 1.500 after demand restarted 1.400 Benefiting from low stock prices during phas
Slide 12: Cash Flow and Net Debt Development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q2 2021 (€m) EBITDA of €270m -176 -4 Net working capital increase of €176m -15 270 -1 Strong positive cash flow from operating activities of €74m -16 Net capex €-16m 74 58 Free cash flow accordingly €+58m EBITDA Change Interest Taxes Other Cash
Slide 13: Maturity Profile - Diversified Portfolio and Strong Liquidity
MATURITY PROFILE – DIVERSIFIED PORTFOLIO AND STRONG LIQUIDITY Facility Committed Drawn amount €m Jun. 30, 2021 (€m) Jun. 30, 2021 Jun. 30, 2021 Dec. 31, 2020 Adjusted equity 1,399 Syndicated Loan 300 0 0 Net Debt 303 ABS Europe 220 35 112 Gearing 3) 22% ABL USA 278 34 53 Convertible 2016 1) 148 141
Slide 14: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 14 Klöckner & Co SE | Q2 2021 Results | Analysts’ and Investors’ Conference
Slide 15: Region Specific Business Outlook 2021
REGION SPECIFIC BUSINESS OUTLOOK 2021 Europe +5-10% Real steel Construction Manufacturing, Energy Automotive Shipbuilding demand industry machinery & mechanical industry industry engineering, etc. USA +7-12% 15 Klöckner & Co SE | Q2 2021 Results | Analysts’ and Investors’ Conference
Slide 16: Outlook
OUTLOOK Q3 Significant increase in sales (qoq) due to pricing dynamics and slight decrease in shipments (qoq) due to seasonality expected 2021 EBITDA expectation of €200-230m before material special effects Sales significantly, shipments slightly above prior-year level expected FY EBITDA bef
Slide 17: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 17 Klöckner & Co SE | Q2 2021 Results | Analysts’ and Investors’ Conference
Slide 18: Quarterly and FY Results
QUARTERLY AND FY RESULTS Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 2018 2018 2018 2018 2020 2019 2018 2017 2016 Shipments (Tto) 1,295 1,287 1,195 1,242 1,070 1,365 1,250 1,420 1,479 1,499 1,398 1,519 1,605 1,584 4,873 5,648 6,107
Slide 19: Segment Performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA*) (€m) +20.2% +77.0% 134 633 845 619 599 662 75 564 527 515 478 483 23 17 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 KM Switzerland Shipments (Tto) Sales (€m) EB
Slide 20: Segment Performance
SEGMENT PERFORMANCE KM Services Shipments (Tto) Sales (€m) EBITDA*) (€m) +43.6% +77.6% 186 13 216 217 224 174 164 11 192 159 10 7 134 98 -2 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 KM Distribution Shipments (Tto) Sales (€
Slide 21: Strong Balance Sheet
STRONG BALANCE SHEET *) Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less Solid equity ratio of 43% goodwill from business combinations subsequent to May 23, 2019. Net debt of €303m **) Incl. contract assets and supplier bonuses. Gearing*) at 22% NWC at €1,282m
Slide 22: Sales by Markets, Products and Industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 1% 4% 3% 12% 6% 7% 7% 8% 9% 18% 40% 45% 41% 10% 11% 9% 27% 16% 26% USA Flat products Construction industry Germany/Austria Switzerland Long products Machinery/Mechanical engineering France Quality steel/
Slide 23: Share Price Performance in Q2 2021
SHARE PRICE PERFORMANCE IN Q2 2021 13,50 € 17.000 13,00 € 16.500 The share price of Klöckner & Co moved sideways at the 12,50 € 16.000 beginning of Q2 2021 reaching its lowest level of €10.72 12,00 € 15.500 on May 19 The share price increased sharply thereafter reaching its 11,50 € 15.000 highes
Slide 24: Dividend Policy
DIVIDEND POLICY In general, Klöckner & Co SE follows a dividend policy of Inclusion of our general dividend policy in financial year distributing 30% of net income before special items. 2010 with a dividend of €0.30 per share Given the volatility of our business model, a sustainable Due to earni
Slide 25: Taking Responsibility and Grow Sustainably
TAKING RESPONSIBILITY AND GROW SUSTAINABLY Employees Digitalization A qualified and motivated We are advancing the internal cultural change. workforce is central to our success. Our measures aim at anchoring innovative, digital ways of Our working environment is characterized by long term working an
Slide 26: Financial Calendar
FINANCIAL CALENDAR November 3, 2021 Q3 quarterly statement 2021 March 9, 2022 Felix Schmitz Annual Financial Statement 2021 Head of Investor Relations | Head of Sustainability May 4, 2022 Q1 quarterly statement 2022 +49 203 307-2295 June 1, 2022 felix.schmitz@kloeckner.com Annual General Meeting 202