Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q3 2022 Earnings Presentation
25 slides from Kloeckner &'s earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Results
Q3 2022 RESULTS Analysts’ and Investors’ Conference November 3, 2022 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 | Q3 2022 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q3 2022
HIGHLIGHTS OF Q3 2022 Q3 2022 Q3 2021 Slight decline yoy due to negative macroeconomic environment and weaker Shipments (Tto) 1,148 1,190 -3.5% volumes during summer months Sales (€m) 2,367 2,038 +16.1% Considerable increase due to higher average price level yoy Gross profit (€m) 305 540 -43.5% Down
Slide 5: Launch of Nexigen and first delivery of CO2-reduced steel
LAUNCH OF NEXIGEN® AND FIRST DELIVERY OF CO2-REDUCED STEEL Nexigen® bundles all sustainable business solutions within the Klöckner-Group Sustainable products together with green logistics, circularity solutions and Sustainability Advisory Services (SAS) Offering CO2-reduced steel and metal pro
Slide 6: Progress in digitalization and automation
PROGRESS IN DIGITALIZATION AND AUTOMATION Kloeckner Assistant processed >€1bn of sales volume in 2022 New core feature successfully implemented Kloeckner Assistant now able to automatically extract relevant information from unstructured text emails in addition to PDF files Replacing time-con
Slide 7: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 7 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investors’ Conference
Slide 8: Consistent net working capital management
CONSISTENT NET WORKING CAPITAL MANAGEMENT High quality net working capital management Committed to a strong “through the cycle performance”, ~2,100 fostering upside risks and mitigating downside risks Positive price dynamics of 2021 and early 2022 were 2,258 ~1,600 2,239 2,185 translated into re
Slide 9: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 2,580 542 2,438 508 2,367 482 2,038 2,030 439 305 1,257 1,226 1,190 1,148 1,108 26.6 21.6 19.8 19.7 12.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021* Q4 2021* Q1 2022 Q2 2022 Q3 2022 Shipments (Tto) Sales (€m) Gross
Slide 10: EBITDA development
EBITDA DEVELOPMENT EBITDA (€m) in Q3 2022 Positive operating result despite exceptionally negative macro environment, significant price correction and weak demand -19 Considerably down yoy due to inventory writedown as a result of the significant steel price declines and actively enforced invent
Slide 11: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q3 2022 (€m) -8 -36 EBITDA of €16m 47 -25 NWC decrease of €134m; strict NWC management initiatives 134 163 Strong and significantly positive cash flow from operating 128 activities of €163m 16 Net CAPEX of €-36m EBITDA Change Interest Taxes Other
Slide 12: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 46%, gearing* of 38% and leverage of 1.3x 4,592 4,592 3,878 1,086 3,878 2,126 1,099 46% 1,827 1,919 47% 1,716 1,003 817 40 50 1,314 1,048 844 941 199 58 64 74 340 375 Dec 31, 2021 Sep 30, 2022 Dec 31, 2021 Sep 30, 2022 Non-current assets Trade rec
Slide 13: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 13 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investors’ Conference
Slide 14: Region specific business outlook 2022
REGION SPECIFIC BUSINESS OUTLOOK 2022 Europe +1-2% Real steel Construction Manufacturing, Energy Automotive Shipbuilding demand industry machinery & mechanical industry industry engineering, etc. USA +1-2% 14 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investors’ Conference
Slide 15: Outlook
OUTLOOK Sales significantly above and shipments slightly below prior-year level FY expected EBITDA before material special effects expected to be around €400m 2022 Exceptionally positive cash flow from operating activities expected 15 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investor
Slide 16: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 16 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investors’ Conference
Slide 17: Quarterly and FY results
QUARTERLY AND FY RESULTS Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2021 2020 2019 2018 2017 Shipments (Tto) 1,148 1,226 1,257 1,108 1,190 1,295 1,287 1,195 1,242 1,070 1,365 4,881 4,873 5,648 6,107 6,135 Sales 2,367 2,580 2,438 2,030
Slide 18: Segment performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA*) (€m) -7.9% +15.3% 146 609 1,216 586 588 1,148 1,158 101 561 72 80 537 1,004 1,000 38 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 KM EU Shipments (Tto) Sales (€m)
Slide 19: Maturity profile
MATURITY PROFILE Facility Committed Drawn amount €m Sep 30, 2022 (€m) Sep 30, 2022 Sep 30, 2022 Dec 31, 2021 Adjusted equity4) 2,103 Syndicated Loan 250 25 36 Net Debt 806 ABS Europe 300 225 189 Gearing5) 38% ABL USA1) 462 282 240 Leverage6) 1.3x Convertible 20162) 141 137 142 Bilateral Facilities3)
Slide 20: Sales by markets, products and industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 1% 4% 4% 9% 6% 2% 8% 6% 7% 8% 14% 8% 46% 51% 38% 10% 9% 25% 14% 30% USA Flat products Construction industry Germany/Austria Long products Machinery/Mechanical engineering Switzerland Aluminum Automotive
Slide 21: Share price performance in Q3 2022
SHARE PRICE PERFORMANCE IN Q3 2022 140% The market environment in Q3 was characterized by high 130% inflation and the corresponding measures taken by central banks, as well as concerns about possible supply constraints in 120% the already tight energy markets The share price of Klöckner & Co rea
Slide 22: Dividend policy
DIVIDEND POLICY In general, Klöckner & Co SE follows a dividend policy of Inclusion of our general dividend policy in financial distributing 30% of net income before special items. year 2010 with a dividend of €0.30 per share Given the volatility of our business model, a sustainable Due to earni
Slide 23: Our ambitious climate targets
OUR AMBITIOUS CLIMATE TARGETS SCOPE 1 & 2: SCOPE 3 SCOPE 3 OWN DIRECT AND UNDER DIRECT SUPPLIERS AND INDIRECT EMISSIONS INFLUENCE CUSTOMERS Reduction of 50% Reduction of 50% Reduction of 30% by 2030 by 2030 by 2030 Net zero by 2040 Net zero by 2040 Net zero by 2050 Carbon neutral from now on In addi
Slide 24: Customer-centric metric for CO2-reduced steel and Nexigen brand
LEADING THE SUSTAINABILITY TRANSFORMATION: INTRODUCTION OF A CUSTOMER- CENTRIC METRIC FOR CO2-REDUCED STEEL AND LAUNCH OF NEXIGEN® BRAND OUR AMBITION 2025-2030 Separate category for “balanced” green steel along international standards 50% Methodology along international standards 30% Emissions from
Slide 25: Investor relations contact and financial calendar
Felix Schmitz FINANCIAL CALENDAR Head of Investor Relations | March 9, 2023 Head of Strategic Sustainability Annual financial statements 2022 +49 203 307-2295 felix.schmitz@kloeckner.com www.kloeckner.com 25 Klöckner & Co SE | Q3 2022 Results | Analysts’ and Investors’ Conference