Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q1 2023 Earnings Presentation
25 slides from Kloeckner &'s earnings presentation, May 3, 2023
Slide 1: Your partner for a sustainable tomorrow
Your partner for a sustainable tomorrow Press Conference Call May 3, 2023 Guido Kerkhoff | CEO
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which reflect the current views of the management of Klockner & 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
Slide 3: Agenda: Outlook, Appendix
2. Outlook 3. Appendix Klackner & Co SE | Q1 2023 Results | Press Conference
Slide 4: Highlights of Q1 2023
HIGHLIGHTS OF Q1 2023 Fon 2023 onaOea) Delis Slightly down yoy after exceptionally high demand in Q1 2022; Shipments (Tto) 1,213 1,257 -3.6% very considerably up qoq (415.9%) Sales (€m) 2,076 2,438 -14.8% Decrease due to lower price level yoy Gross profit (€m) 357 482 -25.9% Decrease due to less fav
Slide 5: EBITDA (€m) in Q1 2023
EBITDA (€M) IN Q1 2023 ) EBITDA Volume Price OPEX FX 12022 effect effect EBITDA 12023 Material special effects 5 KlGckner & Co SE | Q1.2023 Results | Press Conference EBITDA 12023 reported Strong operating result in Q1 2023 despite challenging environment Down yoy due to less pronounced price dynami
Slide 6: Further proof point of our leadership role in a sustainable steel industry
Further proof point of our leadership role in a sustainable steel industry Sustainable solutions now include last mile of logistic and virtually emission-free deliveries to our customers Fully integrated in Nexigen® PCF Algorithm Continuing our strong focus on digitalization and automation of our va
Slide 7: 1. Highlights and update on strategy
1. Highlights and update on strategy 3. Appendix Klackner & Co SE | Q1 2023 Results | Press Conference
Slide 8: Region specific business outlook 2023
REGION SPECIFIC BUSINESS OUTLOOK 2023 Europe ©» ©) © © © ten I Ts Aa at a Real steel Construction Manufacturing, Energy Automotive Shipbuilding demand industry machinery & mechanical industry industry engineering, etc. mice © O O © 0-2%
Slide 9: Outlook
OUTLOOK Q 2 |" EBITDA expectation of €60-110m before material special effects 2023 = Positive cash flow from operating activities anticipated = Shipments expected to increase considerably yoy; sales expected to come in below prior-year level due to lower expected overall price level FY 2023 EBITDA b
Slide 10: Appendix divider
1. Highlights and update on strategy 2. Outlook Klackner & Co SE | Q1 2023 Results | Press Conference
Slide 11: Quarterly and FY results
QUARTERLY AND FY RESULTS (€m) @i 4 93 62 3s 2 a 3 aa a] rr FY OFY FY OFY 2023 2022 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2022 2021 2020 2019 2018 Shipments (Tto) 12 1047812261257 1081901295187 195 zae 0701365 | 4679 | 4881 4873 5,648 6,107 Sales 2076 1993 «2.367 «2580 «2438 «2,030 «
Slide 12: Strong performance through the cycle
STRONG PERFORMANCE THROUGH THE CYCLE Smart net working capital management 69 1,735, 64 2,258 , 1,789 1 Ez 3 2022 4 2022 Q 22 2 HB HRC Us in USD (indicative) HRC Europe in € (indicative) Il EBITDA before material special effects MB Nw iném Operating Cash Flow €m 12 _KlGckner & Co SE | Q1.2023 Results
Slide 13: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 2.580 508 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q12023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q12023 IM Shipments (Tto) Il Sales (€m) IM Grossmargin (%) Ill Gross profit (€m) 13. KlGckner & Co SE | Q1.2023 Results| Press Conference
Slide 14: EBITDA (€m) in Q1 2023
EBITDA (€M) IN Q1 2023 ) EBITDA Volume Price OPEX FX 12022 effect effect EBITDA 12023 Material special effects 14 Kléckner & Co SE | Q1 2023 Results| Press Conference EBITDA 12023 reported Strong operating result in Q1 2023 despite challenging environment Down yoy due to less pronounced price dynami
Slide 15: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q1 2023 (€m) = = EBITDA reported of €48m oe -) a = NWC decrease of €34m mainly due to disciplined NWC management “ = Strong cash flow from operating activities of €64m = Net CAPEX of €8m EBITDA Change Interest Taxes Other Cashflow Net CAPEX Free cash = Fr
Slide 16: Segment performance
6 SEGMENT PERFORMANCE KMUS Sh ments (Tto) 586 588 599 561 | 504 Q12022 22022 Q32022 Q4Z0z2 12023 KM EU Shipments (Tto) 482 454 454 426 | B 390 BS Qi2022 22022 32022 Q4z0z2 12023 KM Non-EU Shipments (Tto) 190 184 161 154 160 Ber B ae ee ee 6S Qi20z2 Qz20z2 Q32022 —Q42OZ2_—Q12023 Sales (€m) 1216 1148
Slide 17: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 52%, gearing” of 28% and leverage of 1.9x Assets Equity & Liabilities 3,859 3,766 3,859 3,766 1.033 1.014 1.968 1.945 51% 2% 1.633 1.493 Dec 31, 2022 Mar 31, 2023 Dec 31, 2022 Mar 31, 2023 HM Non-current assets MI Trade receivables") II Liquidity
Slide 18: Maturity profile
MATURITY PROFI Facility Committed (€m) Mar 31, 2023 | Mar 31,2023 | Dec 31, 2022 LE Syndicated Loan 250 ABS Europe’) 300 154 159 ABL USA 598 69 155 Convertible 20162) 141 139 139 Bilateral Facilities?) 193 113 120 Leases 165 165 165 Total Debt 1,647 645 763 Cash 106 179 Net Debt 539 584 1) Facility
Slide 19: 3% 3% 1% 8% 9% 5% 2% 8% 11% 14% 31% 7% 47% 51%
3% 3% 1% 8% 9% 5% 2% 8% 11% 14% 31% 7% 47% 51% 12% 10% 27% 13% 14% 24%
Slide 20: Share price performance in Q1 2023
SHARE PRICE PERFORMANCE IN Q1 2023 120% = The capital market environment remained volatile throughout Q1 2023, especially after the collapse of Silicon 115% Valley Bank in the beginning of March = The share price of Klockner & Co increased in January after ox reaching its lowest level of €9.33 on Ja
Slide 21: Dividend policy
DIVIDEND POLICY In general, Kléckner & 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 22: Our ambitious climate targets
OUR AMBITIOUS CLIMATE TARGETS kloeckner takes gf) action 2040 SCOPE 1&2: SCOPE 3 SCOPE 3 OWN DIRECT AND UNDER DIRECT NOT UNDER DIRECT INDIRECT EMISSIONS INFLUENCE INFLUENCE 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 C
Slide 23: German Sustainability Award 2023
German Sustainability Award 2023 GTHE SUSTAI NABILITY TRANSFORMATION Ze Sb eA Vv Emissions a production vo Separate category for “balanced” green steel 23. Kléckner & Co SE |Q12023 Results| Press Conference NEXIGEN® STEEL CATEGORIZATION Six categorizations for transparent carbon emissions We have de
Slide 24: A comprehensive approach
A COMPREHENSIVE APPROACH Nexigen® categorizations for stainless steel & aluminum Stainless Steel \\ BALANCED START STEP PLUS | 2500 2000 1500 1000 600 0 Emission in kg CO,/ t stainless steel Aluminum \\ BALANCED START STEP PLUS | | | 5500 4000 3000 2000 1000 0 Emission in kg CO,/ t aluminum Nexigen®
Slide 25: Contact and financial calendar
os Your partner fora kléckner &co sustainable tomorrow Christian Pokropp Head of Corporate Communications | Head of Group HR & +49 203 307-2050 & christian.pokropp@kloeckner.com @® www.kloeckner.com 25. Kléckner & Co SE |Q12023 Results| FINANCIAL CALENDAR May 17, 2023 Annual General Meeting 2023 Aug