Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q1 2024 Earnings Presentation
25 slides from Kloeckner &'s earnings presentation, May 7, 2024
Slide 1: Q1 2024 Results
Q1 2024 RESULTS Analysts’ and Investors’ Conference Call May 7, 2024 Guido Kerkhoff | CEO Dr. Oliver Falk | CFO John Ganem | 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 | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q1 2024
HIGHLIGHTS OF Q1 2024 Q1 2024*) Q1 2023*) Increase yoy on Group level driven by continued strong development of Shipments (Tto) 1,139 1,087 +4.8% Kloeckner Metals Americas and despite ongoing challenging macro environment in Europe Sales (€m) 1,737 1,840 -5.6% Decrease due to lower average price lev
Slide 5: HVAB: lever towards less volatile earnings while increasing profitability
HVAB: LEVER TOWARDS LESS VOLATILE EARNINGS WHILE INCREASING PROFITABILITY Divestment of distribution business in France, the UK, EBITDA before MSE*) development by business the Netherlands and Belgium significantly strengthens focus 500 HVAB in €m on HVAB 400 SSC in €m Transaction considerably red
Slide 6: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 6 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 7: Solid operating performance
SOLID OPERATING PERFORMANCE Our net working capital management EBITDA before material special effects of €42m despite ongoing challenging macro environment in Europe ~1.300 ~1,200 Operating cash flow negative due to qoq NWC build up after positive cash flow generation in each quarter of 2023 C
Slide 8: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross profit margin 1,840 311 1,754 1,756 1,737 296 297 282 1,606 269 1,139 1,087 1,091 1,044 1,026 16,9 16,9 16,7 17,1 16,0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Shipments (Tto) Sales (€m) G
Slide 9: EBITDA in Q1 2024
EBITDA IN Q1 2024 Generated EBITDA before material special effects of €42m in Q1 2024 despite ongoing challenging -5 2 market environment -17 Positive volume effect of €2m and negative price -9 effect of €17m 0 -4 70 OPEX in Q1 2024 €9m higher yoy 65 Minor F/X effects 42 37 Negative materi
Slide 10: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q1 2024 (€m) EBITDA reported of €37m 37 Net working capital increased by €50m -50 Cash flow from operating activities of €-44m -13 -44 -6 -67 Net CAPEX of €23m -12 Free cash flow accordingly €-67m -23 EBITDA Change in Interest Taxes Other Cash N
Slide 11: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 11 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 12: Region specific business outlook 2024
REGION SPECIFIC BUSINESS OUTLOOK 2024 North America +0-2% Real steel Construction Manufacturing, Transportation Household & Energy demand industry machinery & mechanical Commercial industry engineering Appliances Europe +0-1% 12 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conferenc
Slide 13: Outlook
OUTLOOK Q2 Considerable increase of Shipments and Sales expected (qoq) EBITDA before material special effects expected to come in between €30-70m 2024 Positive cash flow from operating activities in first half of the year anticipated Shipments and Sales expected to increase considerably yoy
Slide 14: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 14 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 15: Quarterly and FY results
QUARTERLY AND FY RESULTS *) Continuing operations in accordance with IFRS 5. 15 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 16: Segment performance
SEGMENT PERFORMANCE KM Americas Shipments (Tto) Sales (€m) EBITDA (€m) +19.2% +10.9% 714 1,030 1,016 65 669 655 46 45 43 956 599 598 929 930 31 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 KM Europe Shipments (Tto) Sales (€m)
Slide 17: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 48%, gearing*) of 47% and leverage of 4.7x Assets Equity & Liabilities 3,867 3,867 3,631 3,631 1.132 1.142 1.755 1.727 45% 48% 1.400 1.385 928 871 25 773 27 683 920 765 407 155 84 100 476 241 Dec 31, 2023 Mar 31, 2024 Dec 31, 2023 Mar 31, 2024 Non
Slide 18: Maturity profile
MATURITY PROFILE Facility Committed Drawn amount €m Mar 31, 2024 (€m) Mar 31, 2024 Mar 31, 2024 Dec 31, 2023 Adjusted equity4) 1,674 Syndicated Loan1) 400 70 155 Net Debt 790 ABS Europe2) 300 84 98 Gearing5) 47% ABL USA 601 407 407 Leverage6) 4.7x Bilateral Facilities3) 235 174 137 Leases 139 139 13
Slide 19: Sales by markets, products and industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 2% 1% 9% 8% 16% 5% 8% 28% 9% 10% 54% 54% 9% 28% 20% 13% 26% North America Flat products Construction Germany/Austria Long products Manufacturing, Machinery, Mechanical Engineering Aluminum Transportation
Slide 20: Share price performance in Q1 2024
SHARE PRICE PERFORMANCE IN Q1 2024 115% 110% 105% The share price of Klöckner & Co demonstrated stable development through the first quarter of 2024 It reached its peak on February 12 with €7.01 100% Subsequently, it gradually declined and went out of trading at €6.75 on March 28 95% 90% Jan-2
Slide 21: Dividend policy
DIVIDEND POLICY In general, Klöckner & Co SE follows a dividend policy of distributing Due to earnings no dividend payment neither in 2011, 30% of net income before special items. 2012 and 2013 nor in 2015 Given the volatility of our business model, a sustainable dividend Full distribution of ne
Slide 22: Our ambitious climate targets
OUR AMBITIOUS CLIMATE TARGETS 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 22 Klöckner & Co SE | Q1 2024 R
Slide 23: Nexigen steel categorization
23 NEXIGEN® STEEL CATEGORIZATION Six categorizations for transparent carbon emissions We have developed a categorization for CO2-reduced steel so that customers can directly see the carbon footprint of their purchased product. Emission in kg CO2 / t steel LEADING THE SUSTAINABILITY TRANSFORMATION Me
Slide 24: A comprehensive approach: Nexigen categorizations for stainless steel & aluminum
A COMPREHENSIVE APPROACH Nexigen® categorizations for stainless steel & aluminum Stainless Steel Emission in kg CO2 / t stainless steel Aluminum Emission in kg CO2 / t aluminum 24 Klöckner & Co SE | Q1 2024 Results | Analysts’ and Investors’ Conference
Slide 25: Financial calendar
FINANCIAL CALENDAR May 23, 2024 Annual General Meeting 2024 Fabian Joseph August 1, 2024 Half-yearly financial report 2024 Head of Investor Relations +49 203 307-2291 November 6, 2024 Q3 quarterly statement 2024 fabian.joseph@kloeckner.com www.kloeckner.com 25 Klöckner & Co SE | Q1 2024 Results | An