Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q2 2022 Earnings Presentation
27 slides from Kloeckner &'s earnings presentation, Aug 3, 2022
Slide 1: Your partner for a sustainable tomorrow
Your partner for a sustainable tomorrow Analysts’ and Investors’ Conference August 3, 2022 Guido Kerkhoff | CEO Dr. Oliver Falk | CFO John Ganem | Member of the Management Board Bernhard Weifs | Member of the Management Board
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: 2. Financials, 3. Outlook, 4. Appendix
2. Financials 3. Outlook 4. Appendix Klackner & Co SE | Q2 2022 Results | Analysts and Investors’ Conference
Slide 4: Highlights of Q2 2022
HIGHLIGHTS OF Q2 2022 922022 [QaR0RI) Delis Down yoy due to macro environment and margin-over-volume strategy at Shipments (Tto) 1,226 1295 “5.3% the beginning of the quarter; slightly down qoq (-2.5%) Sales (€m) 2,580 1,847 +39.7% Considerable increase due to higher price level Gross profit (€m) 50
Slide 5: Strengthening partnership with Nucor with on-campus facility in Brandenburg, KY
Strengthening partnership with Nucor with on-campus facility at new mill in Brandenburg, KY* Investments are focused on developing sustainable, innovative and complex supply chain solutions for the end markets of renewable energy infrastructure, off-highway equipment, and industrial machinery & equi
Slide 6: Launching Becker Stainless Steel
LAUNCHING BECKER STAINLESS STEEL Leveraging our Assets = Extended strategic positioning of Becker Stahl-Service, the most modern service center in Europe, as multi metals supplier = Entering highly attractive stainless steel business and significantly expanding product and service portfolio; now pro
Slide 7: Pioneering in digitalization and sustainability
PIONEERING IN DIGITALIZATION AND SUSTAINABILITY Progress on digitalization and automation Offering and further developing extensive Sustainability Advisory Services (SAS) = Digital sales share at high level of 45%, flat yoy = Dedicated and specially qualified Green Steel Experts across " Kloeckner A
Slide 8: 1. Highlights and update on strategy
1. Highlights and update on strategy 3. Outlook 4. Appendix Klackner & Co SE | Q2 2022 Results | Analysts! stors’ Conference
Slide 9: Strong through the cycle performance
STRONG THROUGH THE CYCLE PERFORMANCE High quality net working capital management ~2,100 [-1200} 271 277 262 Q12021 Q22021 Q32021 as O42021_= Q12022__= Q22022 I EBITDA bef. mat. sp. effects in €m 140 MB NW in€ém Oper. CF excl. pension funding in €m Hl HRC Us in USD (indicative) -261 HRC Europe in € (
Slide 10: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 542 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q22021* Q3 2021* Q4 2021" Q1 2022 Q2 2022 IM Shipments (Tto) Il Sales (€m) IM Grossmargin (%) Ill Gross profit (€m) *) Beforematerialspecialeffects. 10 Klackner & Co SE | Q2 20
Slide 11: EBITDA development
EBITDA DEVELOPMENT EBITDA (€m) in Q2 2022 = Strong operating result in Q2; down yoy due to unprecedented price dynamics in Q2 2021 = Negative volume effect mainly due to macro environment in combination with consistent margin-over-volume strategy = Negative price effect due to less pronounced price
Slide 12: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q2 2022 (€m) 262 EBITDA Change Interest Taxes = Other Cashflow Net —_—Free cash 22022 inNWC from Capex _ flow Q2 reported operating 2022 activities Net financial debt 06.2022 vs. 03.2022 (€m) Net debt Net debt 03.2022 _Free cash flow Leasing Dividend F/X,
Slide 13: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 45%, gearing’ of 44% and leverage of 1.0x 4,665 3,878 1,052 1,099 2,006 1,716 225 58 64 Dec 31, 2021 Jun 30, 2022 Dec 31, 2021 Jun 30, 2022 HM Non-current assets MI Trade receivables") II Liquidity TM Equity I Pensions Hl Other liabilities Invento
Slide 14: 2. Financials
1. Highlights and update on strategy 2. Financials 4. Appendix Klackner & Co SE | Q2 2022 Results | Analysts! stors’ Conference
Slide 15: Strongest first-half-EBITDA since IPO in 2006
Strongest first-half-EBITDA since IPO in 2006 Proving high performance through the cycle, now translating into strong cash flows Fostering upside risks and mitigating downside risks with smart NWC management Rock solid balance sheet and operating profitability improved Well prepared for inflationary
Slide 16: Region specific business outlook 2022
16 _Kléckner & Co SE | Q2 2022 Results| Analysts REGION SPECIFIC BUSINESS OUTLOOK 2022 Europe | ©} © O es I Tt: Aa +t Real steel Construction Manufacturing, Energy Automotive demand industry machinery & mechanical industry industry engineering, etc. ~~ Oo 0 8 © © & Shipbuilding Se)
Slide 17: Outlook
OUTLOOK Q3 2022 FY 2022 7 Kldckner & Co SE | Q2 2022 Results | Analysts’ and Investors’ Conference Shipments expected to slightly increase (qoq); price-driven sales decline expected (qoq); EBITDA before material special effects down qoq due to macro environment and negative price dynamics; expectati
Slide 18: 4. Appendix
1. Highlights and update on strategy 2. Financials 3. Outlook Klackner & Co SE | Q2 2022 Results | Analysts! stors’ Conference
Slide 19: Quarterly and FY results
QUARTERLY AND FY RESULTS (em) Qe 4 Qe a a4 a a4 Q Q2 Qi FY FY FY FY FY 2022 2022 2021_~——2021_~——2021_~——2021_~——-2020 2020. 2019 2019 2019-2019 _| 2021 2020. 201920182017 Shipments (Tto) 12261257 1,108 1,190,295 1,287 1,195 1,070 1365 «1,250,420. «1,479 1,499 | 4,881 4,873 5,648 = 6,107,135 Sales 2
Slide 20: Segment performance
20 SEGMENT PERFORMANCE KMUS Shipments (Tto) 633 | 609 586 588 Qz2z021Q32021_Q42021_QIZ02z2 _Qaz02z2 KM EU Shipments (Tto) 482 + 451 454 0 396 396 5 Lt 22021 Q3z021_Q42021_ QIZ0Zz2 —_QzzZ022 KM Non-EU Shipments (Tto) am 185 150 184 Q2z021 Q32021 Q42021 QIZ022 —Qz22022 Sales (€m) EBITDA’) (€m) 1216 ic
Slide 21: Maturity profile
MATURITY PROFILE Faclity Committed ém (€m) Jun 30,2022 | jun 30,2022 | Dec 31,202 Adjusted equity) 2,055 Syndicated Loan 250 Net Debt 903 1) ABS Europe 300 268 189 Gearing®) 44% ABL USA?) 433 288 240 Leverage®) 1.0x Convertible 2016 148 144 142 Bilateral Facilities?) 192 157 57 [SES ”™ ”™ 156 Maturi
Slide 22: 1% 4% 4% 9% 6% 2% 8% 6% 7% 8% 14% 8% 46% 51%
1% 4% 4% 9% 6% 2% 8% 6% 7% 8% 14% 8% 46% 51% 38% 10% 9% 25% 14% 30%
Slide 23: Share price performance in Q2 2022
SHARE PRICE PERFORMANCE IN Q2 2022 120% 110% 100% 90% 80% 70% 60% 50% Apr-22 May-22 Jun-22 —KCO ——SDAX —=DAX 23. Kléckner & Co SE | Q22022 Results| Analysts’ and Investors’ Conference Due to the ongoing war in Ukraine and the monetary policy change of central banks, the capital market environment re
Slide 24: Dividend policy
DIVIDEND POLICY In general, Kl6ckner & 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: Leading the sustainability transformation
LEADING THE SUSTAINABILITY TRANSFORMATION * Concrete reduction measures identified, implementation already started kloeckner takes gf) AD) Bienes " Scope 1 & 2 emissions below 1% of overall Scope 1-3 emissions action 2040 TARGETS * In addition to reduction measures, compensation of DDAWING AMBITIOUS
Slide 26: Introduction of a customer-centric metric for CO2-reduced steel
LEADING THE SUSTAINABILITY TRANSFORMATION - INTRODUCTION OF A CUSTOMER- CENTRIC METRIC FOR CO,-REDUCED STEEL Five categories differ by carbon load One category differs by method Our ambition Carbon load thresholds (in kg CO,e/t finished steel product) 2025 Of 2030 9 SHIPMENTS Start Step Pro Prime (+
Slide 27: Your partner for a sustainable tomorrow
os Your partner for a kléckner & co sustainable tomorrow Felix Schmitz Head of Investor Relations | Head of Strategic Sustainability & +49 203 307-2295 B& felix.schmitz@kloeckner.com @® www.kloeckner.com 27 Kléckner & Co SE | Q22022 Results| Analysts’ FINANCIAL CALENDAR November 3, 2022 Q3 quarterly