Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — FY2013 Earnings Presentation
20 slides from Kloeckner &'s earnings presentation, Mar 6, 2014
Slide 1: Klöckner & Co SE FY 2013 Results
Klöckner & Co SE A Leading Multi Metal Distributor Gisbert Rühl FY 2013 Results CEO Press Conference March 6, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of Klöckner & 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: Highlights and update on strategy
Klöckner & Co SE A Leading Multi Metal Distributor Gisbert Rühl Highlights and update on strategy CEO
Slide 4: Agenda
Agenda 01 Highlights and update on strategy 02 Financials 03 Outlook 04 Appendix 4
Slide 5: Improved results despite overall weaker markets due to self-help measures
01 Improved results despite overall weaker markets due to self-help measures • Steel markets once again with disappointing development in 2013; steel distribution market declined by 7% in Europe and was only stable in the US • Turnover decreased by 8.8% to 6.4m To also due to restructuring measures
Slide 6: Restructuring program KCO 6.0 fully implemented
01 Restructuring program KCO 6.0 fully implemented Measures • Total headcount reduction of >2,200 ~~ 1/5 of total workforce • Total site closures 70 ~1/4 ~ of total sites • Total cost reduction of €174m (€131m realized) • Total annual EBITDA-impact of ~€150m (€112m realized) • Reduction of NWC by €1
Slide 7: Additional improvement potential through KCO WIN
01 Additional improvement potential through KCO WIN Measures • Effective sales force management (structured sales-approach, advanced customer segmentation, specific target setting, cross-selling, tracking, incentive-schemes, regular performance reviews) • Improved pricing (price guidance, avoid leak
Slide 8: Further implementation of Klöckner & Co 2020 strategy
Further implementation of “Klöckner & Co 2020” strategy currently focused on 01 operational improvements through KCO WIN and differentiation External & • External growth with focus on higher value-added processing internal growth • Internal growth with focus on US market Growth and optimization Oper
Slide 9: Acquisition of Riedo supports strategy to increase processing
01 Acquisition of Riedo supports strategy to increase processing • Riedo is a leading processor of reinforcement steel in Switzerland • Sales of €140m in 2013 • Highly profitable: EBITDA-margin even higher than Becker Stahl-Service • ~180 employees in three state of the art sites • Extensive value a
Slide 10: Riedo as perfect strategic fit to Swiss subsidiary Debrunner Acifer
01 Riedo as perfect strategic fit to Swiss subsidiary Debrunner Acifer • Riedo is a perfect complementary fit • Extension of geographical reach, customer coverage and products • Strengthening leading market position of KCO for reinforcement steel and systems in Switzerland • Consolidation/closure of
Slide 11: Financials
Klöckner & Co SE A Leading Multi Metal Distributor Gisbert Rühl Financials CEO
Slide 12: Profit & loss 2013
02 Profit & loss 2013 (€m) FY 2013 FY 2012 Sales 6,378 7,388 Gross profit 1,188 1,288 Personnel costs -579 -659 Other operating expenses (net) -485 -569 EBITDA 124 60 Depreciation & Amortization -130 -165 EBIT -6 -105 Financial result -73 -80 EBT -79 -185 Taxes -12 -18 Net income -90 -203 Minorities
Slide 13: Gross profit and EBITDA
02 Gross profit and EBITDA Gross profit* (€m) / Gross-margin* (%) EBITDA* (€m) / EBITDA-margin* (%) 47 50 344 344 43 307 306 40 302 303 305 296 39 288 19.8 2.7 18.7 FY 29 2.5 2.5 2.4 24 2.4 18.6 18.5 +>1%p 22 18.5 1.8 17.5 18.0 18 17.5 FY 1.3 1.3 17.7 17.6 1.0 16.6 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q
Slide 14: Strong balance sheet
02 Strong balance sheet Assets Equity & liabilities 3,880 3,880 3,595 3,595 Non-current assets 1,107 977 Equity 1,502 1,445 39% 40% Inventories 1,254 1,166 Non-current financial liabilities 914 727 Other non-current liabilities 470 350 Trade receivables 787 687 Trade payables Other current assets 12
Slide 15: Outlook
Klöckner & Co SE A Leading Multi Metal Distributor Gisbert Rühl Outlook CEO
Slide 16: General and segment specific business outlook
03 General and segment specific business outlook Europe USA +1-2% GDP +2-3% Construction industry Machinery and mechanical engineering Automotive industry +1-2% Apparent steel demand +3-4% 16
Slide 17: Outlook
03 Outlook • Q1 2014 • Turnover to be sequentially up in Q1 • EBITDA in Q1 expected to come in between €40-50m • FY 2014 • Turnover and sales to be slightly up; decline through restructuring measures expected to be overcompensated by volume growth in remaining sites • EBITDA to be significantly up c
Slide 18: Agenda
Agenda 01 Highlights and update on strategy 02 Financials 03 Outlook 04 Appendix 18
Slide 19: Appendix: Financial calendar and contact details
04 Appendix Financial calendar 2014 May 8, 2014 Q1 interim report 2014 May 23, 2014 Annual General Meeting 2014, Düsseldorf August 7, 2014 Q2 interim report 2014 November 6, 2014 Q3 interim report 2014 Contact details Investor Relations Christian Pokropp, Head of Investor Relations & Corporate Commu
Slide 20: Our Symbol
Our Symbol the eyes the ears looking forward to new developments attentive to customer needs the nose sniffing out opportunities to improve performance the ball the legs symbolic of our role to fetch always moving fast to keep up with and carry for our customers the demands of the customers