Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Shareholder Meeting (May 2017)
20 slides from Kloeckner &'s shareholder meeting presentation, May 12, 2017
Slide 1: Annual General Meeting 2017
Klöckner & Co SE Annual General Meeting 2017 Düsseldorf, May 12, 2017 Gisbert Rühl CEO
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: Significant improvement in earnings in 2016
01 Significant improvement in earnings in 2016 € million 2016 2015 ∆ Shipments (in Tto) 6,149 6,476 -327 Shipments and sales down due to restructuring Sales 5,730 6,444 -714 and market EBITDA 196 24 +172 Best operating income in five years Net income 38 -349 +387 Net income once again positive Cash
Slide 4: Earnings bolstered by predominantly positive market environment for steel in 2016
01 Earnings bolstered by predominantly positive market environment for steel in 2016 • General problem of high global overcapacities however persists • Long-term disparity between supply and demand Demand Prices* Overcapacities Europe +2% +70% 60-90mt US -4% +50% 30-40mt China +1% +80% 280-330mt Sou
Slide 5: Positive market effects enhanced by strategic decisions
01 Positive market effects enhanced by strategic decisions KLÖCKNER & CO 2020 Pricing tools DIGITALIZATION -23 DIFFERENTIATION Higher margin business PRODUCTS AND SERVICES 123 Central procurement control OPERATIONS 196 GROWTH AND 28 OPTIMIZATION -18 EXTERNAL AND INTERNAL GROWTH 63 86 Market 24 EBITD
Slide 6: Share price does not reflect the improved earnings situation
01 Share price does not reflect the improved earnings situation 170% 160% 150% 140% 130% +25% 120% SDAX ® +20% DAX ® +19% 110% 100% 90% 80% 70% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 No. 6 Annual General Meeting 2017 | K
Slide 7: Implementation of the Klöckner & Co 2020 strategy on target
01 Implementation of the Klöckner & Co 2020 strategy on target KLÖCKNER & CO 2020 Proportion of Group sales generated via digital channels increased DIGITALIZATION from 9% in Q1 2016 to 14% in Q1 2017 DIFFERENTIATION PRODUCTS AND Share of higher value-added products and services increased from SERVI
Slide 8: Digitalization promoted to develop an industry platform for the steel and metal industry
Digitalization is being promoted with the aim of developing an industry platform for the 01 steel and metal industry STEEL DISTRIBUTORS Klöckner & Co Other distributors PRODUCERS/ WHOLESALERS CUSTOMERS OPEN INDUSTRY PLATFORM THIRD-PARTY PROVIDERS Industry 4.0 and others No. 8 Annual General Meeting
Slide 9: The strategic positioning of the industry platform is key
01 The strategic positioning of the industry platform is key • Amazon and Alibaba will prevail as the winners with horizontal, i.e. cross-industry, platforms for standardized products and services • On vertical platforms, established companies like Klöckner can leverage specific industry expertise,
Slide 10: Successful online platforms are growing exponentially
01 Successful online platforms are growing exponentially The platform is initially intended to attract more and more customers, then more and more distributors and third party providers and ultimately more and more suppliers networking effect Online platforms SUPPLIERS Sales DISTRIBUTORS Tradition
Slide 11: The digital transformation of Klöckner takes place in three essential steps
01 The digital transformation of Klöckner takes place in three essential steps Suppliers Klöckner & Co Customers OPEN INDUSTRY PLATFORM Value Industry platform • Marketplace for complementary products Service platform • Marketplace for steel and metal products Digital tools • Kloeckner Connect • Mar
Slide 12: kloeckner.i driving the digital transformation
01 kloeckner.i driving the digital transformation Founded as a dedicated startup (digital lab) in Berlin in 2014 Over 40 digital experts in Innovation & Product, Software Development, Digital Marketing & Sales and Business Intelligence & Analytics Application of innovative startup methods such as de
Slide 13: Initiatives and tools support the cultural change required for digital transformation
01 Initiatives and tools support the cultural change required for digital transformation Digital enabling of employees through online courses during working hours; the courses are developed specifically to suit Klöckner’s needs Non-hierarchical communication solves the problem of interruptions in ho
Slide 14: Comprehensive rollout of service platform and digital tools by the end of 2017
01 Comprehensive rollout of service platform and digital tools by the end of 2017 Service platform launched Implementation in 2017 Contract portal launched Implementation in 2017 Online shop launched Implementation in 2017 Order transparency tools launched Implementation in 2017 No.14 Annual General
Slide 15: Expansion of higher margin business to more than 50% already by 2018
01 Expansion of higher margin business to more than 50% already by 2018 2 0 1 8 TAR G E T <20% conventional >20% • Expansion of 3D tube laser centers in the UK and Germany services higher value- added products • Second largest 3D laser center in UK with seven 3D lasers at 2017 year-end Expansion fro
Slide 16: Further increasing profitability through harmonized European organization
01 Further increasing profitability through harmonized European organization • Realization of additional synergies, especially in purchasing and logistics • Intensified best-practice sharing • Centrally managed implementation of the Klöckner & Co 2020 strategy 2017 €3m €10m Total annual effect of 20
Slide 17: Successful beginning of the year with a sharp rise in sales and earnings
01 Successful beginning of the year with a sharp rise in sales and earnings in the first quarter € million Q1 2017 Q1 2016 ∆ Shipments (in Tto) 1,582 1,556 +26 Shipments up despite Spain sale Sales 1,602 1,386 +216 Sales up due to high price level EBITDA 77 16 +61 Best quarterly result in six years
Slide 18: Positive outlook also for second quarter and the full year
01 Positive outlook also for second quarter and the full year • Seasonal increase in sales Q2 2017 EBITDA between €60 million and €70 million • Higher sales due to an increase in demand and a higher average steel price FY 2017 EBITDA up by at least 10% compared to last year (€196 million) No. 18 Ann
Slide 19: Klöckner & Co SE
Klöckner & Co SE Annual General Meeting 2017 Düsseldorf, May 12, 2017
Slide 20: Slide 20