Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — FY2022 Earnings Presentation
29 slides from Kloeckner &'s earnings presentation, Mar 9, 2023
Slide 1: FY 2022 Results
FY 2022 RESULTS Analysts’ and Investors’ Conference March 9, 2023 Guido Kerkhoff | CEO Dr. Oliver Falk | CFO John Ganem | Member of the Management Board Bernhard Weiß | 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 | FY 2022 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of FY 2022
HIGHLIGHTS OF FY 2022 FY 2022 FY 2021 Slight decline due to disciplined margin-over-volume strategy in the Shipments (Tto) 4,679 4,881 -4.1% beginning of 2022 and negative macroeconomic environment in H2 2022 Sales (€m) 9,379 7,441 +26.0% Considerable increase yoy as a result of higher average price
Slide 5: Substance and profitability basis significantly strengthened
SUBSTANCE AND PROFITABILITY BASIS SIGNIFICANTLY STRENGTHENED Proof points of our strong performance over the last two years: Generated exceptional EBITDA rep. of in total ~€1.4bn Increased equity by nearly 90% Reduced pension provisions from €288m to €38m Generated OCF of €342m before pension fundin
Slide 6: We've come a long way in 2022
We’ve come a long way in 2022 – Building sustainable business models for our customers World's first company with Introduction of our CO2- Launch of Nexigen® and net zero target approval of SBTi reduced steel categorization introduction of categorizations to new standards for CO2-reduced stainless s
Slide 7: Accelerating further in 2023: Nexigen PCF Algorithm
Accelerating further Launch of innovative Nexigen® PCF Algorithm in 2023 Individualized Product Carbon Footprints (PCF) Offering our customers individualized PCFs for nearly all 200,000 products; for gray and CO2-reduced products Complete emissions Managing high complexity; from cradle until the
Slide 8: New growth platform in North America – acquisition of National Material of Mexico
NEW GROWTH PLATFORM IN NORTH AMERICA – ACQUISITION OF NATIONAL MATERIAL OF MEXICO Transaction overview Purchase price of USD340m on cash and debt free basis EV-multiple of ~6.7 based on expected 2022 EBITDA; representing a highly attractive expansion of our activities NMM employs around 500 pe
Slide 9: Creating value through leveraging strategic fit
CREATING VALUE THROUGH LEVERAGING STRATEGIC FIT Acquisition immediately value-accretive and provides growth platform while capitalizing on accelerating onshoring trend Significant Supplying Significantly increasing exposure to key automotive and industrial end cross-selling electrical markets in
Slide 10: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 10 Klöckner & Co SE | FY 2022 Results | Analysts’ and Investors’ Conference
Slide 11: Higher highs and higher lows – strong performance through the trough
HIGHER HIGHS AND HIGHER LOWS – STRONG PERFORMANCE THROUGH THE TROUGH High quality net working capital management Committed to a strong “through the cycle performance” ~1,600 ~1,600 FY 2022 marks further proof point of smart NWC management and Kloeckner’s “Higher Highs and ~1,300 Higher Lows”-per
Slide 12: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 2,580 508 2,438 482 2,367 439 2,030 1,993 305 269 1,257 1,226 1,108 1,148 1,047 21.6 19.8 19.7 12.9 13.5 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021* Q1 2022 Q2 2022 Q3 2022 Q4 2022 Shipments (Tto) Sales (€m) Gross m
Slide 13: EBITDA in Q4 and FY 2022
EBITDA (€M) IN Q4 AND FY 2022 -24 171 Strong operating result in FY 2022 due to smart NWC -163 management and consistent margin-over-volume strategy -12 -22 at the beginning of the year despite overall challenging 11 -6 environment in 2022 EBITDA Volume Price OPEX EBITDA Material EBITDA Q4 2021 ef
Slide 14: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow FY 2022 (€m) 100 -30 EBITDA of €481m -99 -47 -34 NWC decrease of €100m; strict NWC management initiatives 481 405 371 Strong and significantly positive cash flow from operating activities of €405m EBITDA FY 2022 Change in NWC Interest Taxes Other Ca
Slide 15: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 51%, gearing* of 30% and leverage of 1.4x Assets Equity & Liabilities 3,878 3,859 3,878 3,859 1,099 1,033 1,827 1,968 47% 51% 1,716 1,633 817 760 50 38 940 844 785 941 64 58 179 73 340 309 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Non-cu
Slide 16: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 16 Klöckner & Co SE | FY 2022 Results | Analysts’ and Investors’ Conference
Slide 17: Region specific business outlook 2023
REGION SPECIFIC BUSINESS OUTLOOK 2023 Europe +1-2% Real steel Construction Manufacturing, Energy Automotive Shipbuilding demand industry machinery & mechanical industry industry engineering, etc. North America +1-2% 17 Klöckner & Co SE | FY 2022 Results | Analysts’ and Investors’ Conference
Slide 18: Outlook
OUTLOOK Considerable increase of shipments and sales expected (qoq) Q1 EBITDA before material special effects expected to increase very considerably qoq; expectation of €40-90m before material special effects 2023 Low double-digit (€m) negative material special effects expected, mainly from gr
Slide 19: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 19 Klöckner & Co SE | FY 2022 Results | Analysts’ and Investors’ Conference
Slide 20: Quarterly and FY results
QUARTERLY AND FY RESULTS Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2022 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2022 2021 2020 2019 2018 Shipments (Tto) 1,047 1,148 1,226 1,257 1,108 1,190 1,295 1,287 1,195 1,242 1,070 1,365 4,679 4,881 4,873 5,648 6,107 Sales 1,993 2,36
Slide 21: Segment performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA*) (€m) -6.2% -9.5% 586 588 101 561 1,216 1,148 1,158 80 537 72 1,000 504 905 38 4 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 KM EU Shipments (Tto) Sales (€m) EBITD
Slide 22: Maturity profile
MATURITY PROFILE Facility Committed Drawn amount €m Dec 31, 2022 (€m) Dec 31, 2022 Dec 31, 2022 Dec 31, 2021 Adjusted equity5) 1,955 Syndicated Loan 250 25 36 Net Debt 584 ABS Europe1) 300 159 189 Gearing6) 30% ABL USA2) 609 155 240 Leverage7) 1.4x Convertible 20163) 141 139 142 Bilateral Facilities
Slide 23: Sales by markets, products and industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 3% 3% 1% 8% 9% 5% 2% 8% 11% 14% 31% 7% 47% 51% 12% 10% 27% 13% 14% 24% USA Flat products Construction Germany/Austria Long products Manufacturing, Machinery, Mechanical Engineering Switzerland Aluminum T
Slide 24: Share price performance in FY 2022
SHARE PRICE PERFORMANCE IN FY 2022 130% 120% 110% The capital market environment remained volatile throughout 2022 100% The share price of Klöckner & Co reached its highest level of €13.30 on March 25 90% Thereafter, the share price decreased reaching its lowest level of €6.93 on October 12 80
Slide 25: Dividend policy
DIVIDEND POLICY In general, Klöckner & 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 26: 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 Carbon neutral from now on In a
Slide 27: Customer-centric metric for CO2-reduced steel and launch of Nexigen brand
LEADING THE SUSTAINABILITY TRANSFORMATION: INTRODUCTION OF A CUSTOMER- CENTRIC METRIC FOR CO2-REDUCED STEEL AND LAUNCH OF NEXIGEN® BRAND OUR AMBITION 2025-2030 Separate category for “balanced” CO2-reduced steel along international standards 50% 30% Methodology along international standards Emissions
Slide 28: Categorization for stainless steel & aluminum
COMPREHENSIVE APPROACH: CATEGORIZATION FOR STAINLESS STEEL & ALUMINUM Values in kg CO2e/t finished steel product Methodology along Emissions from raw No offsetting included Separate category for “balanced” CO2-reduced steel international standards material to production in CO2 load categorization Em
Slide 29: Financial calendar and investor relations contact
Felix Schmitz FINANCIAL CALENDAR Head of Investor Relations | May 3, 2023 Head of Strategic Sustainability Q1 quarterly statement 2023 +49 203 307-2295 May 17, 2023 felix.schmitz@kloeckner.com Annual General Meeting 2023 www.kloeckner.com August 2, 2023 Half-yearly financial report 2023 October 31,