Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q3 2023 Earnings Presentation
25 slides from Kloeckner &'s earnings presentation, Oct 31, 2023
Slide 1: Q3 2023 Results
Q3 2023 RESULTS Analysts’ and Investors’ Conference Call October 31, 2023 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 | Q3 2023 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q3 2023
HIGHLIGHTS OF Q3 2023 Q3 2023 Q3 2022 Slightly above prior year quarter supported by NMM acquisition and despite Shipments (Tto) 1,191 1,148 +3.7% challenging market environment, especially in Europe Sales (€m) 1,929 2,367 -18.5% Decrease due to considerably lower average price level yoy Gross profi
Slide 5: Strategy Progress in a Demanding Market Environment
STRATEGY PROGRESS IN A DEMANDING MARKET ENVIRONMENT Successful transactions to increase Executing European Efficiency Investment dedicated to HVAB in HVAB exposure Program Switzerland Integration of HVAB pure play NMM Reducing number of FTEs of European Invested in state-of-the-art into KMM; s
Slide 6: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 6 Klöckner & Co SE | Q3 2023 Results | Analysts’ and Investors’ Conference
Slide 7: Solid Operating Performance and Positive Cash Generation
SOLID OPERATING PERFORMANCE AND POSITIVE CASH GENERATION Our net working capital management Achieved solid operating result in Q3 2023 and once again, a positive operating cash flow despite an ongoing ~1,300 challenging market environment ~970 Mitigated large parts of negative price risks during
Slide 8: Shipments, Sales and Gross Profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 2,367 357 335 2,076 314 1,993 305 1,967 1,929 269 1,213 1,191 1,148 1,158 1,047 17.2 17.0 16.3 12.9 13.5 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Shipments (Tto) Sales (€m) Gross pr
Slide 9: EBITDA (€m) in Q3 2023
EBITDA (€M) IN Q3 2023 7 Solid EBITDA-performance despite challenging market -4 environment 17 Negative volume effect of €-10m (excl. KMM) largely EU- Europe 41 Positive price effects of €16m OPEX down, mainly driven by lower personal expenses & 16 -10 shipping costs and lower consulting exp
Slide 10: Cash Flow and Net Debt Development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q3 2023 (€m) 24 -14 EBITDA reported of €41m -15 41 36 NWC decrease of €24m Strong cash flow from operating activities of €36m -340 -304 Net CAPEX €340m (thereof NMM €310m net) Free cash flow accordingly of €-304m EBITDA Change Interest Taxes Cas
Slide 11: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 11 Klöckner & Co SE | Q3 2023 Results | Analysts’ and Investors’ Conference
Slide 12: Region Specific Business Outlook 2023
REGION SPECIFIC BUSINESS OUTLOOK 2023 North America +0-2% Real steel Construction Manufacturing, Transportation Household & Energy demand industry machinery & mechanical Commercial industry engineering Appliances Europe -2-0% 12 Klöckner & Co SE | Q3 2023 Results | Analysts’ and Investors’ Conferenc
Slide 13: Outlook
OUTLOOK Shipments expected to increase slightly yoy; sales expected to be below prior-year due to lower FY overall price level EBITDA expectation of €170-200m before material special effects 2023 Strong and significantly positive operating cash flow expected 13 Klöckner & Co SE | Q3 2023 Resul
Slide 14: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 14 Klöckner & Co SE | Q3 2023 Results | Analysts’ and Investors’ Conference
Slide 15: Quarterly and FY Results
QUARTERLY AND FY RESULTS Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2023 2023 2023 2022 2022 2022 2022 2021 2021 2021 2021 2022 2021 2020 2019 2018 Shipments (Tto) 1,191 1,158 1,213 1,047 1,148 1,226 1,257 1,108 1,190 1,295 1,287 4,679 4,881 4,873 5,648 6,107 Sales 1,929 1,967 2,076 1,993
Slide 16: Segment Performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA (€m) +19.3% -12.3% 669 1,158 65 599 598 561 1,016 46 45 38 504 905 929 930 4 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 KM EU Shipments (Tto) Sales (€m) EBITDA*) (
Slide 17: Strong and Solid Balance Sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 46%, gearing*) of 49% and leverage of 6.1x Assets Equity & Liabilities 4,214 4,214 3,859 3,859 1,246 1,033 1,953 1,968 46% 51% 1,613 1,633 1,042 760 38 30 940 1,117 785 866 73 179 121 117 308 323 Dec 31, 2022 Sep 30, 2023 Dec 31, 2022 Sep 30, 2023
Slide 18: Maturity Profile
MATURITY PROFILE Facility Committed Drawn amount €m Sep 30, 2023 (€m) Sep 30, 2023 Sep 30, 2023 Dec 31, 2022 Adjusted equity2) 1,890 Syndicated Loan 250 169 25 Net Debt 923 ABS Europe 300 154 159 Gearing3) 49% ABL USA 614 387 155 Leverage4) 6.1x Convertible 2016 - - 139 Bilateral Facilities1) 233 16
Slide 19: 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 20: Share Price Performance in Q3 2023
SHARE PRICE PERFORMANCE IN Q3 2023 105% 100% The share price of Klöckner & Co reached its highest level of 95% €8.87 on July 3. Afterwards the share price decreased before rising again towards the end of July 90% In the beginning of August, the share price decreased sharply and increased again t
Slide 21: 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 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 | Q3 2023 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 Our ambition 2025-2030 LEADING THE SUSTAINAB
Slide 24: A Comprehensive Approach
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 | Q3 2023 Results | Analysts’ and Investors’ Conference
Slide 25: Financial Calendar
FINANCIAL CALENDAR March 13, 2024 Annual Financial Statement 2023 Fabian Joseph May 7, 2024 Head of Investor Relations Q1 quarterly statement 2024 +49 203 307-2291 May 23, 2024 Annual General Meeting 2024 fabian.joseph@kloeckner.com www.kloeckner.com August 1, 2024 Half-yearly financial report 2024