Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q1 2025 Earnings Presentation
34 slides from Kloeckner &'s earnings presentation, May 7, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results Analysts’ and Investors’ Conference Call Guido Kerkhoff | CEO Dr. Oliver Falk | CFO John Ganem | Member of the Management Board May 7, 2025
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of In addition to the key figures prepared in accordance with IFRS and German-GAAP respectively, Klöckner & Co SE is Klöckner & Co SE with respect to future events. They generally are d
Slide 3: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 3
Slide 4: Highlights of Q1 2025
Highlights of Q1 2025 Q1 2025 Q1 2024 Delta Slight increase yoy driven by strong development of Kloeckner Metals Americas; Shipments (Tto) 1,170 1,139 +2.7% Kloeckner Metals Europe with negative volume development Slight decrease yoy despite increased shipments as a result of lower average price Sal
Slide 5: Segment performance
Segment performance KM Americas Shipments (Tto) Sales (€m) EBITDA*) (€m) +5.9% -4.2% 48 714 741 724 757 665 43 41 42 1,030 1,050 972 987 865 28 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 KM Europe Shipments (Tto) Sales (€m)
Slide 6: Developing from a steel distribution company to a metal processor
Developing from a steel distribution company to a metal processor Sharpened regional and business focus Sales split Our achievements Financial Stabilization 19% Further de-risked the balance sheet: Pensions paid and equity 37% ratio at a consistently strong level 41% SC +10%p 31% Portfolio optimizat
Slide 7: Key priority: Expanding our higher value-added business and service center business
Key priority: Expanding our higher value-added business and service center business Lever towards increasing profitability while reducing underlying volatility What is higher value-added business (HVAB) and service center business (SC)? • HVAB: Metal products, which are extensively processed or fabr
Slide 8: Klöckner & Co: Leveraging Strengths - Step Up 2030
Klöckner & Co: Leveraging Strengths - Step Up 2030 Entering a new strategic chapter: Step Up 2030 Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 8
Slide 9: Klöckner & Co: Leveraging Strengths - Step Up 2030
Klöckner & Co: Leveraging Strengths - Step Up 2030 Entering a new strategic chapter: Step Up 2030 Operational Excellence Strategic Partnerships Providing the most efficient solutions and best services to Strengthening relationships with strategic partners integrate seamlessly into value chains of cu
Slide 10: Our 2030 targets
Our 2030 targets Becoming the leading service center and metal processing company in North America and Europe, with one of the highest profitability levels in the industry Through the cycle Through the cycle Sales growth annual EBITDA in EBITDA margin of ROCE >10% above market the mid-three- >5% dig
Slide 11: Strengthening our focus on strong future industries
Strengthening our focus on strong future industries Enhancing manufacturing expertise and industry focus across Europe and North America Germany Agreed to acquire Ambo-Stahl in Cologne to enhance capabilities in specialized steel processing Strengthening our presence in the sectors of defense an
Slide 12: Local for local business in North America
Local for local business in North America Benefiting from the ongoing nearshoring trend Sourcing by region Sales by region US US ~1% Sold within the US ~3% Sourced within the US Other Other ~97% ~99% Mexico Mexico Sourced within Mexico ~5% Sold within Mexico ~30% US US ~45% Other ~25% ~95% Klöckner
Slide 13: Local for local business in Europe
Local for local business in Europe Limited direct impact of US tariffs as most sourcing and selling is done locally Sourcing by region Sales by region Germany Germany KMG Becker KMG Becker ~6% <5% ~3% <5% 25% ~44% ~45% ~50% ~50% ~70% ~97% Sourced within Germany EU Non-EU Sold within Germany EU Non-E
Slide 14: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 14
Slide 15: Our net working capital management
Our net working capital management Solid first quarter EBITDA performance in line with guidance ~1,200 ~-39% ~1,000 Committed to a strong “through the cycle performance”, fostering ~930 ~+37% upside risks and mitigating downside risks ~750 Achieved EBITDA before material special effects of €42m
Slide 16: Shipments, sales and gross profit development
Shipments, sales and gross profit development Shipments & sales Gross profit & gross profit margin 1,765 317 1,737 1,646 1,666 297 294 1,484 262 261 1,164 1,170 1,139 1,122 1,027 17.1 17.6 19.0 16.6 15.9 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Shipments (Tto)
Slide 17: EBITDA development
EBITDA development EBITDA (€m) in Q1 2025 EBITDA before material special effects in Q1 2025 of €42m; constant yoy 5 Positive volume effect of €8m and price effect of €5m 8 -18 5 OPEX higher €18m yoy Positive F/X effects of €5m yoy -23 Material special effects mainly related to the final de
Slide 18: Cash flow and net debt development
Cash flow and net debt development Cash flow Q1 2025 (€m) 18 EBITDA reported of €18m Net working capital increased by €124m -124 Cash flow from operating activities of €-118m -118 Net Capex of €23m -141 Free cash flow accordingly €-141m -10 3 -5 -23 EBITDA Change in NWC Interest Taxes Othe
Slide 19: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 19
Slide 20: Region specific business outlook 2025
Region specific business outlook 2025 Real steel Construction Manufacturing, Transportation Household & Energy demand Industry Machinery & Commercial Industry Mech. Eng Appliances North America 0% to +1% Europe 0% to +1% Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 20
Slide 21: Outlook
Outlook Q2 Considerable increase in sales and constant development of shipments expected (qoq) 2025 EBITDA before material special effects expected to come in between €60-90m Shipments and sales expected to increase considerably yoy FY EBITDA before material special effects expected to incre
Slide 22: Q&A session
Q&A session Guido Kerkhoff Dr. Oliver Falk John Ganem CEO CFO CEO Americas Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 22
Slide 23: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference 23
Slide 24: Quarterly and FY results
Quarterly and FY results Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY FY (€m) 2025 2024*) 2024*) 2024*) 2024*) 2023*) 2023*) 2023*) 2023*) 2024*) 2023*) 2022*) 2022 2021 2020 Shipments (Tto) 1,170 1,027 1,122 1,164 1,139 1,026 1,091 1,044 1,087 4,453 4,248 4,193 4,629 4,881 4,873 Sales 1,666 1,484 1,64
Slide 25: Balance sheet development
Balance sheet development Equity ratio of 46%, gearing*) of 58% and leverage of 6.7x Assets (€m) Equity & Liabilities (€m) 3,538 3,494 3,538 3,494 1,282 1,168 1,721 1,592 49% 46% 1,291 1,247 896 999 19 17 722 877 644 670 122 121 90 112 258 216 Dec. 31, 2024 Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2025
Slide 26: Developing from a steel distribution company to a metal processor
Developing from a steel distribution company to a metal processor Adapting to the significantly altered business environments with sharpened strategic focus to ensure sustainable growth, mitigate risks and maintain competitiveness in dynamic market landscape Service center business and especially
Slide 27: Sales by markets, products and industries
Sales by markets, products and industries Sales by markets Sales by products Sales by industries 1% 1% 9% 7% 16% 8% 5% 28% 8% 11% 10% 56% 24% 59% 21% 11% 25% North America Flat products Long products Construction Germany/Austria Manufacturing, Machinery, Mechanical Engineering Switzerland Aluminum S
Slide 28: Share performance in Q1 2025
Share performance in Q1 2025 180% The share price of Klöckner & Co 170% demonstrated strong development 160% through the first quarter of 2025 150% It reached its peak level of €7.92 on March 19, 2025 140% 130% Subsequently, the share price gradually declined and went out of trading at 120% €7
Slide 29: Maturity profile
Maturity profile Facility Committed Drawn amount €m Mar 31, 2025 (€m) Mar 31, 2025 Mar 31, 2025 Dec 31, 2024 Adjusted equity4) 1,583 Syndicated Loan1) 350 141 173 Net Debt 914 ABS Europe2) 300 85 30 Gearing5) 58% ABL USA 601 362 375 Leverage6) 6.7x ABL Mexico 106 69 48 Syndicated Loan CH3) 210 152 8
Slide 30: Dividend policy
Dividend policy In general, Klöckner & Co SE follows a dividend policy of distributing 30% Due to earnings-related reasons, no dividend payment in 2011, of net income before special items. Given the volatility of our business 2012, 2013 and 2015 model, a sustainable dividend payment cannot be guar
Slide 31: Our ambitious climate targets
Our ambitious climate targets Our net zero carbon targets have been approved as science-based targets by the Science Based Targets initiative (SBTi) Scope 1 & 2 Scope 3 Scope 3 Own direct and Under direct Not under direct indirect emissions influence influence 62.5% reduction 50% reduction 30% reduc
Slide 32: Nexigen Steel Categorization
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 LEADING THE SUSTAINABILITY TRANSFORMATION Metho
Slide 33: A comprehensive approach: Nexigen categorizations for stainless steel & aluminum
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 Klöckner & Co SE | Q1 2025 Results | Analysts’ and Investors’ Conference
Slide 34: Financial calendar
Financial calendar May 28, 2025 Annual General Meeting 2025, Fabian Joseph Düsseldorf Head of Investor Relations August 6, 2025 +49 211 88245-488 Half-yearly financial report 2025 fabian.joseph@kloeckner.com November 5, 2025 www.kloeckner.com Q3 quarterly statement 2025 Klöckner & Co SE | Q1 2025 Re