Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q2 2024 Earnings Presentation
26 slides from Kloeckner &'s earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Results
Q2 2024 RESULTS Analysts’ and Investors’ Conference Call August 1, 2024 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 | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q2 2024
HIGHLIGHTS OF Q2 2024 Q2 2024 Q2 2023 Considerably up yoy on Group level driven by strong development of Shipments (Tto) 1,164 1,044 +11.5% Kloeckner Metals Americas Sales constant as a result of lower average price level yoy despite increasing Sales (€m) 1,765 1,754 +0.6% Shipments Gross profit (€m
Slide 5: HVAB: Lever towards less volatile earnings while increasing profitability
HVAB: LEVER TOWARDS LESS VOLATILE EARNINGS WHILE INCREASING PROFITABILITY Continuing to strengthen focus on HVAB EBITDA before MSE*) development by business Divestment of parts of European distribution business 350 considerably reduces dependence on low margin, cyclical 300 HVAB 250 SSC commodity
Slide 6: Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 6 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 7: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 7 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 8: Solid operating performance
SOLID OPERATING PERFORMANCE Our net working capital management Challenging overall market environment during the second quarter with significant steel price correction in US ~1,300 ~1,200 However, achieved EBITDA before material special - ~34% effects of €42m within guidance range and strong ope
Slide 9: Shipments, sales and gross profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross profit margin 1,754 1,756 1,765 296 297 294 1,737 282 1,606 269 1,139 1,164 1,091 1,044 1,026 16.9 16.7 17.1 16.6 16.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Shipments (Tto) Sales (€m) G
Slide 10: EBITDA in Q2 2024
EBITDA IN Q2 2024 Generated EBITDA of €42m in Q2 2024 despite 34 ongoing challenging market environment -38 Positive volume effect of €34m and negative price effect of €38m -19 OPEX in Q2 2024 €19m higher yoy 1 Minor F/X effects 65 42 EBITDA Volume effect Price effect OPEX F/X EBITDA Q2 2023
Slide 11: Cash flow and net debt development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q2 2024 (€m) EBITDA of €42m -13 Net working capital release of €45m 45 -21 8 Other of €8m relate to decrease in VAT receivables and -21 other assets 61 42 41 Positive cash flow from operating activities of €61m EBITDA Change Interest Taxes Other C
Slide 12: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 12 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 13: Region specific business outlook 2024
REGION SPECIFIC BUSINESS OUTLOOK 2024 North America -2%-0% Real steel Construction Manufacturing, Transportation Household & Energy demand industry machinery & mechanical Commercial industry engineering Appliances Europe -2%-0% 13 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Confere
Slide 14: Outlook
OUTLOOK Q3 EBITDA expectation of €20-60m before material special effects 2024 Shipments expected to increase slightly yoy; Sales expected to be below prior-year due to lower FY price level EBITDA expectation of €120-180m before material special effects 2024 Expecting significantly positive o
Slide 15: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 15 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 16: Quarterly and FY results
QUARTERLY AND FY RESULTS *) Continuing operations in accordance with IFRS 5. 16 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 17: Segment performance
SEGMENT PERFORMANCE KM Americas Shipments (Tto) Sales (€m) EBITDA (€m) +23.9% +12.9% 741 714 1,050 65 669 1,016 1,030 655 45 43 41 598 956 930 31 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 KM Europe Shipments (Tto) Sales (€
Slide 18: Strong and solid balance sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 46%, gearing*) of 47% and leverage of 5.4x Assets Equity & Liabilities 3,867 3,867 3,733 3,733 1.132 1.159 1.755 1.720 45% 46% 1.400 1.401 928 909 25 23 773 930 683 825 407 155 133 110 476 256 Dec 31, 2023 Jun 30, 2024 Dec 31, 2023 Jun 30, 2024 No
Slide 19: Maturity profile
MATURITY PROFILE Facility Committed Drawn amount €m Jun 30, 2024 (€m) Jun 30, 2024 Jun 30, 2024 Dec 31, 2023 Adjusted equity4) 1,662 Syndicated Loan1) 400 95 155 Net Debt 779 ABS Europe2) 300 64 98 Gearing5) 47% ABL USA 607 467 407 Leverage6) 5.4x Bilateral Facilities3) 238 151 137 Leases 135 135 13
Slide 20: Sales by markets, products and industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 2% 1% 9% 8% 16% 5% 8% 28% 9% 10% 54% 54% 9% 28% 20% 13% 26% North America Flat products Construction Germany/Austria Long products Manufacturing, Machinery, Mechanical Engineering Aluminum Transportation
Slide 21: Share price performance in Q2 2024
SHARE PRICE PERFORMANCE IN Q2 2024 110% 105% 100% The share price of Klöckner & Co showed a negative trend through the second quarter of 2024 95% It reached its peak on April 12 with €6.89 90% Subsequently, it gradually declined and went out of trading at €5.52 on June 28 85% 80% Apr-24 May-24
Slide 22: Dividend policy
DIVIDEND POLICY In general, Klöckner & Co SE follows a dividend policy of distributing Due to earnings no dividend payment neither in 2011, 30% of net income before special items. 2012 and 2013 nor in 2015 Given the volatility of our business model, a sustainable dividend Full distribution of ne
Slide 23: 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 23 Klöckner & Co SE | Q2 2024 R
Slide 24: 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 25: 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 25 Klöckner & Co SE | Q2 2024 Results | Analysts’ and Investors’ Conference
Slide 26: Financial calendar
FINANCIAL CALENDAR November 6, 2024 Q3 quarterly statement 2024 March 12, 2025 Fabian Joseph Annual Financial Statement 2024 Head of Investor Relations May 7, 2025 +49 203 307-2291 Q1 quarterly statement 2025 fabian.joseph@kloeckner.com www.kloeckner.com May 28, 2025 Annual General Meeting 2025 Augu