Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q1 2022 Earnings Presentation
23 slides from Kloeckner &'s earnings presentation, May 4, 2022
Slide 1: Q1 2022 Results
Q1 2022 RESULTS Analysts’ and Investors’ Conference May 4, 2022 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 | Q1 2022 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of Q1 2022
HIGHLIGHTS OF Q1 2022 Q1 2022 Q1 2021 Slightly down yoy, however, strongly up qoq (+13.4%) due to seasonality Shipments (Tto) 1,257 1,287 -2.3% and despite consistent margin-over-volume strategy Sales (€m) 2,438 1,525 +59.8% Due to positive price development Gross profit (€m) 482 388 +24.2% Consider
Slide 5: Operational and Automation Initiatives Progressing
OPERATIONAL AND AUTOMATION INITIATIVES PROGRESSING Sale of site in Switzerland Sale of site in Wettingen, Switzerland, completed Disposal proceeds of €50m Operating business relocated to other sites Material special effects amounting to a total of €53m in Q1 2022 Kloeckner Assistant post
Slide 6: Leading the Sustainability Transformation
LEADING THE SUSTAINABILITY TRANSFORMATION Concrete reduction measures identified, implementation already started Scope 1 & 2 emissions below 1% of overall Scope 1-3 emissions In addition to reduction measures, compensation of Scope 1 & 2 emissions from 2022 onwards World's first company with n
Slide 7: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 7 Klöckner & Co SE | Q1 2022 Results | Analysts’ and Investors’ Conference
Slide 8: Shipments, Sales and Gross Profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments (Tto) & Sales (€m) Gross profit (€m) & Gross margin (%) Shipments Sales 2,438 542 524 482 2,038 2,030 439 1,847 388 1,525 1,287 1,295 1,257 1,190 1,108 28.4 25.4 26.6 21.6 19.8 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021* Q3 2021* Q4 2021* Q1 2
Slide 9: EBITDA Development
EBITDA DEVELOPMENT EBITDA (€m) in Q1 2022 Strong operating result and considerably up yoy 53 Negative volume effect mainly due to consistent margin- -12 6 over-volume strategy 85 Strong positive price effect due to tight market environment 254 -9 201 OPEX up especially driven by shipping & o
Slide 10: Cash Flow and Net Debt Development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow Q1 2022 (€m) EBITDA of €254m 254 Mainly price driven NWC increase of €425m; smart NWC -425 management Asset disposals of €54m in Switzerland and France -6 -222 -31 -261 -54 39 Cash flow from operating activities of €-261m 1 EBITDA Q1 2022 Change i
Slide 11: Strong and Solid Balance Sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 44%, gearing*) of 51% and leverage of 1.1x 4,426 4,426 3,878 3,878 1,008 1,099 1,963 1,827 44% 1,930 47% 1,716 1,078 817 42 50 1,322 844 993 941 64 58 82 84 340 350 Dec 31, 2021 Mar 31, 2022 Dec 31, 2021 Mar 31, 2022 Non-current assets Trade recei
Slide 12: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 12 Klöckner & Co SE | Q1 2022 Results | Analysts’ and Investors’ Conference
Slide 13: Region Specific Business Outlook 2022
REGION SPECIFIC BUSINESS OUTLOOK 2022 Europe +1-3% Real steel Construction Manufacturing, Energy Automotive Shipbuilding demand industry machinery & mechanical industry industry engineering, etc. USA +3-5% 13 Klöckner & Co SE | Q1 2022 Results | Analysts’ and Investors’ Conference
Slide 14: Outlook
OUTLOOK Considerable increase in sales expected and shipment expectations stable to Q2 slightly increasing (qoq) EBITDA expectation of €180-240m before material special effects 2022 Strong and significantly positive operating cash flow expected Sales expectation considerably above prior-year
Slide 15: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 15 Klöckner & Co SE | Q1 2022 Results | Analysts’ and Investors’ Conference
Slide 16: Quarterly and FY Results
QUARTERLY AND FY RESULTS Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2022 2021 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 2021 2020 2019 2018 2017 Shipments (Tto) 1,257 1,108 1,190 1,295 1,287 1,195 1,242 1,070 1,365 1,250 1,420 1,479 1,499 4,881 4,873 5,648 6,107 6,135 Sa
Slide 17: Segment Performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA*) (€m) +73.5% -5.3% 1,148 146 633 134 619 609 1,004 1,000 586 101 845 75 72 537 662 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 KM EU Shipments (Tto) Sales (€m) EBI
Slide 18: Maturity Profile
MATURITY PROFILE Facility Committed Drawn amount €m Mar 31, 2022 (€m) Mar 31, 2022 Mar 31, 2022 Dec 31, 2021 Adjusted equity4) 1,942 Syndicated Loan 250 183 36 Net Debt 999 ABS Europe1) 300 203 189 Gearing5) 51% ABL USA2) 405 303 240 Leverage6) 1.1x Convertible 2016 148 142 142 Bilateral Facilities3
Slide 19: Sales by Markets, Products and Industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 1% 4% 4% 9% 6% 2% 8% 6% 7% 8% 14% 8% 38% 46% 51% 10% 9% 25% 14% 30% USA Flat products Construction industry Germany/Austria Long products Machinery/Mechanical engineering Switzerland Aluminum Automotive
Slide 20: Share Price Performance in Q1 2022
SHARE PRICE PERFORMANCE IN Q1 2022 125% 120% 115% The capital market environment remained volatile 110% throughout Q1 2022, especially due to the escalation of the war in the Ukraine 105% The share price of Klöckner & Co decreased in January 100% 2022 reaching its lowest level of €9.15 on Januar
Slide 21: Dividend Policy
DIVIDEND POLICY In general, Klöckner & Co SE follows a dividend policy of Inclusion of our general dividend policy in financial year distributing 30% of net income before special items. 2010 with a dividend of €0.30 per share Given the volatility of our business model, a sustainable Due to earni
Slide 22: Customer-Centric Metric for CO2-Reduced Steel
LEADING THE SUSTAINABILITY TRANSFORMATION - INTRODUCTION OF A CUSTOMER- CENTRIC METRIC FOR CO2-REDUCED STEEL Five categories differ by carbon load One category differs by method Our ambition Carbon load thresholds (in kg CO2e/t finished steel product) 2025 2030 © SHIPMENTS Start Step Plus Pro Prime
Slide 23: Financial Calendar
FINANCIAL CALENDAR June 1, 2022 Felix Schmitz Annual General Meeting 2022 Head of Investor Relations | August 3, 2022 Head of Strategic Sustainability Half-yearly financial report 2022 +49 203 307-2295 November 3, 2022 felix.schmitz@kloeckner.com Q3 quarterly statement 2022 www.kloeckner.com 23 Klöc