Klöckner & Co SE

A Leading Multi Metal Distributor

Q3 2014 Results

Analysts’ and Investors’ Conference

CEO

Gisbert Rühl

November 6, 2014

CFO

Marcus A. Ketter

Disclaimer

This presentation contains forward-looking statements which reflect the current views of the management of

Klöckner & Co SE with respect to future events. They generally are designated by the words “expect”, “assume”,

“presume”, “intend”, “estimate”, “strive for”, “aim for”, “plan”, “will”, “strive”, “outlook” and comparable expressions and

generally contain information that relates to expectations or goals for economic conditions, sales proceeds or other

yardsticks for the success of the enterprise. Forward-looking statements are based on currently valid plans, estimates

and expectations. You therefore should view them with caution. Such statements are subject to risks and factors of

uncertainty, most of which are difficult to assess and which generally are outside of the control of Klöckner & Co SE. The

relevant factors include the effects of significant strategic and operational initiatives, including the acquisition or

disposition of companies. If these or other risks and factors of uncertainty occur or if the assumptions on which the

statements are based turn out to be incorrect, the actual results of Klöckner & Co SE can deviate significantly from those

that are expressed or implied in these statements. Klöckner & Co SE cannot give any guarantee that the expectations or

goals will be attained. Klöckner & Co SE – notwithstanding existing obligations under laws pertaining to capital markets –

rejects any responsibility for updating the forward-looking statements through taking into consideration new information

or future events or other things.

In addition to the key data prepared in accordance with International Financial Reporting Standards, Klöckner & Co SE is

presenting non-GAAP key data such as EBITDA, EBIT, Net Working Capital and net financial liabilities that are not a

component of the accounting regulations. These key data are to be viewed as supplementary to, but not as a substitute

for data prepared in accordance with International Financial Reporting Standards. Non-GAAP key data are not subject to

IFRS or any other generally applicable accounting regulations. Other companies may base these concepts upon other

definitions.

2

Klöckner & Co SE

A Leading Multi Metal Distributor

Highlights and update on strategy

CEO

Gisbert Rühl

Highlights Q3 01

4

• Steel distribution market remained stable in Europe* but improved significantly in

the US (+5.0%**)

• KCO sales went up roughly in line with shipments by 4.7% yoy to €1.7bn

• Gross profit improved by 9.9% to €325m, gross margin expansion by 0.9%p to 19.4% yoy

• EBITDA of €59m came in at the upper end of guidance range of €50 to 60m

• Positive quarterly net income of €15m achieved

• Leverage reduced from 3.5x to 2.8x EBITDA yoy

• EBITDA in Q4 expected to be in a range between €30 and €40m

• EBITDA guidance for the year as a whole narrowed to between €190m and €200m

* Source: Eurometal; distribution shipments in Q3 in Europe yoy.

** Source: MSCI; distribution shipments/ SSC in Q3 in the US yoy.

Substantial yoy EBITDA-improvement mainly through self-help measures 01

EBITDA-bridge (€m)

• Self-help measures contributed

€12m to EBITDA against prior year

in Q3 and €39m ytd

• EBITDA contribution achieved

through KCO 6.0 amounted to

€7m in Q3 and €29m ytd

• KCO WIN impact of €5m

in Q3 and €10m ytd

• EBITDA margin improved by 1.2%p

to 3.5% in Q3 and by 1.0%p to 3.2%

ytd

Comments

Q3 yoy

5

Self-help measures:

€12m

59

36

9

143

EBITDA

Q3 2013

GP Effect

Riedo

EBITDA

Q3 2014

OPEX*

-15

KCO WIN

Effect

5

KCO 6.0

Effect

Price

Effect

Volume

Effect

9M yoy

16029

1088

EBITDA

9M 2013

KCO WIN

Effect

-31

OPEX* EBITDA

9M 2014

10

KCO 6.0

Effect

GP Effect

Riedo

17

Price

Effect

19

Volume

Effect

Self-help measures:

€39m

7

* Including -€6m pension adjustment NL 2013 and -€4m Riedo.

* Including -€13m pension adjustment NL 2013 and -€9m Riedo.

10

Self help measures with an EBITDA-contribution of €39m in the first nine month of

2014 01

6

KCO 6.0

KCO WIN

2014

2015 €34m

Total annual EBITDA-impact of ~€50m

from 2015 onwards

€16m €10m

already realized

already realized

2013

2014

€51m

€61m

€38m

Total annual EBITDA-impact of ~€150m

from 2014 onwards

2011-2012

€29m

Comprehensive transformation initiated 01

7

Klöckner & Co 2020

Differentiation

Growth and

optimization

Sourcing

Products and

services

Digitalization

External & internal

growth

Operations

Stabilization Restructuring

Enabling

activities

Management &

pers. development

Controlling &

IT systems

Finished by implementation of KCO 6.0

Improvements through KCO WIN

External growth with focus on higher value-added business

Internal growth with focus on US market

Broad product range and accelerated expansion of higher value-

added processing and services

Digitalization of supply chain

Realization of higher scale-effects through expansion of partnerships

with specific suppliers

Increased effort in management capabilities and measurability

of people management

Deployment of most modern controlling and IT systems

Mid-term EBITDA margin target of >5% until 2017 01

8

Growth and optimization Differentiation Stabilization

2017

EBITDA margin

Sourcing,

products and

services,

digitalization

KCO WIN

0.8%

Riedo

acquisition

0.2%

KCO 6.0

(remaining

effects)

0.6% 2.0%

>5% > 2.0%

2013

EBITDA margin

before

restructuring and

one-offs

Klöckner & Co SE

A Leading Multi Metal Distributor

Financials CFO

Marcus A. Ketter

Shipments and sales 02

Sales (€m) Shipments (Tto)

• Increase yoy driven by Riedo

• Shipments decreased qoq following the usual

seasonal pattern

• yoy increase includes Riedo and market effects

• Sales decline qoq less pronounced than

shipments due to higher prices

10

1,847

1,633 1,625 1,698

1,600

1,455 1,572

1,680 1,675

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

1,764

1,585 1,646 1,690

1,617

1,492

1,633 1,720 1,690

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

+4.5%

-1.8% -0.3%

+4.7%

EBITDA* (€m) / EBITDA margin* (%)

Gross profit and EBITDA margin improvement is keeping momentum 02

Gross profit* (€m) / Gross margin* (%)

• Gross margin up in Q3 by 0.9%p from 18.5%

to 19.4% yoy

• EBITDA continues to benefit from KCO 6.0

measures and now additionally from KCO WIN

• EBITDA margin improved in Q3 from 2.3%

to 3.5% yoy

* Before restructuring costs.

11

18

22

29

43 39 40

45

56

59

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

306

302 303

305

296

288

302

325 325

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

18.7 FY

17.5 FY

19.3 9M

2.4 FY

1.8 FY

3.2 9M

Segment performance (shipments and sales) 02

• Shipments

• Europe up by 6.0% mainly due to Riedo acquisition

(+5.7%p)

• Americas up by 2.6% due to favorable market

development

12

Shipments (Tto)

Sales (€m)

Comments

• Sales

• In Europe up by 3.4% due to Riedo

• Americas segment up by 6.8% also impacted by

stronger USD

714 733

903 957

Q3 2014

4.5%

Americas

1,690

Europe

Q3 2013

1,617

594 634

Q3 2013

1,006

1,600

4.7%

Europe

Americas

Q3 2014

1,675

1,041

+6.0%

+2.6%

+3.4%

+6.8%

• Focus on higher margin business visible in both

segments

• Europe

• Gross margin up by 1.1%p to 20.7%

• EBITDA margin up by 0.6%p to 3.2%

• Americas

• Gross margin up by 0.6%p to 17.3%

• EBITDA margin up by 1.6%p to 4.5%

Segment performance (gross profit and EBITDA) 02

13

Gross profit (€m) Comments

1729

26

33

-3

Q3 2013

36

-7

+60.8%

HQ/Consol.

Americas

Europe

Q3 2014

59

11099

216197

325

Q3 2013

296

Europe

+9.9%

Americas

Q3 2014

+9.5%

+10.7%

+25.9%

+66.5%

+52.9%

EBITDA (€m)

Cash flow and net debt development 02

Cash flow reconciliation in Q3 2014 (€m)

• Seasonal NWC release reflected in free

cash flow of €44m

• “Other” include changes in provisions, in

other operating assets/liabilities as well as

non-cash items

• Capex at run-rate level

Comments

36

Development of net financial debt in Q3 2014 (€m)

14

59

31

5844

EBITDA

Q3 2014

Free

cash flow

Q3 2014

Capex

-14

Cash

flow from

operating

activities

Other

-23

Taxes

-6

Interest

-3

Change

in NWC

58

September

30, 2014

557

Other

-22

Capex (net)

-14

CF from

operating

activities June 30, 2014

579

• Net debt decreased from €579m to

€557m mainly due to positive operating

cash flow driven by NWC release

• “Other” include -€12m f/x

• Equity ratio further solid at 39%

• Net debt of €557m compared to €325m on Dec. 31, 2013

• Gearing* at 39%

• Leverage** 2.8x

• NWC increased from €1,463m to €1,479m qoq f/x related

Balance sheet remains strong 02

* Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 23, 2013.

Comments

15

Assets

595 381

687 883

3,764

1,204

Dec 31, 2013

1,296 Inventories

Other assets

Trade receivables

Sep 30, 2014

Liquidity

3,595

1,147

1,166

385366

637

286

911930

Equity 1,463

Pensions

Sep 30, 2014 Dec 31, 2013

Financial liabilities

700

1,445

3,764

236

3,595

Other liabilities

Trade payables

Equity & liabilities

40% 39%

** Leverage = Net debt/EBITDA before restructuring expenses

last twelve months.

Klöckner & Co SE

A Leading Multi Metal Distributor

Outlook CEO

Gisbert Rühl

US

Segment specific business outlook 03

17

Steel demand

Construction industry

Automotive industry

Machinery and mechanical

engineering

Europe

+2% +5-6%

Outlook

• Q4 2014

• Shipments to be lower qoq due to seasonality and weaker business environment in Europe

• Declining prices in the US with negative impact on earnings in the Americas Segment

• EBITDA expected in a range between €30 and €40m

• FY 2014

• Sales and shipments to be slightly up - also through Riedo acquisition

• EBITDA guidance narrowed to between €190m and €200m

• Reduction of IDA expense by some €25m to €155m anticipated

• Resumption of dividend payments planned for fiscal year 2014

03

18

Highlights and update on strategy 01

Financials

Outlook

Appendix

02

03

04

Agenda

19

Quarterly results and FY results 2011-2014 04

20

(€m) Q3

2014

Q2

2014

Q1

2014

Q4

2013

Q3

2013

Q2

2013

Q1

2013

Q4

2012*

Q3

2012*

FY

2013

FY

2012*

FY

2011

Shipments (Tto) 1,690 1,720 1,633 1,492 1,617 1,690 1,646 1,585 1,764 6,445 7,068 6,661

Sales 1,675 1,680 1,572 1,455 1,600 1,698 1,625 1,633 1,847 6,378 7,388 7,095

Gross profit 325 325 302 284 296 305 303 298 306 1,188 1,288 1,315

% margin 19.4 19.3 19.2 19.5 18.5 18.0 18.6 18.3 16.6 18.6 17.4 18.5

EBITDA 59 56 45 16 36 43 29 -35 18 124 60 217

% margin 3.5 3.3 2.9 1.1 2.3 2.5 1.8 -2.2 1.0 2.0 0.8 3.1

EBIT 36 33 23 -36 10 17 2 -89 -9 -6 -105 111

Financial result -14 -16 -17 -17 -19 -19 -19 -14 -22 -73 -80 -84

Income before taxes 22 17 6 -52 -8 -2 -16 -103 -31 -79 -185 27

Income taxes -7 -7 -3 -7 -3 -2 1 -19 3 -12 -18 -17

Net income 15 10 3 -59 -11 -4 -16 -123 -29 -90 -203 10

Minority interests 0 0 0 -5 0 0 0 -1 -1 -6 -3 -1

Net income KlöCo 15 10 3 -54 -11 -4 -16 -122 -28 -85 -200 12

EPS basic (€) 0.15 0.10 0.03 -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.85 -2.00 0.14

EPS diluted (€) 0.15 0.10 0.03 -0.54 -0.11 -0.04 -0.16 -1.22 -0.28 -0.85 -2.00 0.14

* Restated due to initial application IAS 19 revised 2011.

Recovery continued in both segments 04 E

uro

pe

Am

ericas

21

Shipments (Tto) Sales (€m) EBITDA* before restructuring (€m)

EBITDA before restructuring (€m)

* 2012: as restated for the initial application of IAS19 revised 2011.

Restructuring costs (€m) Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q3 2013 Q4 2013

Europe 10 3 17 -1 57 13

Americas 1 2 11 ** Including pension release: Q2 2013 €7m, in Q3 2013 €6m and Q4 2013 €1m

and sale of French La Courneuve site €13m.

1,018

908 930 941 903 839

956 987 957

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

1,149 1,041 1,017 1,061

1,006 935

1,015 1,072 1,041

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

12

16 14

28 26

34

26

32 33

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

677

716 714

653

677

733 733

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

592 608 594

520 557

608 634

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

12

16

21 20 20

13

24

28 29

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

+6.0% +3.4%

+2.6% +6.8%

698 637

Sales (€m) Shipments (Tto) 746 749

22

04 Improvement of maturity profile

14

228

24 16 38

52

133

579

258

360

186

0

200

400

600

800

1000

1200

2014 2015 2016 2017 Thereafter

Committed lines

Bilaterals Promissory Notes ABS

US ABL Syndicated Loan Convertibles

466

1,213

157

• Syndicated loan extension option of one year till May 2017 successfully executed

• ABS Europe extended by one year till May 2017

• S&P rating improved from B+, Outlook „negative“ to B+, Outlook „stable“

€m Facility Committed Drawn amount (IFRS)

Q3 2014* FY 2013*

Bilateral Facilities 1)

578 141 62

ABS 579 267 191

Syndicated Loan 360 162 161

Promissory Note 185 188 238

Total Senior Debt 1,702 758 652

Convertible 2009 0 0 98

Convertible 2010 2) 186 180 171

Total Debt 1,888 938 921

Cash 381 595

Net Debt 557 325

*Including interest accrued.

1) Including finance lease.

2) Drawn amount excludes equity component.

Sales by markets, products and industries 04

23

As of December 31, 2013

Current shareholder structure 04

24

Geographical breakdown of identified

institutional investors

Comments

• Identified institutional investors

account for 59%

• German investors incl. retail

dominate

• Top 10 shareholdings represent

around 33%

• Retail shareholders represent 27%

As of October 2014

Appendix 04

25

Contact details Investor Relations

Christian Pokropp, Head of Investor Relations & Corporate Communications

Phone: +49 203 307 2050

Fax: +49 203 307 5025

E-mail: christian.pokropp@kloeckner.com

Internet: www.kloeckner.com

Financial calendar 2015

March 5, 2015 Annual Financial Statements 2014

May 7, 2015 Q1 interim report 2015

May 12, 2015 Annual General Meeting 2015, Düsseldorf

August 6, 2015 Q2 interim report 2015

November 5, 2015 Q3 interim report 2015

Our Symbol

the ears

attentive to customer needs

the eyes

looking forward to new developments

the nose

sniffing out opportunities

to improve performance

the ball

symbolic of our role to fetch

and carry for our customers

the legs

always moving fast to keep up with

the demands of the customers