Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Shareholder Meeting (June 2007)
29 slides from Kloeckner &'s shareholder meeting presentation, Jun 20, 2007
Slide 1: Klöckner & Co AG Annual General Meeting 2007
Klöckner & Co AG Annual General Meeting 2007 20 June 2007 Dr. Thomas Ludwig
Slide 2: Agenda
Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 2 | HV 2007
Slide 3: Highlights 2006
Highlights 2006 Successful IPO and ongoing price performance Successful acquisitions and significant organic growth Outstanding earnings trend underpinned by the STAR Performance Program Disposals and sales of non-core activities Most successful year in the history of the company All targets met 3 |
Slide 4: Key Figures 2006
Key Figures 2006 (€m) 2006 2005* Ä% Volume in to’000 6,127 5,868 +4. 4 Sales 5,532 4,964 +11.4 EBITDA 395 197 +100.5 EBIT 337 135 +149. 6 Net income 235 52 +351.9 Earnings per share in € 4. 44 - - Net financial debt 365 719 - 49.3 *2005: pro forma financial information 4 | HV 2007
Slide 5: Key Figures Segments 2006
Key Figures Segments 2006 (€m) Sales 2006 EBITDA 2006 Europe 4,670 366 North America 862 79 Headquarter / Consolidation - -50 Total 5,532 395 5 | HV 2007
Slide 6: Share
Share Performance since IPO – indexed 400 IPO issue price €16 400 350 350 End 2006 plus 105% 300 300 against issue price 250 250 Inclusion in MDAX in 200 200 January 2007 150 150 100 Most successful 100 50 10July 10 10 Aug. 10 10 Sept. 10 10 Oct. 10 10 Nov. 10 10 10Dec.10 10 Jan. 1 11 Feb. 11 11 Mar
Slide 7: Dividend
Dividend Payout ratio: 30% of Group result after non-recurring income Equals €0.80 / share (distribution total = €37.2 million) 7 | HV 2007
Slide 8: Agenda
Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 8 | HV 2007
Slide 9: Global Reach
Global Reach LT IRL NL CN UK PL B G CZ A CH RO CAN F E USA About 250 locations (1 June 2007) 9 | HV 2007
Slide 10: Global Reach
Global Reach Sales by country (2006) Canada USA Germany / (incl. Primary 17%) 5% Austria 10% Eastern Europe 23% 1% Netherlands 6% Great 9% Britain 21% 10% France / Spain 15% Belgium Switzerland 10 | HV 2007
Slide 11: Broad Market Coverage
Broad Market Coverage Sales by industry (2006) Sales by product (2006) Construction Other products Steel-flat 40% 14% Products 28% Aluminum 8% Special 20% and Quality 10% 35% Machinery / steel 9% 31% Manu- 5% facturing Tubes Other Automotive Steel-long Products 11 | HV 2007
Slide 12: Good and expandable Market Positions
Good and expandable Market Positions Europe (2006) North America (2006) Ryerson ArcelorMittal Reliance Steel 4.7% (Distribution = 5%) Other mill-tied 11% 4.5% ThyssenKrupp Materials NA distributors 2. 5% Samuel, Son & Co % ThyssenKrupp 2. 1 8% Russel Metals % ~ 15- 1.8 O'Neal Steel Namasco 25% with
Slide 13: Market Trends support Klöckner & Co Strategy
Market Trends support Klöckner & Co Strategy Economies of More stable volume scale and trend and high price Globalization level support considerably and more flexible distributor earnings consolidation capacity and margin adjustments development 13 | HV 2007
Slide 14: Profitable Growth
Profitable Growth 1 Acquisitions driving market consolidation Profitable growth Grow more through value-added through than the market 2 Organic growth and distribution and expansion into new markets services within multi metals 3 Continuous STAR program: in Europe and in and business Optimisation No
Slide 15: Market Consolidation by Acquisitions in 2006
Market Consolidation by Acquisitions in 2006 Country Acquired in Company Sales October 2006 Action Steel €55 million October 2006 Gauss €10 million July 2006 Aesga €18 million February 2006 Targe €25 million Sales in 2006: plus €108 million 15 | HV 2007
Slide 16: Market Consolidation by Acquisitions in 2007
Market Consolidation by Acquisitions in 2007 Country Acquired in Company Sales June 2007 Westok €26 million May 2007 Premier Steel €23 million April 2007 Stahlhandel Zweygart €11 million April 2007 Stahlhandel Max Carl €15 million April 2007 Edelstahlservice €17 million April 2007 Primary Steel €360
Slide 17: Organic Growth and Expansion into New Markets
Organic Growth and Expansion into New Markets Optimization and selective expansion of the product program Increase of share of services with higher value-added Reinforced development in Eastern Europe 17 | HV 2007
Slide 18: STAR Program
STAR Program Einkauf Distribution Optimization of purchasing Optimization of the distribution network Expansion of global purchasing in third countries 18 | HV 2007
Slide 19: Results 2006
Results 2006 Acquisitions Organic growth STAR Program Disposals Four companies Almost half the Results €100 million with over sales growth improved by inflows from €108 million €20 million sale of non-core additional sales activities 2006: All targets met 19 | HV 2007
Slide 20: Agenda
Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 20 | HV 2007
Slide 21: Targets 2007
Targets 2007 Expansion in Acquisitions Organic growth STAR program Eastern Europe Ten to twelve Significant share Additional Development of acquisitions in overall growth €40 million new locations earnings and acquisitions contribution 2007: A very promising year 21 | HV 2007
Slide 22: Key Figures for Q1 2007
Key Figures for Q1 2007 (€m) Q1 2007 Q1 2006 Ä% Volume in to’000 1,629 1,601 +1.8 Sales 1,550 1,323 +17.1 EBITDA 92 79 +16.1 EBIT 78 65 +21.4 Earnings after tax 47 37 +24.8 Earnings per share in € 0.86 - - 22 | HV 2007
Slide 23: Outlook 2007: General conditions
Outlook 2007 General conditions Positive trend in the steel industry Expected economic growth in the relevant markets of between 1.8% and 5.0% Stable and increasing demand, especially in the construction and in the machinery / manufacturing industry Price trend stable or increasing 23 | HV 2007
Slide 24: Outlook 2007: Forecast Klöckner & Co
Outlook 2007 Forecast Klöckner & Co At least 15% sales increase, driven primarily by acquisitions EBITDA at level of previous year even without non-recurring income Dividend continuity: 30% payout ratio after deducting non-recurring income 24 | HV 2007
Slide 25: Agenda
Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 25 | HV 2007
Slide 26: Item 8 – Authorization to acquire own Shares
Item 8 – Authorization to acquire own Shares Alignment to standard international practise Maximum of 10% of the shares can be acquired Authorization limited in time: valid 18 months Use of the shares Deployment as acquisition currency for acquiring companies or participations Servicing of issued
Slide 27: Item 9 – Authorisation to Issue Options and/or Convertible Bonds
Item 9 – Authorisation to Issue Options and/ or Convertible Bonds Total nominal amount up to €350 million Option / conversion rights to a total of up to 4,650,000 shares (i.e. 10% of the share capital) Option conditions can also stipulate (early) conversion requirement 27 | HV 2007
Slide 28: Item 10 – Creation of Contingent Capital 2007
Item 10 – Creation of Contingent Capital 2007 To grant subscription and/or conversion rights Capital increased only if and to the extent that conversion rights/options are exercised and are not serviced otherwise Granting cash compensation With acquired own shares Option or conversion price: 135
Slide 29: Klöckner & Co multi metal distribution
Symbol kléckner & co multi metal distribution 29 | HV 2007