Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — FY2023 Earnings Presentation
27 slides from Kloeckner &'s earnings presentation, Mar 13, 2024
Slide 1: FY 2023 Results
FY 2023 RESULTS Analysts’ and Investors’ Conference Call March 13, 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 | FY 2023 Results | Analysts’ and Investors’ Conference
Slide 4: Highlights of FY 2023
HIGHLIGHTS OF FY 2023 FY 2023*) FY 2022*) Increase yoy driven by strong development of Kloeckner Metals Americas Shipments (Tto) 4,248 4,193 +1.3% despite overall challenging macro environment Sales (€m) 6,957 8,337 -16.6% Decrease due to considerably lower average price level yoy Gross profit (€m)
Slide 5: Strengthening focus on higher value-added business and core markets
STRENGTHENING FOCUS ON HIGHER VALUE-ADDED BUSINESS AND CORE MARKETS Lowering complexity, increasing resilience and profitability: Sold parts of the low margin distribution business in Europe (~10% of Sales but ~20% of FTEs) Closed and integrated value accretive growth platform NMM Acquired highly pr
Slide 6: Lowering complexity, increasing resilience and profitability
LOWERING COMPLEXITY, INCREASING RESILIENCE AND PROFITABILITY Sale of distribution business in France, the UK, Sales split by regions after sale the Netherlands and Belgium to strengthen focus on HVAB Transaction significantly reduces our dependence on volatile commodity markets Country organizat
Slide 7: Leading the sustainability transformation of the steel industry
LEADING THE SUSTAINABILITY TRANSFORMATION OF THE STEEL INDUSTRY Capitalizing on sustainable business opportunities SCOPE 1 & 2 Intending to expand cooperation in metal products and OWN DIRECT AND INDIRECT EMISSIONS related services in the future Midterm target already achieved in Already deliver
Slide 8: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 8 Klöckner & Co SE | FY 2023 Results | Analysts’ and Investors’ Conference
Slide 9: Solid operating performance and positive cash generation
SOLID OPERATING PERFORMANCE AND POSITIVE CASH GENERATION Our net working capital management Despite an ongoing challenging market environment, we achieved solid operating result in FY 2023 within guidance range and strong and significantly positive operating cash ~1,300 flow ~1,200 Mitigated lar
Slide 10: Shipments, Sales and Gross Profit
SHIPMENTS, SALES AND GROSS PROFIT Shipments & Sales Gross profit & Gross margin 1,840 311 1,775 1,754 1,756 296 282 1,606 269 232 1,087 1,091 1,044 1,026 941 16,9 16,9 16,0 16,7 13,1 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Shipments (Tto) Sales (€m) Gross prof
Slide 11: EBITDA in Q4 2023 and FY 2023
EBITDA (€M) IN Q4 2023 AND FY 2023 -6 -2 22 -5 17 12 Solid EBITDA-performance despite challenging market 21 -19 environment EBITDA Volume Price OPEX F/X EBITDA Material EBITDA Generated EBITDA before material special effects of €17m Q4 2022 effect effect Q4 2023 special Q4 2023 in Q4 2023 and €1
Slide 12: Cash Flow and Net Debt Development
CASH FLOW AND NET DEBT DEVELOPMENT Cash flow FY 2023 (€m) EBITDA reported of €190m -42 -50 Net working capital release of €251m 251 -62 Other changes relate to changes in receivables, -84 287 provisions and liabilities 190 -348 -145 Positive cash flow from operating activities of €287m EBITD
Slide 13: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 13 Klöckner & Co SE | FY 2023 Results | Analysts’ and Investors’ Conference
Slide 14: Region Specific Business Outlook 2024
REGION SPECIFIC BUSINESS OUTLOOK 2024 North America +1-3% Real steel Construction Manufacturing, Transportation Household & Energy demand industry machinery & mechanical Commercial industry engineering Appliances Europe +0-1% 14 Klöckner & Co SE | FY 2023 Results | Analysts’ and Investors’ Conferenc
Slide 15: Outlook
OUTLOOK Q1 Considerable increase of Shipments and Sales expected (qoq) EBITDA before material special effects expected to increase very considerably qoq; expectation 2024 of €30-70m before material special effects Shipments and Sales expected to increase considerably yoy FY EBITDA before mat
Slide 16: Agenda
AGENDA 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 16 Klöckner & Co SE | FY 2023 Results | Analysts’ and Investors’ Conference
Slide 17: Quarterly and FY Results
QUARTERLY AND FY RESULTS Q4 Q3 Q2 Q1 Q4 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY FY (€m) 2023*) 2023*) 2023*) 2023*) 2022*) 2022 2022 2022 2022 2021 2021 2021 2021 2023*) 2022*) 2022 2021 2020 2019 Shipments (Tto) 1,026 1,091 1,044 1,087 941 1,047 1,148 1,226 1,257 1,108 1,190 1,295 1,287 4,248 4,193
Slide 18: Segment Performance
SEGMENT PERFORMANCE KM AMERICAS Shipments (Tto) Sales (€m) EBITDA (€m) +30.0% +5.6% 669 655 1,016 65 599 598 956 46 45 504 929 930 905 31 4 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 KM EU Shipments (Tto) Sales (€m) EBITDA*
Slide 19: Strong and Solid Balance Sheet
STRONG AND SOLID BALANCE SHEET Solid equity ratio of 45%, gearing*) of 46% and leverage of 4.1x Assets Equity & Liabilities 3,859 3,867 3,859 3,867 1.033 1.132 1.968 1.755 45% 51% 1.633 1.400 928 760 38 25 773 940 785 683 74 407 476 179 155 308 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Non
Slide 20: Maturity Profile
MATURITY PROFILE Facility Committed Drawn amount €m Dec 31, 2023 (€m) Dec 31, 2023 Dec 31, 2023 Dec 31, 2022 Adjusted equity4) 1,703 Syndicated Loan1) 400 156 25 Net Debt 775 ABS Europe2) 300 98 159 Gearing5) 46% ABL USA 588 407 155 Leverage6) 4.1x Convertible 2016 - - 139 Bilateral Facilities3) 249
Slide 21: Sales by Markets, Products and Industries
SALES BY MARKETS, PRODUCTS AND INDUSTRIES Sales by markets Sales by products Sales by industries 1% 1% 1% 9% 8% 16% 5% 8% 28% 9% 10% 54% 54% 9% 28% 20% 13% 26% North America Flat products Construction Long products Manufacturing, Machinery, Mechanical Engineering Germany/Austria Aluminum Transportat
Slide 22: Share Price Performance in FY 2023
SHARE PRICE PERFORMANCE IN FY 2023 130% 120% The capital market environment in 2023 110% remained volatile, shaped by inflation and central banks' monetary policies 100% The share price of Klöckner & Co reached its highest level of €10.06 on March 3, 2023 90% Subsequently, the share price expe
Slide 23: 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 24: 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 24 Klöckner & Co SE | FY 2023 R
Slide 25: Nexigen Steel Categorization
25 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 Me
Slide 26: A Comprehensive Approach
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 26 Klöckner & Co SE | FY 2023 Results | Analysts’ and Investors’ Conference
Slide 27: Financial Calendar
FINANCIAL CALENDAR May 7, 2024 Q1 quarterly statement 2024 Fabian Joseph May 23, 2024 Head of Investor Relations Annual General Meeting 2024 +49 203 307-2291 August 1, 2024 Half-yearly financial report 2024 [email protected] www.kloeckner.com November 6, 2024 Q3 quarterly statement 2024 27