Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — Q2 2022 Earnings Presentation
22 slides from Kloeckner &'s earnings presentation, Aug 3, 2022
Slide 1: Q2 2022 Results Press Conference
Q2 2022 RESULTS Press Conference August 3, 2022 Guido Kerkhoff | CEO
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. Outlook 3. Appendix 3 Klöckner & Co SE | Q2 2022 Results | Press Conference
Slide 4: Highlights of Q2 2022
HIGHLIGHTS OF Q2 2022 Q2 2022 Q2 2021 Down yoy due to macro environment and margin-over-volume strategy at Shipments (Tto) 1,226 1,295 -5.3% the beginning of the quarter; slightly down qoq (-2.5%) Sales (€m) 2,580 1,847 +39.7% Considerable increase due to higher price level Gross profit (€m) 508 525
Slide 5: EBITDA Development
EBITDA DEVELOPMENT EBITDA (€m) in Q2 2022 Strong operating result in Q2; down yoy due to -28 unprecedented price dynamics in Q2 2021 Negative volume effect mainly due to macro environment in -17 combination with consistent margin-over-volume strategy 271 1 -15 12 Negative price effect due to l
Slide 6: New on-campus facility in the US
NEW ON-CAMPUS FACILITY IN THE US Leveraging our partner network Strengthening partnership with Nucor with on-campus facility at new mill in Brandenburg, KY* Investments are focused on developing sustainable, innovative and complex supply chain solutions for the end markets of renewable energy
Slide 7: Launching Becker Stainless Steel
LAUNCHING BECKER STAINLESS STEEL Leveraging our Assets Extended strategic positioning of Becker Stahl-Service, the most modern service center in Europe, as multi metals supplier Entering highly attractive stainless steel business and significantly expanding product and service portfolio; now pro
Slide 8: Pioneering in digitalization and sustainability
PIONEERING IN DIGITALIZATION AND SUSTAINABILITY Progress on digitalization and automation Offering and further developing extensive Sustainability Advisory Services (SAS) Digital sales share at high level of 45%, flat yoy Dedicated and specially qualified Green Steel Experts across Kloeckner A
Slide 9: Agenda
AGENDA 1. Highlights and update on strategy 2. Outlook 3. Appendix 9 Klöckner & Co SE | Q2 2022 Results | Press Conference
Slide 10: Strong Fundament
STRONG FUNDAMENT Strongest first-half-EBITDA since IPO in 2006 Proving high performance through the cycle, now translating into strong cash flows Fostering upside risks and mitigating downside risks with smart NWC management Rock solid balance sheet and operating profitability improved Wel
Slide 11: 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 +1-3% 11 Klöckner & Co SE | Q2 2022 Results | Press Conference
Slide 12: Outlook
OUTLOOK Shipments expected to slightly increase (qoq); price-driven sales decline expected (qoq); Q3 EBITDA before material special effects down qoq due to macro environment and negative price dynamics; expectation of €50-100m 2022 Strong and significantly positive cash flow from operating act
Slide 13: Agenda
AGENDA 1. Highlights and update on strategy 2. Outlook 3. Appendix 13 Klöckner & Co SE | Q2 2022 Results | Press Conference
Slide 14: Quarterly and FY Results
QUARTERLY AND FY RESULTS Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2019 2019 2019 2019 2021 2020 2019 2018 2017 Shipments (Tto) 1,226 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
Slide 15: Segment Performance
SEGMENT PERFORMANCE KM US Shipments (Tto) Sales (€m) EBITDA*) (€m) -7.2% +43.8% 146 633 134 609 1,216 586 588 1,148 101 1,004 1,000 80 72 537 845 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 KM EU Shipments (Tto) Sales (€m) E
Slide 16: Maturity Profile
MATURITY PROFILE Facility Committed Drawn amount €m June 30, 2022 (€m) Jun 30, 2022 Jun 30, 2022 Dec 31, 2021 Adjusted equity4) 2,055 Syndicated Loan 250 100 36 Net Debt 903 ABS Europe1) 300 268 189 Gearing5) 44% ABL USA2) 433 288 240 Leverage6) 1.0x Convertible 2016 148 144 142 Bilateral Facilities
Slide 17: 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% 46% 51% 38% 10% 9% 25% 14% 30% USA Flat products Construction industry Germany/Austria Long products Machinery/Mechanical engineering Switzerland Aluminum Automotive
Slide 18: Share Price Performance in Q2 2022
SHARE PRICE PERFORMANCE IN Q2 2022 120% 110% Due to the ongoing war in Ukraine and the monetary policy change of central banks, the capital market environment 100% remained volatile throughout Q2 2022 The share price of Klöckner & Co reached its highest level of 90% €13.09 on April 24 and decrea
Slide 19: 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 20: 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 21: 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 22: Financial Calendar
FINANCIAL CALENDAR November 3, 2022 Christian Pokropp Q3 quarterly statement 2022 Head of Corporate Communications | March 9, 2022 Head of Group HR Annual financial statements 2022 +49 203 307-2050 [email protected] www.kloeckner.com 22 Klöckner & Co SE | Q2 2022 Results | Press Confer