Klöckner & Co SE A Leading Multi Metal Distributor
UBS Best of Germany ConferenceSeptember 14 / 15, 2011, New York
Gisbert RühlCEO/CFO
2
Ein- bis zweizeiliger Folientitel00 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.
3
Agenda
02 Recent developments, financials and performance Q2 2011
03 Market environment
04 Outlook
05 Appendix
01 Overview
CustomersDistributor/ Service CenterProducersProducts:
Klöckner & Co SE
Largest producer-independent steel and metal distributor in Europe and America combined
Distribution and service platform with around 290 locations
Key figures for 2010Sales volumes: 5.3 million tonsSales: €5.2 billionEBITDA: €238 million
Services:
4
Ein- bis zweizeiliger Folientitel
Machinery and mechanical engineering
Yellow Goods
White Goods
Miscellaneous
Automotive
Commercial/ residential construction
Infrastructure
01 Klöckner & Co SE at a glance
5
Suppliers Sourcing Products and services
Logistics / distribution
• As a producer- independent distributor, our customers benefit from our diverse national and international procurement options
Customers
• Procurement of large quantities
• Strategic partnerships
• Extensive product range
• Excellent product and processing quality
• Wide-ranging service provision
• Local presence• Individual delivery,
including 24-hour- service
• More than 170,000 customers
• Average normal order size approx. €2,000
• Service and availability more important than price
Holistic solution from covering procurement, logistics and processing
Klöckner & Co value chain
01 Business model
6
Agenda
02 Recent developments, financials and performance Q2 2011
03 Market environment
04 Outlook
05 Appendix
01 Overview
7
02 Highlights Q2
• Challenging quarter due to unexpectedly strong price pressure in all markets leading to an
EBITDA of €62m (3.3% margin), negatively impacted by one offs of €10m (3.8% adjusted
margin)
• Sales volumes increased organically less than typical seasonally due to prebuying effect in
Q1 rolling over and a cautious stance of customers in Q2
• Consolidation of Macsteel and Frefer completed
• Integration of Macsteel and Namasco in the US progressing, synergies higher than initially
expected
• Principle agreement to terminate the earn-out for Macsteel will lead to reduced purchase
price by USD60m and earlier realization of synergy effects
• Capital increase with net proceeds of €517m provides strong backing for
Klöckner & Co 2020
8
02 Steel imports caused pressure in all markets
• Orders to the US were placed during Q1 when the spread between domestic and import prices justified it and domestic prices were still rising
• Imports rose by 26% in Q2 to an average of 2.4m to/month compared to 1.9m to/ month in Q1
• HRC price dropped by USD220 per st since peak
• Fewer imports in the coming months expected due to lower domestic prices and uncertain economic environment
US imports of steel products (in kto/ month)
EU imports of steel products (in kto/ month)
US
• Flat steel import licenses increased by 67% in H1 vs. last year to an average of 1.8m to/ month reaching the peak in May
• HRC dropped by €75 per ton since peak
• Eurometal expects imports into EU to grow by 26% in 2011
Europe
Source: US Census bureau, Eurostat/ Eurometal
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jul07
Nov07
Mar08
July08
Nov08
Mar09
Jul09
Nov09
Mar10
Jul10
Nov10
Mar11
Jul11
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jul07
Nov07
Mar08
July08
Nov08
Mar09
Jul09
Nov09
Mar10
Jul10
Nov10
Mar11
Jul11
700
800
900
1,000
1,100
Jan Feb Mar Apr May Jun
Procurement prices in €/ to Inventory value in €/ to Selling prices in €/ to
9
02 Margin squeeze through pricing environment in Q2
H1 comparison of procurement prices, inventory values and selling prices
• Inventory values per ton still increased during the quarter whereas selling prices already leveled off and procurement prices softened
* Figures not comparable due to adjustments for Frefer & Macsteel, inventory allowances and mix effects
19.4% Gross margin*11.7% Gross margin*
10
02 Steel cycles get shorter and more pronounced
Source: SBB
HRC price development
-150
-100
-50
0
50
100
150
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Cha
nge
in U
SD p
er to
n
• Price volatility increasing due to switch to monthly contract prices, persisting overcapacity and overall lower inventories compared to pre-crisis levels
• Raw material cost inflation and change to quarterly or even spot basis
• Customers’ price sensitivity increased even pronouncing price cycles due to opportunistic buying behavior with negative impact on stockholding distribution
HRC price changes since 2005
11
02
EBITDA
€100m€62m
-38.3%
Q2 2011Q2 2010€331m €337m
+1.8%
Q2 2011Q2 2010
Gross profit
€1,416m
€1,885m+33.1%
Q2 2011Q2 2010
SalesSales volumes
1,448 Tto
+21.8%
Q2 2010 Q2 2011
1,763 Tto
Key financials Q2 2011
1,033 9661,180
1,448 1,368 1,3181,498
1,763
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
934 8731,049
1,416 1,401 1,332
1,587
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
12
02
Sales (€m)Sales volumes (Tto)
Sales volumes and sales
+21.8% +33.1%
+17.7% +18.8%
1,885
Gross profit (€m)/ Gross-margin
0
2
4
6
8
10
12
Ein- bis zweizeiliger Folientitel02 Gross profit and EBITDA
13
EBITDA (€m)/ EBITDA-margin
22.3% 22.6% 22.5%23.4%
21.0%20.6%
22.3%
17.9%
• Margins decreased due to increasing inventory values while sales prices were declining during Q2
• EBITDA negatively impacted by €10m one-offs, whereof €15m write downs on inventories
9.5%
1.2%2.8%
7.1%
4.3% 3.6%
6.6%
3.3%1 3
Reihe1
6.6%
11
83
29
100
61
48
104
62
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
208 198236
331294
275
353 337
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
14
Ein- bis zweizeiliger Folientitel02 Net income and earnings per share
EPS basic (€)*Net income (€m)
* adjusted for capital increase
-23
12
2
47
15 17
44
5
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
-0.42
0.56
0.02
0.69
0.21 0.25
0.65
0.07
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
-227 -600
-137
Capex Other**
15
Ein- bis zweizeiliger Folientitel02 Cash flow predominantly impacted by acquisitions and capital increase
Development of net financial debt in Q2 (€m)Cash flow reconciliation in Q2 (€m)
** exchange rate effects, interest
Q1 Q2
-137-591
62
EBITDA Change inNWC
Taxes Other
CF fromoperatingactivities Capex
Free CF
-20
517
-444
Acquisitions*
-10
Capital increase
Acquisitions*
AssumedDebt
-43-444
-236
* net of cash acquired / capital increase in Frefer
-10-188
9
CF fromoperatingactivities
Dividends
-20
784 730909
1.1621.084 1.029
1.164 1.192
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
16
Ein- bis zweizeiliger Folientitel02 Segment performance Q2 2011
Volumes (Tto) Sales (€m) EBITDA (€m)
** Without acquisitions in 2011
Volumes (Tto) Sales (€m) EBITDA (€m)
** * * * * ** *
Eur
ope
Am
eric
as
249 236 271 286 284 289334
571
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
159 143191
236 232 228297
520
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
103
913
5 7
3023
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
775 730858
1.1801.1691.1041.290 1.365
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
4
143
25
93
6045
81
50
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
+2.6% +15.7%
+99.6%/ +14.4%** +120.4%/ +23.5%**
* Consolidation of BSS as of March 1, 2010
17
02 Integration of Macsteel Service Centers USA progressing
Key facts Macsteel• Consolidation as of May 1, 2011• Sales volume contribution in Q2: 223kTo• Sales contribution in Q2: €211m• EBITDA contribution in Q2: €8m (w/o PPA €10m)• Principle agreement to terminate the earn-out for Macsteel
will lead to reduced purchase price by USD60m and earlier realization of synergy effects
• Continues to be a positive and great fit• Synergy potential higher than initially expected• Fields of synergies are marketing and sales, national key
accounts, products and facilities, purchasing, personnel, cross utilization of assets and logistics
• Integrated entities will be rebranded to Klöckner• Management team in place
Klöckner North America Macsteel Combined
North America
Geographic reach (North America)
32 locations
30 locations
62 locations
Market position (North America) #10 #8
#3 in multi metal, #2 in carbon steel
SSC business expansion —
Product mix improvement
Plate and long focused Flat products Improved
sales mix
Plate Processing Service Center
Plate Processing and Fabrication Service Center
Plate Processing Service Center
Hawaii
Puerto RicoMexico
Macsteel Map Legend
Headquarters
General Line Service Center
Flat Rolled Processing Center
Namasco Map Legend
Plate Processing Service Center
Plate Processing and Fabrication Service Center
Plate Processing Service Center
Hawaii
Puerto RicoMexico
Macsteel Map Legend
Headquarters
General Line Service Center
Flat Rolled Processing Center
Namasco Map Legend
Combined locations
Update on integration status
18
02 Frefer faced with market in a transition period
Key facts Frefer
Market environment in Q2
• Consolidation as of June 1, 2011• Sales volume contribution in Q2: 9kTo• Sales contribution in Q2: €7m• EBITDA contribution in Q2: €-0.6m (w/o PPA €-0.9m)• Entry into long steel market in Brazil with preferred supplier
under consideration to broaden product portfolio
Frefer: 14 locations in Brazil
• Difficult situation due to price pressure coming from imports and overstocking, but mid- to longterm perspectives remain promising
• Stock ratios steadily decreasing being currently at 3.4 months of supply pointing to a turnaround
• Longterm prospects of the market being rather incrementally positive
Source: SECEX, Alice Web, Barclays Capital
Flat steel imports (kt)
0
50
100
150
200
250
300
350
400
450
500
May08
Jul08
Sep08
Nov08
Jan09
Mar09
May09
Jul09
Sep09
Nov09
Jan10
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
HeadquartersBranches
02
19
Q2 2011 (in €m) Strong balance sheet ratios• Net debt €600m
• Gearing* at 36%
• Equity ratio at 37%
* Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010
1,268
1,393
1,142
98 / 23*
1,035
€4,936m
1,849
1,943
1,144
Non-currentassets
Inventories
Trade receivables
Liquidity
Othercurrent assets
Equity
Non-currentliabilities
Current liabilities
149*
148*
37*
164*
332*
457*
*Thereof MSCUSA and Frefer proportion
Frefer 74 MSCUSA 383
Frefer 2 MSCUSA 21
Impact of MSCUSA & Frefer consolidation (as of June 30, 2011):
Frefer 45 MSCUSA 104
Frefer 18 MSCUSA 130
• Non-current assets include intangible assets (customer relations, trade name) of €171.2m and goodwill of €147.5m as well as property, plant and equipment of €112.5m
• Net working capital contribution of €383.8m
• Transaction volume €680.2m
• D&A for the Group will increase in 2011 by ~€30m (incl. PPA) and thereafter annual run rate ~€40m
Frefer 20 MSCUSA 312
Frefer 12 MSCUSA 152
Frefer 33 MSCUSA 4
02 Balance sheet as of June 30, 2011
Sales/ NWC as percentage of sales
20
02 NWC / sales remains constantly below 20%
0%
5%
10%
15%
25%
30%
0%
5%
10%
15%
25%
30%
20%
0
1,000
1,500
2,000
2,500
* adjusted for MSCUSA and Frefer
1,39
4
1,39
8
1,55
0
1,65
0
1,58
3
1,49
2
1,66
0
1,92
2
1,77
3
1,39
4
1,09
5
959
934
873
1,04
9
1,41
6
1,40
1
1,33
2
1,58
7
1,88
5
22%
20%21%
23% 23% 22% 21% 21%
24% 25%23%
20% 19%18%
19% 19% 19% 19%
500
Q32006
Q42006
Q12007
Q22007
Q32007
Q4 2007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q4 2009
Q1 2010
Q22010
Q32010
Q42010
Q12011
Q22011
0%
5%
10%
15%
25%
30%
Sales in €m NWC as % of sales (4x quarterly sales)
18%20%*
500
02
€m Drawn amount
Facility Committed Q2 2011* FY 2010*
Bilateral Facilities1) 580 250 73
Other Bonds 40 41 0
ABS 560 221 88
Syndicated Loan 500 226 226
Promissory Note2) 343 345 147
Total Senior Debt 2,023 1,083 534
Convertible 20073) 325 314 306
Convertible 20093) 98 81 81
Convertible 20103) 186 157 151
Total Debt 2,632 1,635 1,072
Cash 1,035 935
Net Debt 600 137
*Including interest 1) Including finance lease; volume increased in connection with the acquisition of Macsteel 2) New promissory notes issued in Q2 2011 (€198m) 3) Drawn amount excludes equity component 4) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010
€mQ2
2011
Equity 1,849
Net debt 600
Gearing4) 36%
Maturity profile of committed facilities and drawn amounts (€m)
Credit limits
Drawn amounts
244
442517
676753
51
378
179
398
682
2011 2012 2013 2014 Thereafter
21
Further diversification and improvement of financial position in Q2
22
Agenda
02 Recent developments, financials and performance Q2 2011
03 Market environment
04 Outlook
05 Appendix
01 Overview
23
03 Global economies losing pace after strong recovery
• All major indicators across the globe declined during the quarter, downside risks have increased again
• US economy on hold while waiting for the outcome of the governmental budgetary cuts, factory production is slowing, growth rates and expectations being reduced
• Northern Europe slowly recovering further whereas Southern Europe still struggling given the lack of export oriented industries and ongoing weakness in construction
• China adjusting growth to higher single digit percentage points p.a. in order to avoid overheating of the economy
• Although government has limited loans in order to avoid inflation, Brazilian economy is still growing robustly
PMIs
Expansion
Contraction
30
35
40
45
50
55
60
65
70
Jul05
Mar06
Nov06
Jul07
Mar08
Nov08
Jul09
Mar10
Nov10
Jul11
North America Europe Brazil China
24
03 Construction
• US construction spending in non residential expected to remain subdued for the remainder of the year
• Infrastructure spending dependent on budgetary cuts, but anyhow so far steel exposure limited
• Residential construction seems to have bottomed but steel intensity is limited
• Early indicators like USA Architectural Billings Index point to a recovery in 2012 at the earliest
US
• Construction output is recovering in Germany and
the Baltic Sea area, stabilizing in France and
suffering further in Southern Europe
Europe
Eurozone construction
index
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Cons
truc
tion
spen
ding
s US
US Residential construction per month in mUSD US Non-Residential construction per month in mUSD
80
90
100
110
Eurozone construction spending Index
Construction in Europe and the US
25
03
• Automotive sales in the US are still robust with H1 being 12.8% above last year, but loosing momentum with June only being 3.0% above last year
• US automotive production that had been affected by parts shortages from Japan and seasonal model year change will return to more normal levels
• Machinery production in the US, esp. heavy, agricultural and mining equipment has been robust but the growth rate is slowing; industrial plant manufacturing has been improving
US and EU domestic car sales (in thousand units/quarter)
US
Europe • European car sales are expected to stay on high level
although wreckage premiums caused base effect
• Machinery in Europe still robust but losing momentum due to spill-over effects for exports fading out
2,000
2,500
3,000
3,500
4,000
4,500
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
EU sales US sales
Source: Bloomberg
Automotive, machinery and mechanical engineering
26
Agenda
02 Recent developments, financials and performance Q2 2011
03 Market environment
04 Outlook
05 Appendix
01 Overview
27
04 Preparing for slower growth with profitability action plan
2008 2009 2010* 2011e* 2012e*
Volumes -27 %
Capacities with Wave 1+2 -15 %
Reaction to current market expectations
• We prepare for slower growth scenario with profitability action plan to reach 6% target EBITDA-margin asap
• Measures focus on admin and overhead and structural changes in the country organizations
• Divestment of mid triple digit €m amount
• Net EBITDA contribution of mid double digit €m, majority already in 2012
• One-off costs of low double digit €m fully compensated by disposal proceeds
Organic volume development
28
04 Outlook
• Q3 2011• Volumes to be seasonally lighter on organic basis
• EBITDA expected seasonally below Q2 level
• Prices to stabilize during Q3 with upside potential after summer depending on supply balance and further macro economic trends
• Full year 2011 guidance• >25% volume and sales growth resulting from acquisitions expected with precondition that world
economies not entering into a recession
• Midterm EBITDA margin target of 6% not realistic to be achieved already in 2011
29
Agenda
02 Recent developments, financials and performance Q2 2011
03 Market environment
04 Outlook
05 Appendix
01 Overview
30
05 Appendix
Contact details Investor Relations
Dr. Thilo Theilen, Head of Investor Relations & Corporate Communications
Phone: +49 203 307 2050
Fax: +49 203 307 5025
E-mail: [email protected]
Internet: www.kloeckner.de
Financial calendar 2011/2012
November 9, 2011 Q3 interim report 2011
March 7, 2012 Annual Financial Statements 2011
May 9, 2012 Q1 interim report 2012
May 25, 2012 Annual General Meeting 2012
August 8, 2012 Q2 interim report 2012
November 7, 2012 Q3 interim report 2012
31
05 Quarterly results and FY results 2006-2011
(€m)Q2
2011Q1
2011Q4
2010Q3
2010Q2
2010Q1
2010Q4
2009Q3
2009Q2
2009Q1
2009FY
2010FY
2009FY
2008FY
2007FY
2006
Volumes (Tto) 1,763 1,498 1,318 1,368 1,448 1,180 966 1,033 1,053 1,068 5,314 4,119 5,974 6,478 6,127
Sales 1,885 1,587 1,332 1,401 1,416 1,049 873 934 959 1,095 5,198 3,860 6,750 6,274 5,532
Gross profit 337 353 275 294 331 236 198 208 161 78 1,136 645 1,366 1,221 1,208
% margin 17.9 22.3 20.6 21.0 23.4 22.5 22.6 22.3 16.8 7.1 21.9 16.7 20.2 19.5 21.8
EBITDA 62 104 48 61 100 29 83 11 -31 -132 238 -68 601 371 395
% margin 3.3 6.6 3.6 4.3 7.1 2.8 9.5 1.2 -3.2 -12.0 4.6 -1.8 8.9 5.9 7.1
EBIT 36 86 24 39 78 11 26 -7 -48 -149 152 -178 533 307 337
Financial result -21 -19 -19 -16 -17 -15 -16 -14 -15 -16 -67 -62 -70 -97 -64
Income before taxes 15 66 5 22 61 -4 9 -21 -63 -165 84 -240 463 210 273
Income taxes -9 -22 12 -7 -14 6 3 -2 16 38 -4 54 -79 -54 -39
Net income 5 44 17 15 47 2 12 -23 -47 -127 80 -186 384 156 235
Minority interests 0 1 1 1 1 1 3 0 1 -2 3 3 -14 23 28
Net income KlöCo 5 43 16 14 46 1 9 -23 -48 -126 77 -188 398 133 206
EPS basic (€) 0.07 0.65 0.25 0.21 0.69 0.02 0.56 -0.42 -1.04 -2.70 1.17 -3.61 8.56 2.87 4.44
EPS diluted (€) 0.07 0.60 0.25 0.21 0.69 0.02 0.56 -0.42 -0.85 -2.43 1.17 -3.61 8.11 2.87 4.44
* Pro-forma consolidated figures for FY 2005, without release of negative goodwill of €139 million and without transaction costs of €39 million, without restructuring expenses of €17 million (incurred Q4) and without activity disposal of €1.9 million (incurred Q4).
32
05
¹ Date of announcement 2 Sales in the year prior to acquisitions
Acquisitions1) Acquired sales1),2)
€141m
€567m
€108m
2
4
12
2
2005 2006 2007 2008 2009 2010
4
€231m
Acqu
isiti
on s
trate
gy s
uspe
nded
€712m
Country Acquired 1) Company Sales (FY)2)
GER Mar 2010 Becker Stahl-Service €600m
CH Jan 2010 Bläsi €32m
2010 4 acquisitions €712m
US Mar 2008 Temtco €226m
UK Jan 2008 Multitubes €5m
2008 2 acquisitions €231m
CH Sep 2007 Lehner & Tonossi €9m
UK Sep 2007 Interpipe €14m
US Sep 2007 ScanSteel €7m
BG Aug 2007 Metalsnab €36m
UK Jun 2007 Westok €26m
US May 2007 Premier Steel €23m
GER Apr 2007 Zweygart €11m
GER Apr 2007 Max Carl €15m
GER Apr 2007 Edelstahlservice €17m
US Apr 2007 Primary Steel €360m
NL Apr 2007 Teuling €14m
F Jan 2007 Tournier €35m
2007 12 acquisitions €567m
2006 4 acquisitions €108m
USA Dec 2010 Lake Steel €50m
USA Sep 2010 Angeles Welding €30m
2011
2
€1.15bnBrazil May 2011 Frefer €150m
USA April 2011 Macsteel €1bn
2011 2 acquisitions so far €1,150m
Strong Growth: 24 acquisitions, 2 in 2011
33
05 Balance sheet as of June 30, 2011
(€m) June 30, 2011
Dec. 31, 2010
Non-current assets 1,268 856
Inventories 1,393 899
Trade receivables 1,142 703
Cash & Cash equivalents 1,035 935
Other assets 98 98
Total assets 4,936 3,491
Equity 1,849 1,290
Total non-current liabilities 1,943 1,361
thereof financial liabilities 1,519 1,021
Total current liabilities 1,144 840
thereof trade payables 102 585
Total equity and liabilities 4,936 3,491
Net working capital 1,713 1,017
Net financial debt 600 137
Comments
Shareholders’ equity:• Stable at 37% despite NWC
increase, benefitting from capital increase
Financial debt:• Gearing at 36%
• Net debt position due to acquisitions increased business
NWC:• Swing mainly driven by acquisitions
and also due to increased business
34
05 Statement of cash flow Q2
Comments
• NWC changes due to increased business and acquisitions
• €444m were cash outflows for MSCUSA and Frefer
(€m) Q2 2011 Q2 2010
Operating CF 64 99
Changes in net working capital -188 -170
Others -13 14
Cash flow from operating activities -137 -57
Inflow from disposals of fixed assets/others 0 1
Outflow for acquisitions -444 0
Outflow for investments in fixed assets/others -10 -6
Cash flow from investing activities -454 -5
Capital increase 517 0
Changes in financial liabilities 430 196
Dividends -20 0
Net interest payments -21 -16
Repayments of financial liabilities in connection with business combinations -196 0
Cash flow from financing activities 710 180
Total cash flow 118 118
35
05 Segment performance Q2 2011
(€m) Europe Americas*HQ/
Consol. Total
Volume (Ttons)
Q2 2011 1,192 571 - 1,763
Q2 2010 1,162 286 - 1,448
Δ
% 2.6 99.6 21.8
Sales
Q2 2011 1,365 520 - 1,885
Q2 2010 1,180 236 - 1,416
Δ
% 15.7 120.4 33.1
EBITDA
Q2 2011 50 23 -11 62
% margin 3.6 4.4 3.3
Q2 2010 93 13 -6 100
% margin 7.9 5.4 7.1
Δ
% EBITDA -46.6 81.7 -38.3
Comments
• Excl. MSCUSA, Frefer and Lake Steel volume increase in Americas was 14.4% and sales increase was 23.5% yoy
• Without acquisitions total volume increased by 4.9% and total sales by 17.0% yoy
* in 2010 North America
36
05
Geographical breakdown of identified institutional investors
Current shareholder structure
Comments• Identified institutional investors account for 50%
• German investors incl. retail dominate
• Top 10 shareholdings represent around 26%
• Retail shareholders represent 20%
37
05
the earsattentive to customer needs
the eyeslooking forward to new developments
the nosesniffing out opportunities to improve performance
the ballsymbolic of our role to fetch and carry for our customers
the legsalways moving fast to keep up with the demands of the customers
Our symbol