Klöckner & Co SE

A Leading Multi Metal Distributor

Berenberg and Goldman Sachs

Fourth German Corporate Conference

Munich

CFO

Marcus Ketter

September 22, 2015

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”, “endeavor”, “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

Agenda

3

Overview01

Highlights H1 and update on strategy

Financials

Outlook

02

03

04

Appendix05

Outlook04

Klöckner & Co SE at a glance01

CustomersDistributor / Service CenterProducers

Products:

• Klöckner & Co is one of the largest producer-

independent distributors of steel and metal products and

one of the leading steel service center companies

• Distribution and service platform with around

220 locations worldwide

• Key figures for 2014

Shipments: 6.6 million tons

Sales: €6.5 billion

EBITDA: €191 million

Services:

• Machinery

and

mechanical

engineering

• Yellow Goods

• White Goods

• Miscellaneous

• Automotive

• Commercial/

residential

construction

• Infrastructure

4

37%

12%

32%

19%

Global reach – local presence01

• With around 220 locations in 15 countries we assure local availability for our customers

• Austria

• Belgium

• Brazil

• China

• England

• France

• Germany

• Ireland

• Mexico

• Netherlands

• Puerto Rico

• Scotland

• Spain

• Switzerland

• USA

USA:

36%

Brazil:

<1%

China:

<1%

D:

24%

F/BE:

13%

CH:

15%

NL:

3%UK:

6%

ES: 2%

Europe:

63%

5

As of December 2014

Exit planned

for year end

2015

1%

Reliance

Ryerson

TK

Samuel

O'Neal

Russel

Macsteel

Metals USA

PNA

Namasco

Others

Europe

US

2007 2014

5%Arcelor Mittal

ThyssenKrupp

KCO

Salzgitter

Tata

Others

7%Arcelor Mittal

ThyssenKrupp

KCO

Salzgitter

Tata

Others

3%Reliance

Ryerson

KloecknerMetals

ThyssenKrupp

Others

• Position in the US significantly improved whereas market share in Europe is expected to remain

stable despite heavy restructuring measures

Klöckner is together with TK the second largest steel and metal distributor in Europe

and number three in the US01

Source: Eurometal, Purchasing Magazine, Service Center News

ThyssenKrupp

6

~3,000

~1,200

Still weak steel demand in Europe and high global overcapacities01

Overcapacity of steel by region (2014)

Source: Worldsteel

Steel demand total (in mt)

EU-28

2013201220112010200920082007 2014 2015e

200

180

160

140

120

100

80

60

40

20

-24%

NAFTA

2013201220112010200920082007 2014 2015e

140

120

100

80

60

40

20

+1%-1%

+2%

NAFTA

~20

South

America

~25

Europe

~80China

~270India

~20

CIS

~35Japan

~20

Other:~115

World:~585

Source: Bank of America Merrill Lynch, own estimates; in mt

7

Difficult start in 2015 due to price collapse in the US at the beginning of the year01

8

40%

50%

60%

70%

80%

90%

100%

Worldwide capacity utilization

Jun 08

92.7%

Dec 08

59.8%

Apr 10

84.4%

Dec 10

74.5%

Jun 11

83.4%

Dec 12

72.0%

Feb 13

80.5%

Jul 15

68.4%

Dec 13

72.7%

Mar 14

78.8%Feb 15

73.4%

Steel price development HRC

300

350

400

450

500

550

600

650

700

750

800

Q4 2014 Q1 2015 Q2 2015Q3 2014

Europe ($/mt) China ($/mt)USA ($/mt)

Agenda

9

Overview01

Highlights H1 and update on strategy

Financials

Outlook

02

03

04

Appendix05

Outlook04

Q2: Improving environment in CH, mixed in the US and still weak in France02

10

• Exchange rate related price erosion halted

• More favorable procurement opportunities outside Switzerland due to stronger Swiss Franc “Euro discount”

• Steel demand from construction industry remains healthy

• Easing import pressure led to slight recovery of steel prices after strong downturn but attempts to increase prices further not successful

• Continuing weak volume development in the oil & gas sector and agriculture but increasing demand in all other sectors

• Filing of trade cases could help to bring market in better balance but inventories still too high and unknown volumes of imported steel still in ports

• Construction market remains in crisis mode despite increasing GDP

• Large scale commodity business with weak demand and heavy pressure on prices

• Only moderate recovery of steel demand expected in the coming years

EBITDA in H1 heavily impacted by adverse market effects02

11

CommentsEBITDA impactQ2 yoy

36

56

2

KCO

WIN

Effect

2

Price

Effect

-19

Volume

Effect

-15

Q2

2014*

Q2

2015

(rep.)

-17

Restruc-

turing

costs

-52

Net f/x

effects

2

OPEX

8

Other

Effects

( mainly

IFRIC

21)

Market related

GP effect of €-34m

Q2

2015

(bef.

restr.)

H1 yoy

46

101

-52

Net f/x

effects

3

OPEX

1

Other

Effects

( mainly

IFRIC

21)

-7

KCO

WIN

Effect

5

Price

Effect

-41

Volume

Effect

-7

Restruc-

turing

costs

H1

2015

(rep.)

-16

H1

2014*H1

2015

(bef.

restr.)* Before initial application of IFRIC 21.

Market related

GP effect of €-57m

• Results significantly burdened by

negative market effects of -€34m in

Q2 and totally -€57m in H1

• Negative volume effect of €15m in

Q2 and €16m in H1 due to

continuously weak markets esp. in

the US

• Negative price effect of €19m in

Q2 and €41m in H1 mainly due to

deteriorating prices in the US and

f/x related also in CH

• Income statement figures highly

skewed by currency effects

excl. f/x effect +€32m

excl. f/x effect +€60m

excl. f/x effect -€30m

excl. f/x effect -€57m

KCO WIN significantly extended towards KCO WIN+02

12

All countries France* Further European

countries China Total

Scope

• Operating

optimization

• Decreasing

complexity and

focusing on the

proximity business

• Further reduction of

commodity business

and downsizing of

administrative

functions

• Full exit

Measures

• Optimized pricing

• Sales force

effectiveness

• Purchasing

excellence

• Warehouse

management and

logistics

• Consolidation and

closure of 11 sites

• Headcount reduction

of ~310

• Forced exit of large

customer commodity

business

• Downsizing of

country holding

• Consolidation and

closure of 5 sites

• Headcount reduction

of ~260

• Downsizing of

country holdings

• Closure of

SSC in

Changshu

• Headcount

reduction of

~35

* Measures which are submitted to the workers` council for an opinion.

+• Consoli-

dation

and

closure

of

17 sites

• Head-

count

reduction

of ~600

KCO WIN+ effects02

13

• EBITDA effect

• Total one-off effects of €52m

• Overall KCO WIN+ effect of up to €60m from 2017 onwards

• Existing measures adjusted against the background of deteriorating market conditions

• New measures with incremental effect of €30m in the coming two years

• Significant share thereof already in 2016

• Cash effect

• Cash out to be overcompensated by working capital release in 2016

• Additional positive midterm effect through asset sales

2014/2015

2016/2017

Total annual EBITDA impact of up to €60m from 2017 onwards

€26m

~€30m

€21m

already realized

“Klöckner & Co 2020“ growth strategy to drive the change02

14

Klöckner & Co 2020

Growth and

optimization

Operations

External &

internal growth

Digitalization

Products and

services

• Development and group wide rollout of innovative digital tools by kloeckner.i to

further increase customer benefits

• Digital integration of customers and suppliers across a wide range of interfaces

• Entry into Industry 4.0 business through digital networks with machines

automatically ordering new stock

• Additional staffing at kloeckner.i from currently 15 to 20 employees until year-end

• Extension of 3D-Laser-Center in the UK and starting up new tube laser in the US

• Significant expansion of investments in higher value-added products and services

• KCO WIN+ including additional restructuring measures in France and further

structural optimization measures in other European countries

• Acquisition of higher value-added business intended until year-end

• Regional focus on the US market due to good growth perspectives

Current focus

Differentiation

Developing of first integrated digital service platform for steel and metal distribution02

Customer side:

• Onboarding of first customers started this month

• Full roll-out in H1 2016

Supplier side:

• Supplier integration started

• Ongoing ideation and prototyping with partners

15

Agenda

16

Overview01

Highlights H1 and update on strategy

Financials

Outlook

02

03

04

Appendix05

Outlook04

Main factors for profitability in 201503

17

• Foreign currency changes: USA-Euro and CHF-Euro (somehow GDP)

• Import pressure and price decrease of 24% in the USA

• “Euro-Discount”-Pressure in Switzerland in Q1 & Q2

• Restructuring in France, UK, Switzerland, China (closed) and country

headquarters

• No market support in the USA and Europe

• Prices in Q3 trickling down further

1,698

1,600

1,455

1,572

1,680 1,675

1,577

1,697 1,693

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

1,690

1,617

1,492

1,633

1,720

1,690

1,555

1,6611,645

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Shipments and sales03

Sales (€m)Shipments (Tto)

• Decrease yoy and qoq driven by the weak

market situation in Europe and Americas

• yoy increase despite lower shipments due to

strong US Dollar and Swiss Franc

• Sales decreased qoq in less pronounced than

shipments

18

-4.4%

-1.0%

+0.8%

-0.3%

Gross profit and EBITDA – strong sequential upward momentum03

19

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

• Gross margin with 19.2% stable yoy

• qoq gross margin improved from 18.2% by 1.0%p

• EBITDA before restructuring burdened by weak

market situation

• EBITDA margin before restructuring therefore down

by 1.4%p to 2.1% yoy but improved qoq by 1.5%p

305

296

288

302

325 325

309 310

325

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

* Before restructuring cost.

** Prior year amount restated due to the inital application of IFRIC 21 (Levies).

EBITDA* (€m) / EBITDA margin* (%)

18.018.5

19.819.2 19.3

19.4 19.6

18.2

19.2

4339 40 39

5861

33

10

36

Q22013

Q32013

Q42013

Q12014**

Q22014**

Q32014**

Q42014**

Q12015

Q22015

2.5 2.42.7

2.5

3.5 3.6

2.1

0.6

2.1

XX Segment performance (shipments and sales)03

20

• Shipments

• European shipments lower by 1.7%

• Americas is down by 7.9% due to a very weak market

Sales (€m)

Comments

• Sales

• Europe sales down in line with weaker market

(-1.7%). However, lower prices were compensated by

the strong Swiss Franc and the British Pound

• Americas segment sales increased due to a favorable

f/x development

733

987 970

675

-4.4%

Americas

Europe

Q2 2015

1,645

Q2 2014

1,720

-1.7%

-7.9%

Europe

+0.8%

Americas

Q2 2015

1,693

639

1,054

Q2 2014

1,680

608

1,072

Shipments (Tto)

-1.7%

+5.2%

Segment performance (gross profit and EBITDA)03

21

• Europe

• Gross margin up by 0.6%p to 21.0%

• EBITDA down yoy by €4m but strong improvement

qoq by +€21m

• EBITDA margin down yoy by 0.4%p to 2.7%

• Americas

• Gross margin down by 1.3%p to 16.2%

• EBITDA down yoy by €17m with signs of

improvement qoq (net f/x effect €2.4m)

• EBITDA margin down by 2.9%p to 2.0%

Gross profit (€m)* Comments

EBITDA (€m)*

106

222

325

+0.2%

Europe

Q2 2014

103

325

Americas

Q2 2015

219 +1.5%

-2.5%

33

29

-5

3013

58

-6

Q2 2014** Q2 2015

-39.0%

Europe 36

HQ/Consol.

Americas

-13.0%

-57.1%

* Before restructuring costs.

** Prior year amount restated due to the inital application of IFRIC 21 (Levies).

Financing and liquidity: Generating cash in downturn again03

22

Operating cash flow YTD 06/2015Comments

36

Net financial debt 06/2014 vs 06/2015

• Net financial debt reported skewed due to

translation effects and impact of f/x swaps

• On a like-for-like basis net financial debt

decreased from €579m to €419m

• Strong cash flow generation in Q2 by

release of NWC

• Business model continues to generate

cash in downturn

• Other in Q2 includes €52m restructuring

• Oper. CF YTD 06/2014: -€148m

160

F/X transl.

571

-81

NFD 06/2014

419

Net Debt

06/2015 lfl

NFD

06/2015 rep.

579

F/X swaps

Operating

reduction

of NFD

-71

Q1: Op. CF -€111m

10-15

-17

EBITDA

Q2/2015

-131

OtherEBITDA

Q1/2015

-111

Oper.

CF YTD

03/2015

10

30

Oper.

CF YTD

06/2015

Other

83

Change

in NWC

Change

in NWC

Q2: Op. CF +€96m(€m)

(€m)

Despite redemption of promissory notes and convertible sufficient financial headroom03

23

Funding portfolio - static analysis

Facility

- €m -

Committed

30.06.2015

Drawn amount (nominal

values)

30.06.2015CB put,

payback PN

Syndicated Loan 360 0

ABS (Europe, US) 606 285 285

ABL (US) 290 72 72

Promissory Notes 133 134 0

Convertible 2010 186 185 0

Bilateral Facilities 337 199 199

Total Debt* 1,912 875 556

Cash 304 50

Net Debt 571 571

* Excl. interest accrued and equity component of convertible bond.

Maturity profile of main facilities (in €m)

186133 360300

245

290

31

2016

Apr.

854

2018 Thereafter

378

2017

19

2015

Dec.

18

Holding facilitiesABS

Promissory notes

Bilaterals

ABS EUABL US

Convertible

65

Investor

put right

Agenda

24

Overview01

Highlights H1 and update on strategy

Financials

Outlook

02

03

04

Appendix05

Outlook04

EBITDA break-even analysis 2013-201704

25

1) Assumes re-investment in line with depreciation.

2) Excludes restructuring impairment losses of €24m in 2013.

3) Assumes repayment of Convertibles and Promissory Notes through cash and min. average cash of €110 million, excludes impact of Frefer put option of €3m in 2013.

7661

4636 34

54

56

71 75

51

37

3424 18

2015

131

182

2013

127

2017

154

2014

61

141

2016

Financial result(3)

Amortization(1)

Depreciation(2)

Mainly

Convertible ’14:

and

Promissory Note

In case of no-put:

./. ≤15.9mIn case of no-put:

+ <8m

In case of no-put:

+ <8m

Mainly

Convertible ’14:

and

Promissory Note

and F/X

Mainly

Convertible ’15:

and

Promissory Note

ppappappa

ppa

FY

Segment specific business outlook 201504

US

Real steel demand

Europe

+0-1% +0-1%

Construction industry

Manufacturing, machinery and

mechanical engineering, etc.

Automotive industry

26

Energy industry

Outlook 04

• FY 2015

• Sales to be slightly up; negative effect of anticipated lower steel price level to be

overcompensated by currency effects

• EBITDA before restructuring measures expected to be significantly down

27

Agenda

28

Overview01

Highlights H1 and update on strategy

Financials

Outlook

02

03

04

Appendix05

Outlook04

Quarterly results and FY results 2012-201505

(€m)Q2

2015

Q1

2015

Q4

2014*

Q3

2014*

Q2

2014*

Q1

2014*

Q4

2013

Q3

2013

Q2

2013

FY

2014

FY

2013

FY

2012**

Shipments (Tto) 1,645 1,661 1,555 1,690 1,720 1,633 1,492 1,617 1,690 6,598 6,445 7,068

Sales 1,693 1,697 1,577 1,675 1,680 1,572 1,455 1,600 1,698 6,504 6,378 7,388

Gross profit 320 310 309 325 325 302 284 296 305 1,261 1,188 1,288

% margin 18.9 18.2 19.6 19.4 19.3 19.2 19.5 18.5 18.0 19.4 18.6 17.4

EBITDA rep. -17 10 33 61 58 39 16 36 43 191 124 60

% margin -1.0 0.6 2.1 3.6 3.5 2.5 1.1 2.3 2.5 2.9 2.0 0.8

EBIT -44 -15 8 38 36 17 -36 10 17 98 -6 -105

Financial result -13 -12 -13 -14 -16 -17 -17 -19 -19 -59 -73 -80

Income before taxes -56 -27 -4 24 19 0 -52 -8 -2 39 -79 -185

Income taxes 1 6 1 -8 -7 -2 -7 -3 -2 -17 -12 -18

Net income -55 -22 -4 16 12 -2 -59 -11 -4 22 -90 -203

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

Net income KlöCo -54 -21 -4 16 12 -2 -54 -11 -4 22 -85 -200

EPS basic (€) -0.54 -0.22 -0.04 0.16 0.12 -0.02 -0.54 -0.11 -0.04 0.22 -0.85 -2.00

EPS diluted (€) -0.54 -0.22 -0.04 0.16 0.12 -0.02 -0.54 -0.11 -0.04 0.22 -0.85 -2.00

* Restated due to initial application of IFRIC 21.

** Restated due to initial application IAS 19 revised 2011.

29

Segment performance05E

uro

pe

Am

ericas

EBITDA*,** before restructuring (€m)

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

Restructuring costs (€m) Q3 2013 Q4 2013 Q2 2015

Europe 13 52

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

and sale of French La Courneuve site €13m.

Shipments (Tto) Sales (€m)

30

941

903

839

956987

957

893

979 970

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

1,061

1,006

935

1,015

1,072

1,041

973

1,025

1,054

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

2826

34

23

33 34

18

8

29

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

749

714

653

677

733 733

662

682675

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

637594

520557

608634

604

672639

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

20 20

13

21

29 30

20

7

13

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

-1.7% -1.7%

-7.9% +5.2%

* 2014 amounts restated due to the inital application of IFRIC 21 (Levies).

Profit & loss 201505

(€m) Q2 2015 Q2 2014*

Sales 1,693 1,680

Gross profit 320 325

Personnel costs -193 -146

Other operating expenses (net) -144 -121

EBITDA -17 58

Depreciation & Amortization -27 -23

EBIT -44 36

Financial result -13 -16

EBT -56 19

Taxes 1 -7

Net income -55 12

Minorities -1 0

Net income attributable to KCO shareholders -54 12

* 2014 restated for the initial application of IFRIC 21.

31

• Equity ratio further healthy at 38%

• Net debt of €571m

• Gearing* at 41%

• NWC increased from €1,321m to €1,452m

Strong balance sheet05

* Gearing = Net debt/Equity attributable to shareholders of

Klöckner & Co SE less goodwill from business

combinations subsequent to May 23, 2013.

Comments

Assets

746 918

304316108146

1,318

1,103

Other current assets

Liquidity

3,714

Trade receivables

Inventories

Non-current assets 1,168

3,629

1,216

426

743 682

328 330

781 869

348

Equity

Pensions

Other liabilities

Trade payables

Financial liabilities

1,407

3,629 3,714

1,429

Equity & liabilities

39%38%

Jun 30, 2015Dec 31, 2014 Dec 31, 2014 Jun 30, 2015

32

Sales by markets, products and industries05

As of December 31, 2014

Sales by markets Sales by industry

Sales by product

33

Current shareholder structure05

Geographical breakdown of identified

institutional investors• Identified institutional investors

account for 66%

• German investors incl. retail

dominate

• Top 10 shareholdings represent

around 35%

• Retail shareholders represent 31%

Comments

As of July 2015

34

Rest of World 8%

Rest of EU 3%

US 50%

France 8%

Germany 20%

UK 7%

Switzerland 4%

Current shareholder structure05

35

Voting Rights Announcements according to WpHG (Security Trading Act)*

*) The table lists all shareholders, whose Klöckner & Co SE voting shares currently exceed one of the notification thresholds under section 21 clause 1 WpHG, based on notification.

Date of publication Subject to compulsory notification Portion of voting

stock

29/07/2015 UBS Group AG 3.53%

28/07/2015 Swoctem GmbH / Friedhelm Loh 10.38%

27/05/2015 Federated Global Investment Management Corp. 5.06%

04/03/2015 Franklin Mutual Series Funds 3.07%

02/06/2014 Interfer Holding GmbH 4.98%

07/04/2014 Templeton Investment Counsel, LLC 5.02%

18/03/2014 Franklin Mutual Advisors – included therein:

Franklin Templeton Investment Funds (3.15%)

5.35%

08/01/2013 Franklin Templeton Investments Corp. 4.99%

02/02/2012 Dimensional Holdings Inc. /

Dimensional Fund Advisors LP

3.06%

Products 05

36

Hollow SectionsFlat Products

Long Products Stainless / Aluminium

Products / Services 05

37

Coils Decoiling / Cutting / Slitting

Cutting to Length / Bending Surface treatment

Services 05

38

3D-Laser 3D-Laser

3D-LaserLaser cutting / Flame cutting

Appendix05

Contact details Investor Relations

Christian Pokropp, Head of Investor Relations & Corporate Communications

Phone: +49 203 307 2050

Fax: +49 203 307 5025

Email: christian.pokropp@kloeckner.com

Internet: www.kloeckner.com

Financial calendar 2015/2016

November 3, 2015 Q3 interim report 2015

March 1, 2016 Annual Financial Statements 2015

May 4, 2016 Q1 interim report 2016

May 13, 2016 Annual General Meeting 2016, Düsseldorf

August 4, 2016 Q2 interim report 2016

November 3, 2016 Q3 interim report 2016

39

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