Klöckner & Co (KCO) Baader Investment Conference presentation summary

Company overview and strategic direction

• Operates from Düsseldorf with about 120 locations and 6,500 employees, serving over 60,000 customers mainly in North America and Europe.

• Achieved €6,623 million in revenue and €136 million EBITDA in FY 2024, with a focus on higher value-added business (HVAB) and service center operations.

• Holds SBTI-approved net zero carbon targets and offers over 165,000 products.

• Generates around 60% of sales in North America, emphasizing a global network and optimized regional footprint.

• Strategic focus on digitization, automation, and sustainability, including CO2-reduced products under the NexigenⓇ brand.

Business transformation and growth initiatives

• Transitioned from steel distribution to metal processing, reducing exposure to steel price volatility.

• Expanded HVAB and service center business, now accounting for 80% of sales.

• Acquired and integrated value-accretive companies in North America and Europe, including Ambo Stahl and Haley Tool & Stamping.

• Invested in new aluminum and electrical steel processing facilities to support growth in automotive, industrial, and energy sectors.

• Benefiting from nearshoring trends and local-for-local business models in both North America and Europe.

Financial performance and position

• Q2 2025 shipments stable at 1,164 Tto, sales down 6.9% YoY to €1,643m due to lower prices, but gross profit up 8.8% to €320m.

• EBITDA before special effects rose to €65m in Q2 2025, with positive operating cash flow of €75m and net financial debt reduced to €870m.

• Equity ratio at 44%, gearing at 58%, and leverage at 5.4x as of June 2025.

• Dividend of €0.20 per share paid for 2023 and 2024, following a policy of distributing 30% of net income before special items.

• Share price declined in Q2 2025, closing at €5.97 on June 30, 2025.