Klöckner & Co (KCO) ODDO BHF NextCap Forum presentation summary

Company overview and market position

• Operates from Düsseldorf with 120 locations, serving over 60,000 customers mainly in North America and Europe, and employs around 6,500 people as of FY 2024.

• Achieved €6,623 million in revenue and €136 million EBITDA in FY 2024, with a focus on higher value-added business (HVAB) for improved profitability and reduced volatility.

• Holds 7% market share in North America and 9% in Europe, positioning as a leading player in fragmented steel and metal markets.

• Sales are concentrated in North America (59%), Germany/Austria (24%), and Switzerland (16%).

• Transitioned from a steel distributor to a metal processor, with 80% of sales now from service center and HVAB segments.

Strategic direction and sustainability

• Launched the "Step Up 2030" strategy, emphasizing higher value-added and service center business, operational excellence, and product/service diversification.

• Pursues strategic partnerships and customer-centric solutions, leveraging automation and digitalization for efficiency and value creation.

• Focused on expanding in strong future industries, with recent acquisitions in Germany and the US to enhance manufacturing and sector presence.

• Strong commitment to sustainability, offering CO₂-reduced products under the Nexigen® brand and winning multiple German Sustainability Awards.

• Science Based Targets initiative (SBTi) approved net zero carbon targets, aiming for significant emissions reductions by 2030 and net zero by 2040/2050.

Financial performance and capital structure

• Q1 2025 shipments rose 2.7% YoY, but sales declined 4.1% due to lower average prices; gross profit increased 6.6% with a margin of 19%.

• EBITDA before special effects remained constant at €42 million in Q1 2025; net financial debt increased to €914 million, mainly due to negative operating cash flow.

• Equity ratio stood at 46% and gearing at 58% as of March 2025, with a leverage of 6.7x.

• Maintains a diversified debt maturity profile, with major facilities renewed and a focus on reducing exposure to low-margin, cyclical businesses.

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