Klöckner & Co (KCO) Presentation ODDO BHF NEXTCAP FORUM presentation summary

Company overview and market position

• Employs approximately 6,400 people, serves over 60,000 customers, and operates at more than 120 locations worldwide.

• Achieved €6,957 million in sales and shipped 4,248 thousand tons in FY 2023.

• Holds a 9% market share in Europe and 7% in the USA, positioning as a leading player in fragmented steel and materials markets.

• Offers a broad portfolio of around 190,000 products and comprehensive value chain services from sourcing to distribution.

Strategic focus and transformation

• Pursuing a one-stop-shop model for steel, materials, equipment, and processing services in Europe and the Americas.

• Emphasizes digitalization, automation, and operational excellence to drive efficiency and customer-centricity.

• Strengthened focus on high-value-added business (HVAB) and core markets by divesting low-margin European distribution and expanding in North America.

• Acquired Industrial Manufacturing Services and Sol Components to enhance fabrication and renewable energy offerings.

• Completed a European efficiency program and paid a third consecutive dividend.

Financial performance and segment results

• Q1 2024 shipments rose 4.8% year-over-year, but sales declined 5.6% due to lower average prices.

• EBITDA before special effects was €42m in Q1 2024, within guidance, despite a challenging macro environment.

• Net financial debt increased to €790m, mainly due to acquisitions, but deleveraging efforts are ongoing.

• Americas segment saw shipment and sales growth, while Europe experienced declines in both metrics.

• Maintains a solid equity ratio of 48% and gearing of 47%.