Klöckner & Co AG Annual General Meeting 2007

Transcription

1 Klöckner & Co AG Annual General Meeting June 2007 Dr. Thomas Ludwig

2 Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 2 HV 2007

3 Highlights 2006 Successful IPO and ongoing price performance Successful acquisitions and significant organic growth Outstanding earnings trend underpinned by the STAR Performance Program Disposals and sales of non-core activities Most successful year in the history of the company All targets met 3 HV 2007

4 Key Figures 2006 ( m) * Ä% Volume in to 000 6,127 5, Sales 5,532 4, EBITDA EBIT Net income Earnings per share in Net financial debt *2005: pro forma financial information 4 HV 2007

5 Key Figures Segments 2006 ( m) Europe North America Headquarter / Consolidation Total Sales , ,532 EBITDA HV 2007

6 Share Performance since IPO indexed IPO issue price 16 End 2006 plus 105% against issue price Inclusion in MDAX in January July 06 Aug. 06 Sept. 06 Oct. 06 Nov. 06 Dec. 06 Jan. 07 Feb. 07 Mar. 07 Apr. 07 May 07 June 07 Most successful IPO 2006 Klöckner & Co DAX MDAX 6 HV 2007

7 Dividend Payout ratio: 30% of Group result after non-recurring income Equals 0.80 / share (distribution total = 37.2 million) 7 HV 2007

8 Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 8 HV 2007

9 Global Reach LT CAN IRL UK F NL B G CH A CZ PL RO CN USA E About 250 locations (1 June 2007) 9 HV 2007

10 Global Reach Sales by country (2006) USA (incl. Primary 17%) Eastern Europe Netherlands 1% 6% 10% Canada 5% 23% Germany / Austria Great Britain 9% Spain 10% 15% 21% France / Belgium Switzerland 10 HV 2007

11 Broad Market Coverage Sales by industry (2006) Sales by product (2006) Other Construction 35% 40% 5% 20% Automotive Machinery / Manufacturing Other products Aluminum Special and Quality steel Tubes 8% 10% 9% 14% 31% 28% Steel-flat Products Steel-long Products 11 HV 2007

12 Good and expandable Market Positions Europe (2006) North America (2006) Ryerson Other mill-tied distributors ~ 15-25% ~ 45-55% Other independents 11% ArcelorMittal (Distribution = 5%) 8% 4% 7% ThyssenKrupp Klöckner & Co Corus 72.5% Other 4.7% 4.5% Reliance Steel 2.5% 2.1% ThyssenKrupp Materials NA 1.8% 1.8% Samuel, Son & Co 1.4% 1.4% 1.3% 1.3% 1.2% 1.0% 0.9% 0.9% 0.8% Russel Metals O'Neal Steel Namasco with Metals USA Primary MacSteel approx. 1.4% McJunkin Worthington Steel PNA Group Namasco (Klöckner & Co) AM Castle Carpenter Technology Olympic Steel Source: EuroMetal, company reports, own estimates Source: Purchasing Magazine (May 2007) 12 HV 2007

13 Market Trends support Klöckner & Co Strategy Globalization and consolidation Economies of scale and considerably more flexible capacity adjustments More stable volume trend and high price level support distributor earnings and margin development 13 HV 2007

14 Profitable Growth Profitable growth through value-added distribution and services within multi metals in Europe and North America Grow more than the market Continuous business optimization 1 2 Acquisitions driving market consolidation Organic growth and expansion into new markets 3 STAR program: Optimisation Purchasing Distribution network 14 HV 2007

15 Market Consolidation by Acquisitions in 2006 Country Acquired in Company Sales October 2006 Action Steel 55 million October 2006 Gauss 10 million July 2006 Aesga 18 million February 2006 Targe 25 million Sales in 2006: plus 108 million 15 HV 2007

16 Market Consolidation by Acquisitions in 2007 Country Acquired in Company Sales June 2007 Westok 26 million May 2007 Premier Steel 23 million April 2007 Stahlhandel Zweygart 11 million April 2007 Stahlhandel Max Carl 15 million April 2007 Edelstahlservice 17 million April 2007 Primary Steel 360 million April 2007 Teuling Staal 14 million January 2007 Tournier 35 million Sales to June 2007: plus 501 million 16 HV 2007

17 Organic Growth and Expansion into New Markets Optimization and selective expansion of the product program Increase of share of services with higher value-added Reinforced development in Eastern Europe 17 HV 2007

18 STAR Program Einkauf Distribution Optimization of purchasing Expansion of global purchasing in third countries Optimization of the distribution network 18 HV 2007

19 Results 2006 Acquisitions Organic growth STAR Program Disposals Four companies with over 108 million additional sales Almost half the sales growth Results improved by 20 million 100 million inflows from sale of non-core activities 2006: All targets met 19 HV 2007

20 Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 20 HV 2007

21 Targets 2007 Acquisitions Organic growth STAR program Expansion in Eastern Europe Ten to twelve acquisitions Significant share in overall growth Additional 40 million earnings contribution Development of new locations and acquisitions 2007: A very promising year 21 HV 2007

22 Key Figures for Q ( m) Q Q Ä% Volume in to 000 1,629 1, Sales 1,550 1, EBITDA EBIT Earnings after tax Earnings per share in HV 2007

23 Outlook 2007 General conditions Positive trend in the steel industry Expected economic growth in the relevant markets of between 1.8% and 5.0% Stable and increasing demand, especially in the construction and in the machinery / manufacturing industry Price trend stable or increasing 23 HV 2007

24 Outlook 2007 Forecast Klöckner & Co At least 15% sales increase, driven primarily by acquisitions EBITDA at level of previous year even without non-recurring income Dividend continuity: 30% payout ratio after deducting non-recurring income 24 HV 2007

25 Agenda Highlights Market and Strategy Outlook 2007 Comments on the Agenda (Items 8 to 10) 25 HV 2007

26 Item 8 Authorization to acquire own Shares Alignment to standard international practise Maximum of 10% of the shares can be acquired Authorization limited in time: valid 18 months Use of the shares Deployment as acquisition currency for acquiring companies or participations Servicing of issued options and convertible bonds (Agenda Item 9) 26 HV 2007

27 Item 9 Authorisation to Issue Options and/ or Convertible Bonds Total nominal amount up to 350 million Option / conversion rights to a total of up to 4,650,000 shares (i.e. 10% of the share capital) Option conditions can also stipulate (early) conversion requirement 27 HV 2007

28 Item 10 Creation of Contingent Capital 2007 To grant subscription and/or conversion rights Capital increased only if and to the extent that conversion rights/options are exercised and are not serviced otherwise Granting cash compensation With acquired own shares Option or conversion price: 135% of stock price Reference point: bond issuance 28 HV 2007

29 Symbol 29 HV 2007