Klöckner & Co - 3rd ltaú BBA Commodities Conference 2011

Klöckner & Co SE A Leading Multi Metal Distributor

3rd Itaú BBA Commodities ConferenceSeptember 2011, Rio de Janeiro

Gisbert RühlCEO/CFO

2

Ein- bis zweizeiliger Folientitel00 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”, “strive”, “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.

3

Agenda

02 Recent developments, financials and performance Q2 2011

03 Market environment

04 Outlook

05 Appendix

01 Overview

CustomersDistributor/ Service CenterProducersProducts:

Klöckner & Co SE

Largest producer-independent steel and metal distributor in Europe and America combined

Distribution and service platform with around 290 locations

Key figures for 2010Sales volumes: 5.3 million tonsSales: €5.2 billionEBITDA: €238 million

Services:

4

Ein- bis zweizeiliger Folientitel

Machinery and mechanical engineering

Yellow Goods

White Goods

Miscellaneous

Automotive

Commercial/ residential construction

Infrastructure

01 Klöckner & Co SE at a glance

5

Suppliers Sourcing Products and services

Logistics / distribution

• As a producer- independent distributor, our customers benefit from our diverse national and international procurement options

Customers

• Procurement of large quantities

• Strategic partnerships

• Extensive product range

• Excellent product and processing quality

• Wide-ranging service provision

• Local presence• Individual delivery,

including 24-hour- service

• More than 170,000 customers

• Average normal order size approx. €2,000

• Service and availability more important than price

Holistic solution from covering procurement, logistics and processing

Klöckner & Co value chain

01 Business model

6

Agenda



04 Outlook

05 Appendix

01 Overview

7

02 Highlights Q2

• Challenging quarter due to unexpectedly strong price pressure in all markets leading to an

EBITDA of €62m (3.3% margin), negatively impacted by one offs of €10m (3.8% adjusted

margin)

• Sales volumes increased organically less than typical seasonally due to prebuying effect in

Q1 rolling over and a cautious stance of customers in Q2

• Consolidation of Macsteel and Frefer completed

• Integration of Macsteel and Namasco in the US progressing, synergies higher than initially

expected

• Principle agreement to terminate the earn-out for Macsteel will lead to reduced purchase

price by USD60m and earlier realization of synergy effects

• Capital increase with net proceeds of €517m provides strong backing for

Klöckner & Co 2020

8

02 Steel imports caused pressure in all markets

• Orders to the US were placed during Q1 when the spread between domestic and import prices justified it and domestic prices were still rising

• Imports rose by 26% in Q2 to an average of 2.4m to/month compared to 1.9m to/ month in Q1

• HRC price dropped by USD220 per st since peak

• Fewer imports in the coming months expected due to lower domestic prices and uncertain economic environment

US imports of steel products (in kto/ month)

EU imports of steel products (in kto/ month)

US

• Flat steel import licenses increased by 67% in H1 vs. last year to an average of 1.8m to/ month reaching the peak in May

• HRC dropped by €75 per ton since peak

• Eurometal expects imports into EU to grow by 26% in 2011

Europe

Source: US Census bureau, Eurostat/ Eurometal

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jul07

Nov07

Mar08

July08

Nov08

Mar09

Jul09

Nov09

Mar10

Jul10

Nov10

Mar11

Jul11

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jul07

Nov07

Mar08

July08

Nov08

Mar09

Jul09

Nov09

Mar10

Jul10

Nov10

Mar11

Jul11

700

800

900

1,000

1,100

Jan Feb Mar Apr May Jun

Procurement prices in €/ to Inventory value in €/ to Selling prices in €/ to

9

02 Margin squeeze through pricing environment in Q2

H1 comparison of procurement prices, inventory values and selling prices

• Inventory values per ton still increased during the quarter whereas selling prices already leveled off and procurement prices softened

* Figures not comparable due to adjustments for Frefer & Macsteel, inventory allowances and mix effects

19.4% Gross margin*11.7% Gross margin*

10

02 Steel cycles get shorter and more pronounced

Source: SBB

HRC price development

-150

-100

-50

0

50

100

150

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Cha

nge

in U

SD p

er to

n

• Price volatility increasing due to switch to monthly contract prices, persisting overcapacity and overall lower inventories compared to pre-crisis levels

• Raw material cost inflation and change to quarterly or even spot basis

• Customers’ price sensitivity increased even pronouncing price cycles due to opportunistic buying behavior with negative impact on stockholding distribution

HRC price changes since 2005

11

02

EBITDA

€100m€62m

-38.3%

Q2 2011Q2 2010€331m €337m

+1.8%

Q2 2011Q2 2010

Gross profit

€1,416m

€1,885m+33.1%

Q2 2011Q2 2010

SalesSales volumes

1,448 Tto

+21.8%

Q2 2010 Q2 2011

1,763 Tto

Key financials Q2 2011

1,033 9661,180

1,448 1,368 1,3181,498

1,763

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

934 8731,049

1,416 1,401 1,332

1,587

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

12

02

Sales (€m)Sales volumes (Tto)

Sales volumes and sales

+21.8% +33.1%

+17.7% +18.8%

1,885

Gross profit (€m)/ Gross-margin

0

2

4

6

8

10

12

Ein- bis zweizeiliger Folientitel02 Gross profit and EBITDA

13

EBITDA (€m)/ EBITDA-margin

22.3% 22.6% 22.5%23.4%

21.0%20.6%

22.3%

17.9%

• Margins decreased due to increasing inventory values while sales prices were declining during Q2

• EBITDA negatively impacted by €10m one-offs, whereof €15m write downs on inventories

9.5%

1.2%2.8%

7.1%

4.3% 3.6%

6.6%

3.3%1 3

Reihe1

6.6%

11

83

29

100

61

48

104

62

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

208 198236

331294

275

353 337

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

14

Ein- bis zweizeiliger Folientitel02 Net income and earnings per share

EPS basic (€)*Net income (€m)

* adjusted for capital increase

-23

12

2

47

15 17

44

5

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

-0.42

0.56

0.02

0.69

0.21 0.25

0.65

0.07

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

-227 -600

-137

Capex Other**

15

Ein- bis zweizeiliger Folientitel02 Cash flow predominantly impacted by acquisitions and capital increase

Development of net financial debt in Q2 (€m)Cash flow reconciliation in Q2 (€m)

** exchange rate effects, interest

Q1 Q2

-137-591

62

EBITDA Change inNWC

Taxes Other

CF fromoperatingactivities Capex

Free CF

-20

517

-444

Acquisitions*

-10

Capital increase

Acquisitions*

AssumedDebt

-43-444

-236

* net of cash acquired / capital increase in Frefer

-10-188

9

CF fromoperatingactivities

Dividends

-20

784 730909

1.1621.084 1.029

1.164 1.192

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

16

Ein- bis zweizeiliger Folientitel02 Segment performance Q2 2011

Volumes (Tto) Sales (€m) EBITDA (€m)

** Without acquisitions in 2011

Volumes (Tto) Sales (€m) EBITDA (€m)

** * * * * ** *

Eur

ope

Am

eric

as

249 236 271 286 284 289334

571

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

159 143191

236 232 228297

520

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

103

913

5 7

3023

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

775 730858

1.1801.1691.1041.290 1.365

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

4

143

25

93

6045

81

50

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

+2.6% +15.7%

+99.6%/ +14.4%** +120.4%/ +23.5%**

* Consolidation of BSS as of March 1, 2010

17

02 Integration of Macsteel Service Centers USA progressing

Key facts Macsteel• Consolidation as of May 1, 2011• Sales volume contribution in Q2: 223kTo• Sales contribution in Q2: €211m• EBITDA contribution in Q2: €8m (w/o PPA €10m)• Principle agreement to terminate the earn-out for Macsteel

will lead to reduced purchase price by USD60m and earlier realization of synergy effects

• Continues to be a positive and great fit• Synergy potential higher than initially expected• Fields of synergies are marketing and sales, national key

accounts, products and facilities, purchasing, personnel, cross utilization of assets and logistics

• Integrated entities will be rebranded to Klöckner• Management team in place

Klöckner North America Macsteel Combined

North America

Geographic reach (North America)

32 locations

30 locations

62 locations

Market position (North America) #10 #8

#3 in multi metal, #2 in carbon steel

SSC business expansion —

Product mix improvement

Plate and long focused Flat products Improved

sales mix

Plate Processing Service Center

Plate Processing and Fabrication Service Center


Hawaii

Puerto RicoMexico

Macsteel Map Legend

Headquarters

General Line Service Center

Flat Rolled Processing Center

Namasco Map Legend


Plate Processing and Fabrication Service Center


Hawaii

Puerto RicoMexico

Macsteel Map Legend

Headquarters

General Line Service Center

Flat Rolled Processing Center

Namasco Map Legend

Combined locations

Update on integration status

18

02 Frefer faced with market in a transition period

Key facts Frefer

Market environment in Q2

• Consolidation as of June 1, 2011• Sales volume contribution in Q2: 9kTo• Sales contribution in Q2: €7m• EBITDA contribution in Q2: €-0.6m (w/o PPA €-0.9m)• Entry into long steel market in Brazil with preferred supplier

under consideration to broaden product portfolio

Frefer: 14 locations in Brazil

• Difficult situation due to price pressure coming from imports and overstocking, but mid- to longterm perspectives remain promising

• Stock ratios steadily decreasing being currently at 3.4 months of supply pointing to a turnaround

• Longterm prospects of the market being rather incrementally positive

Source: SECEX, Alice Web, Barclays Capital

Flat steel imports (kt)

0

50

100

150

200

250

300

350

400

450

500

May08

Jul08

Sep08

Nov08

Jan09

Mar09

May09

Jul09

Sep09

Nov09

Jan10

Mar10

May10

Jul10

Sep10

Nov10

Jan11

Mar11

May11

Jul11

HeadquartersBranches

02

19

Q2 2011 (in €m) Strong balance sheet ratios• Net debt €600m

• Gearing* at 36%

• Equity ratio at 37%

* Gearing = Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010

1,268

1,393

1,142

98 / 23*

1,035

€4,936m

1,849

1,943

1,144

Non-currentassets

Inventories

Trade receivables

Liquidity

Othercurrent assets

Equity

Non-currentliabilities

Current liabilities

149*

148*

37*

164*

332*

457*

*Thereof MSCUSA and Frefer proportion

Frefer 74 MSCUSA 383

Frefer 2 MSCUSA 21

Impact of MSCUSA & Frefer consolidation (as of June 30, 2011):



• Non-current assets include intangible assets (customer relations, trade name) of €171.2m and goodwill of €147.5m as well as property, plant and equipment of €112.5m

• Net working capital contribution of €383.8m

• Transaction volume €680.2m

• D&A for the Group will increase in 2011 by ~€30m (incl. PPA) and thereafter annual run rate ~€40m



Frefer 33 MSCUSA 4

02 Balance sheet as of June 30, 2011

Sales/ NWC as percentage of sales

20

02 NWC / sales remains constantly below 20%

0%

5%

10%

15%

25%

30%

0%

5%

10%

15%

25%

30%

20%

0

1,000

1,500

2,000

2,500

* adjusted for MSCUSA and Frefer

1,39

4

1,39

8

1,55

0

1,65

0

1,58

3

1,49

2

1,66

0

1,92

2

1,77

3

1,39

4

1,09

5

959

934

873

1,04

9

1,41

6

1,40

1

1,33

2

1,58

7

1,88

5

22%

20%21%

23% 23% 22% 21% 21%

24% 25%23%

20% 19%18%

19% 19% 19% 19%

500

Q32006

Q42006

Q12007

Q22007

Q32007

Q4 2007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q4 2009

Q1 2010

Q22010

Q32010

Q42010

Q12011

Q22011

0%

5%

10%

15%

25%

30%

Sales in €m NWC as % of sales (4x quarterly sales)

18%20%*

500

02

€m Drawn amount

Facility Committed Q2 2011* FY 2010*

Bilateral Facilities1) 580 250 73

Other Bonds 40 41 0

ABS 560 221 88

Syndicated Loan 500 226 226

Promissory Note2) 343 345 147

Total Senior Debt 2,023 1,083 534

Convertible 20073) 325 314 306

Convertible 20093) 98 81 81

Convertible 20103) 186 157 151

Total Debt 2,632 1,635 1,072

Cash 1,035 935

Net Debt 600 137

*Including interest 1) Including finance lease; volume increased in connection with the acquisition of Macsteel 2) New promissory notes issued in Q2 2011 (€198m) 3) Drawn amount excludes equity component 4) Net debt/Equity attributable to shareholders of Klöckner & Co SE less goodwill from business combinations subsequent to May 28, 2010

€mQ2

2011

Equity 1,849

Net debt 600

Gearing4) 36%

Maturity profile of committed facilities and drawn amounts (€m)

Credit limits

Drawn amounts

244

442517

676753

51

378

179

398

682

2011 2012 2013 2014 Thereafter

21

Further diversification and improvement of financial position in Q2

22

Agenda



04 Outlook

05 Appendix

01 Overview

23

03 Global economies losing pace after strong recovery

• All major indicators across the globe declined during the quarter, downside risks have increased again

• US economy on hold while waiting for the outcome of the governmental budgetary cuts, factory production is slowing, growth rates and expectations being reduced

• Northern Europe slowly recovering further whereas Southern Europe still struggling given the lack of export oriented industries and ongoing weakness in construction

• China adjusting growth to higher single digit percentage points p.a. in order to avoid overheating of the economy

• Although government has limited loans in order to avoid inflation, Brazilian economy is still growing robustly

PMIs

Expansion

Contraction

30

35

40

45

50

55

60

65

70

Jul05

Mar06

Nov06

Jul07

Mar08

Nov08

Jul09

Mar10

Nov10

Jul11

North America Europe Brazil China

24

03 Construction

• US construction spending in non residential expected to remain subdued for the remainder of the year

• Infrastructure spending dependent on budgetary cuts, but anyhow so far steel exposure limited

• Residential construction seems to have bottomed but steel intensity is limited

• Early indicators like USA Architectural Billings Index point to a recovery in 2012 at the earliest

US

• Construction output is recovering in Germany and

the Baltic Sea area, stabilizing in France and

suffering further in Southern Europe

Europe

Eurozone construction

index

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jan02

Jul02

Jan03

Jul03

Jan04

Jul04

Jan05

Jul05

Jan06

Jul06

Jan07

Jul07

Jan08

Jul08

Jan09

Jul09

Jan10

Jul10

Jan11

Cons

truc

tion

spen

ding

s US

US Residential construction per month in mUSD US Non-Residential construction per month in mUSD

80

90

100

110

Eurozone construction spending Index

Construction in Europe and the US

25

03

• Automotive sales in the US are still robust with H1 being 12.8% above last year, but loosing momentum with June only being 3.0% above last year

• US automotive production that had been affected by parts shortages from Japan and seasonal model year change will return to more normal levels

• Machinery production in the US, esp. heavy, agricultural and mining equipment has been robust but the growth rate is slowing; industrial plant manufacturing has been improving

US and EU domestic car sales (in thousand units/quarter)

US

Europe • European car sales are expected to stay on high level

although wreckage premiums caused base effect

• Machinery in Europe still robust but losing momentum due to spill-over effects for exports fading out

2,000

2,500

3,000

3,500

4,000

4,500

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

EU sales US sales

Source: Bloomberg

Automotive, machinery and mechanical engineering

26

Agenda



04 Outlook

05 Appendix

01 Overview

27

04 Preparing for slower growth with profitability action plan

2008 2009 2010* 2011e* 2012e*

Volumes -27 %

Capacities with Wave 1+2 -15 %

Reaction to current market expectations

• We prepare for slower growth scenario with profitability action plan to reach 6% target EBITDA-margin asap

• Measures focus on admin and overhead and structural changes in the country organizations

• Divestment of mid triple digit €m amount

• Net EBITDA contribution of mid double digit €m, majority already in 2012

• One-off costs of low double digit €m fully compensated by disposal proceeds

Organic volume development

28

04 Outlook

• Q3 2011• Volumes to be seasonally lighter on organic basis

• EBITDA expected seasonally below Q2 level

• Prices to stabilize during Q3 with upside potential after summer depending on supply balance and further macro economic trends

• Full year 2011 guidance• >25% volume and sales growth resulting from acquisitions expected with precondition that world

economies not entering into a recession

• Midterm EBITDA margin target of 6% not realistic to be achieved already in 2011

29

Agenda



04 Outlook

05 Appendix

01 Overview

30

05 Appendix

Contact details Investor Relations

Dr. Thilo Theilen, Head of Investor Relations & Corporate Communications

Phone: +49 203 307 2050

Fax: +49 203 307 5025

E-mail: [email protected]

Internet: www.kloeckner.de

Financial calendar 2011/2012

November 9, 2011 Q3 interim report 2011

March 7, 2012 Annual Financial Statements 2011

May 9, 2012 Q1 interim report 2012

May 25, 2012 Annual General Meeting 2012

August 8, 2012 Q2 interim report 2012

November 7, 2012 Q3 interim report 2012

31

05 Quarterly results and FY results 2006-2011

(€m)Q2

2011Q1

2011Q4

2010Q3

2010Q2

2010Q1

2010Q4

2009Q3

2009Q2

2009Q1

2009FY

2010FY

2009FY

2008FY

2007FY

2006

Volumes (Tto) 1,763 1,498 1,318 1,368 1,448 1,180 966 1,033 1,053 1,068 5,314 4,119 5,974 6,478 6,127

Sales 1,885 1,587 1,332 1,401 1,416 1,049 873 934 959 1,095 5,198 3,860 6,750 6,274 5,532

Gross profit 337 353 275 294 331 236 198 208 161 78 1,136 645 1,366 1,221 1,208

% margin 17.9 22.3 20.6 21.0 23.4 22.5 22.6 22.3 16.8 7.1 21.9 16.7 20.2 19.5 21.8

EBITDA 62 104 48 61 100 29 83 11 -31 -132 238 -68 601 371 395

% margin 3.3 6.6 3.6 4.3 7.1 2.8 9.5 1.2 -3.2 -12.0 4.6 -1.8 8.9 5.9 7.1

EBIT 36 86 24 39 78 11 26 -7 -48 -149 152 -178 533 307 337

Financial result -21 -19 -19 -16 -17 -15 -16 -14 -15 -16 -67 -62 -70 -97 -64

Income before taxes 15 66 5 22 61 -4 9 -21 -63 -165 84 -240 463 210 273

Income taxes -9 -22 12 -7 -14 6 3 -2 16 38 -4 54 -79 -54 -39

Net income 5 44 17 15 47 2 12 -23 -47 -127 80 -186 384 156 235

Minority interests 0 1 1 1 1 1 3 0 1 -2 3 3 -14 23 28

Net income KlöCo 5 43 16 14 46 1 9 -23 -48 -126 77 -188 398 133 206

EPS basic (€) 0.07 0.65 0.25 0.21 0.69 0.02 0.56 -0.42 -1.04 -2.70 1.17 -3.61 8.56 2.87 4.44

EPS diluted (€) 0.07 0.60 0.25 0.21 0.69 0.02 0.56 -0.42 -0.85 -2.43 1.17 -3.61 8.11 2.87 4.44

* Pro-forma consolidated figures for FY 2005, without release of negative goodwill of €139 million and without transaction costs of €39 million, without restructuring expenses of €17 million (incurred Q4) and without activity disposal of €1.9 million (incurred Q4).

32

05

¹ Date of announcement 2 Sales in the year prior to acquisitions

Acquisitions1) Acquired sales1),2)

€141m

€567m

€108m

2

4

12

2

2005 2006 2007 2008 2009 2010

4

€231m

Acqu

isiti

on s

trate

gy s

uspe

nded

€712m

Country Acquired 1) Company Sales (FY)2)

GER Mar 2010 Becker Stahl-Service €600m

CH Jan 2010 Bläsi €32m

2010 4 acquisitions €712m

US Mar 2008 Temtco €226m

UK Jan 2008 Multitubes €5m


CH Sep 2007 Lehner & Tonossi €9m

UK Sep 2007 Interpipe €14m

US Sep 2007 ScanSteel €7m

BG Aug 2007 Metalsnab €36m

UK Jun 2007 Westok €26m

US May 2007 Premier Steel €23m

GER Apr 2007 Zweygart €11m

GER Apr 2007 Max Carl €15m

GER Apr 2007 Edelstahlservice €17m

US Apr 2007 Primary Steel €360m

NL Apr 2007 Teuling €14m

F Jan 2007 Tournier €35m



USA Dec 2010 Lake Steel €50m

USA Sep 2010 Angeles Welding €30m

2011

2

€1.15bnBrazil May 2011 Frefer €150m

USA April 2011 Macsteel €1bn

2011 2 acquisitions so far €1,150m

Strong Growth: 24 acquisitions, 2 in 2011

33

05

Sales by industry

BSS shifts exposure of customer industries

Sales by marketsSales by product

• Exposure to construction industry declined by 3.8% as intended

• Automotive rose by 4.2% due to BSS

• Diversification in customer industries will go on

34

05 Balance sheet as of June 30, 2011

(€m) June 30, 2011

Dec. 31, 2010

Non-current assets 1,268 856

Inventories 1,393 899

Trade receivables 1,142 703

Cash & Cash equivalents 1,035 935

Other assets 98 98

Total assets 4,936 3,491

Equity 1,849 1,290

Total non-current liabilities 1,943 1,361

thereof financial liabilities 1,519 1,021

Total current liabilities 1,144 840

thereof trade payables 102 585

Total equity and liabilities 4,936 3,491

Net working capital 1,713 1,017

Net financial debt 600 137

Comments

Shareholders’ equity:• Stable at 37% despite NWC

increase, benefitting from capital increase

Financial debt:• Gearing at 36%

• Net debt position due to acquisitions increased business

NWC:• Swing mainly driven by acquisitions

and also due to increased business

35

05 Statement of cash flow Q2

Comments

• NWC changes due to increased business and acquisitions

• €444m were cash outflows for MSCUSA and Frefer

(€m) Q2 2011 Q2 2010

Operating CF 64 99

Changes in net working capital -188 -170

Others -13 14

Cash flow from operating activities -137 -57

Inflow from disposals of fixed assets/others 0 1

Outflow for acquisitions -444 0

Outflow for investments in fixed assets/others -10 -6

Cash flow from investing activities -454 -5

Capital increase 517 0

Changes in financial liabilities 430 196

Dividends -20 0

Net interest payments -21 -16

Repayments of financial liabilities in connection with business combinations -196 0

Cash flow from financing activities 710 180

Total cash flow 118 118

36

05 Segment performance Q2 2011

(€m) Europe Americas*HQ/

Consol. Total

Volume (Ttons)

Q2 2011 1,192 571 - 1,763

Q2 2010 1,162 286 - 1,448

Δ

% 2.6 99.6 21.8

Sales

Q2 2011 1,365 520 - 1,885

Q2 2010 1,180 236 - 1,416

Δ

% 15.7 120.4 33.1

EBITDA

Q2 2011 50 23 -11 62

% margin 3.6 4.4 3.3

Q2 2010 93 13 -6 100

% margin 7.9 5.4 7.1

Δ

% EBITDA -46.6 81.7 -38.3

Comments

• Excl. MSCUSA, Frefer and Lake Steel volume increase in Americas was 14.4% and sales increase was 23.5% yoy

• Without acquisitions total volume increased by 4.9% and total sales by 17.0% yoy

* in 2010 North America

37

05

Geographical breakdown of identified institutional investors

Current shareholder structure

Comments• Identified institutional investors account for 50%

• German investors incl. retail dominate

• Top 10 shareholdings represent around 26%

• Retail shareholders represent 20%

38

05

the earsattentive to customer needs

the eyeslooking forward to new developments

the nosesniffing out opportunities to improve performance

the ballsymbolic of our role to fetch and carry for our customers

the legsalways moving fast to keep up with the demands of the customers

Our symbol