Klöckner & Co SE - Interim Report Q2 2017

1. Q2
Interim Report
as of June 30, 2017

2. 3
Klöckner & Co Group Figures

3. 3
Balance sheet
December
31, 2016 Variance
June 30,
2016 Variance
Employees
December
31, 2016 Variance
June 30,
2016 Variance
Shipments and income statement Q2 2016 Variance HY1 2016 Variance
Cash flow statement Q2 2016 Variance HY1 2016 Variance

4. 4
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5. 5
“Klöckner & Co 2020”

6. 6

7. 7

8. 8

9. 9

10. 10

11. 11
Macroeconomic situation
Development of GDP (in %)
Europe*) 2.0
Americas
Brazil 0.0
China 6.9
Industry-specific situation

12. 12
Trend in key customer industries

13. 13
Q2 2016 HY1 2016
June 30,
2016
December
31, 2016
June 30,
2016
December
31, 2016

14. 14
Shipments and sales
Q2 2016 HY1 2016
Group sales 1,640 1,517 3,242 2,903
Q2 2016 HY1 2016

15. 15
Q2 2016 HY1 2016
OPEX -275 -290 -565 -578
Q2 2016 HY1 2016
Klöckner & Co-Group 63 72 140 88

16. 16
HY1 2016
EBITDA 140 88
EBIT 95 41
EBT 79 26
Net income 59 19

17. 17
December 31,2016
Total assets 3,084 2,897
Total equity and liabilities 3,084 2,897

18. 18
June 30, 2016 December 31, 2016
Net Working Capital 1,306 1,168 1,120
June 30, 2016 December 31, 2016

19. 19
Consolidated statement of cash flows
Q2 2016 HY1 2016
Free cash flow -17 4 -56 0

20. 20
Expected global economic growth
Expected development of GDP (in %)
Europe*) 1.9
Americas
China 6.7

21. 21
Expected steel sector trend
Expected trend in our core customer sectors

22. 22
Current assessment of opportunities and risks

23. 23

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25. 25
Q2 2016 HY1 2016

26. 26
Q2 2016 HY1 2016
Operating result 40,781 49,331 95,236 41,262
Financial result -8,275 -7,193 -16,508 -15,270
Income before taxes 32,506 42,138 78,728 25,992
Net income 23,570 32,602 59,496 18,897
Earnings per share (€/share)
– basic 0.23 0.59 0.18
– diluted 0.22 0.56 0.18

27. 27
Q2 2016 HY1 2016
Net income 23,570 32,602 59,496 18,897
Total 27,766 -24,906 31,922 -79,901
Total -22,558 10,764 -25,181 -3,812
Other comprehensive income 5,208 -14,142 6,741 -83,713
Total comprehensive income 28,778 18,460 66,237 -64,816

28. 28
December 31, 2016
Non-current assets
Total non-current assets 848,949 897,029
Current assets
Total current assets 2,234,757 1,999,507
Total assets 3,083,706 2,896,536

29. 29
December 31, 2016
Equity
Equity attributable to shareholders of Klöckner & Co SE 1,184,848 1,139,196
Total equity 1,191,942 1,147,953
Non-current liabilities
Total non-current liabilities 898,491 948,578
Current liabilities
Total current liabilities 993,273 800,005
Total liabilities 1,891,764 1,748,583
Total equity and liabilities 3,083,706 2,896,536

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Q2 2016 HY1 2016
Cash flow from operating activities -2,481 21,702 -79,990 26,943
Cash flow from investing activities -14,586 -17,323 24,170 -26,868
Cash flow from financing activities 7,081 -103,515 74,349 -91,968
Changes in cash and cash equivalents -9,986 -99,136 18,529 -91,893
Cash and cash equivalents at the end of the reporting period as per
statement of financial position 150,994 67,371 150,994 67,371

31. 31
Accumulated other comprehensive income
Subscribed
capital of
Klöckner &
Co SE
Capital re-
serves of
Klöckner &
Co SE
Retained
earnings
Currency
trans-
lation
adjustments
Actuarial gains
and
losses (IAS 19)
Fair value
adjust-
ments of
financial
instruments
Equity
attributable
to share-
holders of
Klöckner &
Co SE
Non-
controlling
interests
Balance as of January 1, 2016 249,375 664,182 164,852 175,109 -146,849 -1,848 1,104,821 8,606 1,113,427
Other comprehensive income -83,690 -23 -83,713
Total comprehensive income -65,425 609 -64,816
Balance as of June 30, 2016 249,375 664,182 183,117 171,406 -226,726 -1,958 1,039,396 9,215 1,048,611
Balance as of January 1, 2017 249,375 682,412 201,687 190,842 -182,782 -2,338 1,139,196 8,757 1,147,953
58,866 58,866 630 59,496
Total comprehensive income 65,602 635 66,237
Change of non–controlling
interests -2,298 -2,298
Balance as of June 30, 2017 249,375 682,412 240,603 160,494 -150,865 2,829 1,184,848 7,094 1,191,942

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(1) Basis of presentation
Closing rate Average rate
December 31, 2016 HY1 2016

33. 33
(2)New accounting standards and interpretations
Standard/Interpretation
(3) Earnings per share
HY1 2016
Basic earnings per share (€/share) 0.59 0.18
Diluted earnings per share (€/share) 0.56 0.18

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(4) Inventories
December 31, 2016
Inventories 1,119 1,006
(5) Financial liabilities
December 31, 2016
Non-current financial liabilities
Total non-current financial liabilities 518 527
Current financial liabilities
Total current financial liabilities 112 44
Financial liabilities as per consolidated balance sheet 631 572
December 31, 2016
Financial liabilities as per consolidated balance sheet 631 572
Gross financial liabilities 637 578
Net financial debt (before deduction of transaction cost) 486 444

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(6) Financial instruments
Financial assets as of
June 30, 2017 Measurement in accordance with
IAS 39 IAS 17
Carrying
amount
Amortized
costs
Fair value
recognized
in profit
and loss
Fair value
recognized
in equity
Amortized
costs
Not covered
by the scope
of IFRS 7 Fair value
Non-current financial assets
Current financial assets
Total 1,092,627 1,081,203 635 474 - 10,315 1,082,312

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Financial liabilities as of
June 30, 2017 Measurement in accordance with
IAS 39 IAS 17
Carrying
amount
Amortized
costs
Fair value
recognized
in profit
and loss
Fair value
recognized
in equity
Amortized
costs
Not covered
by the scope
of IFRS 7 Fair value
Non-current financial
liabilities
Current financial liabili-
ties
Total 1,365,085 1,296,025 164 - 23,430 45,466 1,337,266

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Financial assets as of
December 31, 2016 Measurement in accordance with
IAS 39 IAS 17
Carrying
amount
Amortized
costs
Fair value
recognized
in profit
and loss
Fair value
recognized
in equity
Amortized
costs
Not covered
by the scope
of IFRS 7 Fair value
Non-current financial assets
Current financial assets
Total 901,512 884,908 1,638 - - 14,966 886,546

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Financial liabilities as of
December 31, 2016 Measurement in accordance with
IAS 39 IAS 17
Carrying
amount
Amortized
costs
Fair value
recognized
in profit
and loss
Fair value
recognized
in equity
Amortized
costs
Not covered
by the scope
of IFRS 7 Fair value
Non-current financial
liabilities
Current financial liabili-
ties
Total 1,153,208 1,102,755 298 260 24,931 24,964 1,154,219

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(7) Subsequent events
(8) Related party transactions

40. 40
(9) Segment reporting
Europe Americas
Headquarters/
Consolidation Total
HY1 2016 HY1 2016 HY1 2016 HY1 2016
Europe Americas
Headquarters/
Consolidation Total
FY 2016 FY 2016 FY 2016 FY 2016
HY1 2016
Income before taxes 79 26

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