EQS-News: Klöckner & Co makes very good start to 2023 despite ongoing challenging environment

• Operating income (EBITDA) of €69 million before material special effects considerably higher in first quarter of 2023 than in preceding quarter (Q4 2022: €– 22 million)
• Significant positive cash flow from operating activities of €64 million (Q1 2022: €– 261 million)
• Progress in strategy implementation with introduction of Nexigen^® PCF Algorithm and first all-electric truck brought into service
• EBITDA before material special effects of €60 million to €110 million in second quarter expected

Duisburg, Germany, May 3, 2023 – Klöckner  Co’s sales in the first quarter of 2023 were €2.1 billion as a result of the lower overall price level (Q1 2022: €2.4 billion). Operating income (EBITDA) before material special effects, at €69 million, was considerably higher than in the preceding quarter (Q4 2022: €– 22 million). In the prior-year comparative period, operating income notably benefited from significant positive price effects (Q1 2022: €201 million). Including negative material special effects of €21 million, mainly relating to the implementation of a hub structure in France to support further growth, EBITDA came to €48 million (Q1 2022: €254 million). Due to the material special effects, net income was €– 8 million (Q1 2022: €172 million). Earnings per share consequently came to €­– 0.08 (Q1 2022: €1.68).

In the first quarter of 2023, proactive net working capital management resulted in a significant positive cash flow from operating activities of €64 million (Q1 2022: €– 261 million). Net working capital decreased relative to March 31, 2022, from €2.3 billion to €1.7 billion. After €8 million in payments for capital expenditure, free cash flow amounted to €56 million in the first three months of the year, compared to a negative free cash flow of €222 million in the first quarter of 2022.

Guido Kerkhoff, CEO of Klöckner Co SE: “We made a very good start to the new year, despite the ongoing challenging environment, and have made continuous progress in the implementation of our Group strategy over the first few months. With the introduction of the Nexigen^® PCF Algorithm, we are now able to calculate the product carbon footprint for nearly all of our products. In this way, we are tangibly helping our customers to achieve their decarbonization goals.”

Progress in implementation of the “Klöckner Co 2025: Leveraging Strengths” Group strategy

With the introduction of its proprietary “Nexigen^® PCF Algorithm”, based on a calculation method that is certified by TÜV SÜD and complies with internationally recognized standards, Klöckner Co is now able to calculate the Product Carbon Footprint (PCF) for almost all of its approximately 200,000 products. This enables customers to make informed purchase decisions based on scientifically established emissions data that is comparable across producers. The new service is part of Klöckner  Co’s response to increasing demand for CO₂-reduced solutions and transparent information on the carbon footprint of its products. In the first quarter of 2023, the first PCF declarations were successfully provided to Klöckner  Co customers in conjunction with product deliveries, among others for the two major partners Siemens Smart Infrastructure and ZF. In addition to the growing range of CO₂-reduced solutions for customers, Klöckner  Co also continued over the past three months to work on reducing its own emissions. For example, the Company added the first all-electric truck to its logistics fleet. The vehicle was supplied by Daimler Trucks.

A further focus of the Group strategy consists of digitalizing and automating Klöckner  Co’s value chains. Sales handled by Kloeckner Assistant, the Group’s proprietary AI solution, remained at a strong level at over €280 million in the first quarter of 2023.

Outlook

Klöckner Co achieved a strong operating income and a significantly positive cash flow from operating activities in the first quarter, despite the challenging environment. Although the economic environment is expected to remain challenging, macroeconomic conditions have further improved compared to the second half of 2022. Against this back-ground, and significantly supported by the proactive and disciplined net working capital management, the Company forecasts an EBITDA before material special effects of €60 million to €110 million and a positive cash flow from operating activities for the second quarter.

About Klöckner  Co:

Klöckner Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service companies worldwide. Based on its distribution and service network of around 150 sites in 13 countries, Klöckner Co supplies more than 90,000 customers. Currently, the Group has around 7,200 employees. Klöckner  Co had sales of some €9.4 billion in fiscal year 2022. With the expansion of its portfolio of CO₂-reduced materials, services and logistics options under the new Nexigen^® umbrella brand, the company is underscoring its role as a pioneer of a sustainable steel industry. At the same time, Klöckner Co leads the way in the steel industry’s digital transformation and has set itself the target of digitalizing and largely automating its supply and service chain. In this way, the Company aims to develop into the leading one-stop shop for steel, other materials, equipment and processing services in Europe and the Americas.

The shares of Klöckner  Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with further post-admission obligations (Prime Standard). Klöckner Co shares are listed in the SDAX^® index of Deutsche Börse.

ISIN: DE000KC01000; WKN: KC0100; Common Code: 025808576.

Contact Klöckner  Co SE:

Press
Christian Pokropp – Press Spokesperson
Head of Corporate Communications Head of Group HR
Phone: +49 203 307-2050
Email: [email protected]

Investors
Felix Schmitz
Head of Investor Relations | Head of Strategic Sustainability
Phone: +49 203 307-2295
Email: [email protected]