Klöckner & Co - All Stars Conference 2009

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Merrill Lynch All Stars Conference, April 1, 2009

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Klöckner & Co - All Stars Conference 2009

  1. 1. KlKlööckner & Co SEckner & Co SE A Leading Multi Metal DistributorA Leading Multi Metal Distributor Merrill LynchMerrill Lynch All Stars ConferenceAll Stars Conference April 1, 2009April 1, 2009 Gisbert RGisbert Rüühlhl CFOCFO
  2. 2. 2 Agenda 2. Full year results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  3. 3. 3 Klöckner & Co at a glance Klöckner & Co Leading producer-independent steel and metal distributor in the European and North American markets combined Network with 260 distribution locations in Europe and North America More than 10,000 employees GB 24% 21% 14% 8% 6% 8% 19% Germany France Spain Nether- lands Switzerland Sales split by markets As of December 2008 Steel-flat Products Steel-long Products Special and Quality Steel Aluminum Other Products 31% 31% 10% 8% 6% 14% Sales split by product As of December 2008 Other Machinery/ Manufacturing Auto- motive 42% 24% 5% 29% Sales split by industry As of December 2008 Construction USA Tubes
  4. 4. 4 Distributor in the sweet spot Local customersGlobal suppliers Suppliers Sourcing Products and services Logistics/ Distribution Customers Global Sourcing in competitive sizes Strategic partnerships Frame contracts Leverage one supplier against the other No speculative trading One-stop-shop with wide product range of high- quality products Value added processing services Quality assurance Efficient inventory management Local presence Tailor-made logistics including on-time delivery within 24 hours ~185,000 customers No customer with more than 1% of sales Average order size of €2,000 Wide range of industries and markets Service more important than price Purchase volume p.a. of >6 million tons Diversified set of worldwide approx. 70 suppliers Klöckner & Co’s value chain
  5. 5. 5 Volume related increase and windfall profits result in strong EBITDA but high level of capital employed because of value and volume of stock How the business model of Klöckner & Co works in… High profitability in upturn due to windfall profits and volume increase Strong cash flow generation in downturn due to working capital release an upturn with price and volume increases EBITDA Stock turnover cycle of ~80 days EBITDA Δ Windfall profits Δ Volume Windfall losses and write-offs but strong cash flow generation to reduce net debt a downturn with price and volume declines Net working capital Stock turnover cycle of ~80 days Net working capital Cash flow
  6. 6. 6 Cash flow goes up in a downturn market 1 1999 to 2005 unaudited pro-forma figures, Cash flow adjusted for M&A-activities; Sales in € bn1 EBITDA in € million1 Year FCF in € million1 201 65 211 69 112 80 147 126 86 4.5 5.3 4.2 4.0 3.8 4.8 5.0 1999 2000 2001 2002 2003 2004 2005 151 220 150 156 140 349 197 5.5 2006 395 6.3 2007 371 6.7 2008 600 147
  7. 7. 7 Agenda 2. Full year results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  8. 8. 8 Portfolio optimization succeeded, strict and fast adjustments to current conditions adopted Highlights FY 2008 Delivery on growth strategy Acquisition of Temtco (USA) and Multitubes (UK) Concentration on core business Sale of Canadian Namasco and Swiss KVT Transformation into an SE Immediate action program in response to negative economic developments Significant reduction of net debt STAR fully on track
  9. 9. 9 Revenue and EBITDA at all time highs despite hit in Q4 Financial highlights FY 2008 Revenues 7.6% up to €6.7bn Reported EBITDA increased by 62% to €600m Operating EBITDA increased by 27% to €420m, negatively impacted by year-end inventory write-downs of approx. €60m Underlying EBITDA margin at 6.4% with €435m Significant reduction of net debt to €571m, almost halved since Q2 2008 Tonnage decreased by 7.8% to 6.0m tons in 2008, mainly driven by shortfall in Q4 and deconsolidation of Namasco Ltd.
  10. 10. 10 Results Q4/FY 2008 (€m) Q4 2008 Q4 2007 Δ% FY 2008 FY 2007 Δ% Volume (Ttons) 1,151 1,585 -27.3 5,974 6,478 -7.8 Sales 1,394 1,492 -6.5 6,750 6,274 7.6 EBITDA -134 83 -262.1 600 371 62.0 EBIT -152 65 -334.6 533 307 73.7
  11. 11. 11 Underlying EBITDA again improved Underlying EBITDA FY 2008 (€m) Q4 2008 Q4 2007 Δ FY 2008 FY 2007 Δ EBITDA as reported ● One-off items ● Cartel fine France -134 -5 79 83 -6 -217 1 600 -259 79 371 -40 229 -219 Operating EBITDA ● Windfall effects ● Exchange rate effects ● Special expense effects -60 93 -14 63 77 7 3 -6 -137 86 -17 69 420 -40 3 52 331 20 9 12 89 -60 -6 40 Underlying EBITDA 81 81 0 435 372 63 ● Acquisitions (LTM*) 5 -6 11 -48 -24 -24 Underlying EBITDA excluding Acquisitions 86 75 11 387 349 38 * LTM: Last twelve months
  12. 12. 12 Balance sheet as of Dec. 31, 2008 (€m) December 31, 2008 December 31, 2007 Long-term assets 803 735 Inventories 1,001 956 Trade receivables 799 930 Cash & Cash equivalents* 297 154 Other assets 175 191 Total assets 3,075 2,966 Equity 1,074 845 Total long-term liabilities 1,175 1,152 - thereof financial liabilities 813 813 Total short-term liabilities 826 969 - thereof trade payables 392 610 Total equity and liabilities 3,075 2,966 Net working capital 1,407 1,323 Net financial debt 571 746 Comments Shareholders’ equity: Increased from 28% to 35% Financial debt: Leverage reduced from 2.0x to 0.95x EBITDA Gearing reduced from 88% to 53% Net Working Capital: Increase is price-driven * Including restricted cash of €3m
  13. 13. 13 Strong cash flow generation leads to net debt of currently €358m Business model works also under extreme conditions Net working capital Net debt In € millionIn € billion Q3/2008 Q4/2008 -18% 1.7 1.4 currently Q3/2008 Q4/2008 -17%690 571 Currently* 358 -37% *as of March 20, 2009
  14. 14. 14 Agenda 2. Full results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  15. 15. 15 Demand and stock risks are dominating steel market outlook in Europe 137.474.4 63.8 75.2 70 78.6 88.2113.2 89.9 100.965.165.1109.1 62.3 111 112.8 96.6 115.9 98.7 109.1 99.9 75.1 98.6 90.9 72 56.4 0 20 40 60 80 100 120 140 160 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Stocks Sales index Source: Eurometal, Q1 2007 = 100% 137,474,4 63,8 75,2 70 78,6 88,2113,2 89,9 100,965,165,1109,1 96,8 99,9 104,3 106,3 101,7 109,2 107,6 110,6 111,5 110,1 107,9 101,2 95,4 0 20 40 60 80 100 120 140 160 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Stocks Stock index Sales volumes compared to stockholding days Stocks compared to stockholding days
  16. 16. 16 US In the US demand and stock situation is the same 10,664 10,026 9,138 8,642 8,481 8,308 -1.5% -29.3% -32.7% -42.7% -22.8% -7.6% -43.3% -20.3% -52.3% -42.7% -51.7%-52.8% 0 2,000 4,000 6,000 8,000 10,000 12,000 Sept 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Servicecenterinventory(000tons) -60% -50% -40% -30% -20% -10% 0% Y-O-Ychangeinmillproduction& servicecentershipments Inventory Steel production Shipments Stocks compared to stock to shipment ratios Steel mills have cut production drastically Source: MSCI, American Iron and Steel Institute Low demand leads to increasing stock to shipment ratios despite significant production cuts 1,5 2 2,5 3 3,5 4 Jan-98 May-99 Jun-00 Jul-01 Aug-02 Sep-03 Oct-04 Nov-05 Dec-06 Jan-08 Feb-09 Months'supplyonhand 7000 8000 9000 10000 11000 12000 13000 14000 15000 Monthlyinventories('000tons) Inventory Months' supply Source: Metal Service Center Institute Source: Metal Service Center Institute, American Iron and Steel Institute
  17. 17. 17 Prices are decreasing further after sharp decline in Q4 2008 Significant global production cuts and destocking have not stabilized prices so far If demand stays weak falling raw material contract prices could again pressure prices in Q2 Government stimulus programs are expected to support steel demand but with limited effect in 2009 Price risks are ongoing due to demand/stock situation EU domestic prices in EUR/to 300 400 500 600 700 800 900 1000 Jan 06 M ar06 M ay 06 Jul06 Sep 06 N ov 06 Jan 07 M ar07 M ay 06 Jul07 Sep 07 N ov 07 Jan 08 M ar08 M ay 08 July 08 Sep 08 N ov 08 Jan 09 M ar09 HRC Medium sections NA domestic prices FOB US Midwest mill in USD/to 400 500 600 700 800 900 1000 1100 1200 Jan 06 M ar06 M ay 06 Jul06 Sep 06 N ov 06 Jan 07 M ar07 M ay 07 Jul07 Sep 07 N ov 07 Jan 08 M ar08 M ay 08 Jul08 Sep 08 N ov 08 Jan 09 M ar09 HRC WF Beams
  18. 18. 18 Agenda 2. Full results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  19. 19. 19 Executed immediate action programs and STAR Immediate action programs (started in Oct. 2008, upgraded in March 2009) Reduction of around 1500 jobs or 15% of total workforce Key priority is liquidity and NWC management Stock and inventory as key lever for debt reduction Acquisitions are postponed for the time being Non-essential investments postponed Full impact (€ 130 million) can only be seen from 2010 onwards STAR Phase I + II Focus: European sourcing Ongoing improvement of distribution network Main areas of savings: sales, supply chain, purchasing Further upside potential 2006 ~ €20 million 2007 ~ €40 million 2008 ~ €30 million 2009 ~ €30 million 2010 ~ €20 million ~ €140 million Net savings of ~ €100m for 2009 targeted Program I ~ €25 million Program II ~ €40 million ~ €65 million
  20. 20. 20 STAR measures SalesSourcing Warehousing / Distribution Centralization of sourcing function Supplier concentration Third country sourcing Warehouse network optimization (incl. site closure) Concentration of stock in single locations Optimization of internal and external logistics Customer segmentation by size and trade Profitability oriented pricing and service offering Reigniting dormant accounts Product Portfolio / Service Offering Product portfolio optimization (profitability / capital requirements) Increasing share of value added services Sharing of products within Group Eliminating slow/no movers Processes / IT Systems (Enabler) Standardizing processes Introduction of standardized SAP suit and data model (article codes, inventory management, etc.) Shared services Activity based costing (ProDacapo)
  21. 21. 21 Three updated scenarios for 2009 On the following three slides we provide a framework of how our business can be impacted by volume and price declines in general Three different scenarios are shown: A: -12% in volumes, 3%-points gross margin contraction B: -15% in volumes, 3%-points gross margin contraction C: -18% in volumes, 3%-points gross margin contraction The scenarios do not necessarily reflect management's expectation about future development Since the visibility for 2009 is limited we cannot provide guidance at this point in time The scenarios cannot be taken as a guidance
  22. 22. 22 EBITDA Leverage Scenario A (-12% volume and 3%p gross margin contraction) Net Debt Credit facilities €1.8bn Convert. €325m Bilaterals €380m ABS €505m Syn-Loan €600m Operational EBITDA 2008 Net debt YE 2008 420 -40 380 -195 -155 +95 100-25 570 -40 1.4 <+100 420 380 -195 -155 570 -240 <390 <3.9 EBITDA scenario A Impact acquisitions LTM / Divestments Variable cost reductions, action program and STAR 12% volume reduction 3% margin contraction Operational EBITDA starting point w/o windfalls Windfalls 2008 Net debt scenario A Cash out cartel penalty Additional cash flow w/o change NWC 17% NWC reduction Leverage scenario A Leverage YE 2008
  23. 23. 23 Scenario B (-15% volume and 3%p gross margin contraction) EBITDA Leverage Net Debt Credit facilities €1.8bn 21% Convert. €325m Bilaterals €380m ABS €505m Syn-Loan €600m Operational EBITDA 2008 Net debt YE 2008 Leverage YE 2008 -40 +105 70-25 -10 1.4 <+100 420 380 -195 570 <380 <5.4 EBITDA scenario B Impact acquisitions LTM / Divestments 15% volume reduction Operational EBITDA starting point w/o windfalls Windfalls 2008 Net debt scenario B Cash out cartel penalty Additional cash flow w/o change NWC 20% NWC reduction Leverage scenario B -280 -195 3% margin contraction Variable cost reductions, action program and STAR
  24. 24. 24 Scenario C (-18% volume and 3%p gross margin contraction) EBITDA Leverage Net Debt Credit facilities €1.8bn Operational EBITDA 2008 Net debt YE 2008 Leverage YE 2008 +110 35 -25 +20 1.4 <+100 -40 420 380 -195 -235 <365 <10 EBITDA scenario C Impact acquisitions LTM / Divestments 18% volume reduction 3% margin contraction Operational EBITDA starting point w/o windfalls Windfalls 2008 Net debt scenario C Cash out cartel penalty Additional cash flow w/o change NWC 20% NWC reduction Leverage scenario C -325570 Variable cost reductions, action program and STAR 21% Convert. €325m Bilaterals €380m ABS €505m Syn-Loan €600m
  25. 25. 25 Current Capitalization Facility Committed Current drawn amount* Currently drawn % Margin Maturity Covenants Bilateral Facilities €380m €65m 17% EU: 50-100 bp US: 175-225 bp N/A N/A ABS €505m €157m 31% EU: 75 bp US: 55 bp EU: 2010 US: June 2012 5x EBITDA Interest coverage ratio: 2* net interest expense Syndicated Loan €600m €231m 39% 60–130 bp, currently 75 bp May 2011 3x EBITDA Interest coverage ratio: 4 * net interest expense Total Senior Debt €1,485m €453m 31% Convertible €325m €328m 100% Coupon 1.5% July 2012 Total Debts €1,810m €781m 43% IFRS adj. €45m Cash €378m Total net debt €358m *as of March 20, 2009 Net indebtedness currently reduced to €358m
  26. 26. 26 Partial restructuring of current facilities to extend financial flexibility Planned changes in capital structure Increased volatility and much more challenging debt markets require changes of current capital structure Reduction of reliance on bank debt Non-performance covenants structures Clear differentiation between financing of NWC and acquisitions Further diversification of financing sources
  27. 27. 27 Changing debt markets require adjustment of capital structure Target financial structure Bank Debt Securitized Debt Capital Market Debt NWC Acquisitions Bilateral Facilities ABS Convertible Syndicated Loan 600 380 505 325 54% 28% 18% Bank Debt Securitized Debt Capital Market Debt NWC Acquisitions Current financial structure Sources Usage Facilities No dependence on performance covenants PerformanceCovenants PerformanceCovenants
  28. 28. 28 Agenda 2. Full year results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  29. 29. 29 Outlook 2009 Ongoing tough market environment will lead to negative Q1 results: Prices still haven't reached bottom line Destocking delayed because of low apparent demand Prepared for higher volume declines than expected by our clients sectors Early and strict cost cutting measures already implemented Strong liquidity position to bridge the recessionary gap Creating financial headroom to take growth opportunities emerged during the crises Business model works: strong cash flow generation in difficult times Well prepared for a challenging year ahead!
  30. 30. 30 Agenda 2. Full year results 2008 Appendix 3. Market update 4. Strategy update 5. Outlook 1. Overview
  31. 31. 31 Appendix Table of contents Financial calendar 2009 and contact details Summary income statement Q4/FY 2008 Quarterly results and FY results 2008/2007/2006/2005 Current shareholder structure Acquisitions 2007/2008 Largest independent multi metal distributor Steel cycle and EBITDA/cash flow relationship Segment performance FY 2008 Statement of cash flow
  32. 32. 32 May 14: Q1 Interim Report May 26: Annual General Meeting August 13: Q2/H1 Interim Report November 13: Q3 Interim Report Financial calendar 2009 and contact details Financial calendar 2009 Contact details Investor Relations Dr. Thilo Theilen, Head of IR Phone: +49 203 307 2050 Fax: +49 203 307 5025 E-mail: thilo.theilen@kloeckner.de Internet: www.kloeckner.de
  33. 33. 33 Largest independent multi metal distributor Europe (2007) Source: company reports, own estimates ArcelorMittal (Distribution approx. 5%) ThyssenKrupp BE Group Other mill-tied and independent distributors 11.1% 9.8% 6.4% 1.0%71.7% Klöckner & Co Source: Purchasing Magazine (May 2008), own estimates North America (2007) Steel Technologies Namasco (Klöckner & Co) Ryerson Reliance Steel Samuel, Son & Co ThyssenKrupp Materials NA Worthington Steel Carpenter Technology McJunkin O'Neal Steel Mac-Steel A.M. Castle 4.2% 2.8% 2.2% 2.2% 1.0% 1.0% 0.9% 1.3% 1.2% 1.1% 1.3% 1.8% 1.7% 1.0% 5.1% Other 71.2% Russel Metals Metals USA Structure: 67% through distribution, service centers Size in value: ~€71–91bn Companies: ~3,000 few mill-tied, most independent PNA Group Structure: 50-60% through distribution, service centers Size in value: ~€100bn Companies: ~1,300 only independent distributors
  34. 34. 34 Summary income statement Q4/FY 2008 (€m) Q4 2008 Q4 2007 Δ% FY 2008 FY 2007 Δ% Volume (Ttons) 1,151 1,585 -27.3 5,974 6,478 -7.8 Sales 1,394 1,492 -6.5 6,750 6,274 7.6 Gross profit % margin 173 12.4 300 20.1 -42.3 -38.3 1,366 20.2 1,221 19.5 11.9 3.6 EBITDA % margin -134 -9.6 83 5.5 -262.1 -274.5 600 8.9 371 5.9 62.0 50.8 EBIT Financial result -152 -18 65 -17 -334.6 6.2 533 -70 307 -97 73.7 -28.2 Income before taxes -171 48 -458.4 463 210 121.0 Income taxes 29 -6 -559.7 -79 -54 47.9 Minority interests -15 4 -466.7 -14 23 -162.5 Net income -126 37 -439.4 398 133 198.5 EPS € -2.72 0.80 -440.6 8.56 2.87 198.4 Diluted EPS € -2.44 0.80 -410.3 8.11 2.87 182.9
  35. 35. 35 Includes acquisition-related sales of €99m for 2008* in Europe and sales of €338m for 2008* in North America EBITDA in Europe includes €259.5m net disposal gains Segment performance FY 2008 (€m) Europe North America HQ/ Consol. Total Volume (Ttons) 2008 4,317 1.657 - 5,974 2007 4,612 1,866 - 6,478 Δ % -6.4 -11.2 -7.8 Sales 2008 5,374 1,376 - 6,750 2007 5,197 1,077 - 6,274 Δ % 3.4 27.8 7.6 EBITDA 2008 377 148 75 600 % margin 7.0 10.8 - 8.9 2007 326 65 -20 371 % margin 6.3 6.0 - 5.9 Δ % EBITDA 15.5 130.4 n.a. 62.0 * Sales of acquired companies for the first twelve months of their consolidation Comments
  36. 36. 36 Statement of cash flow (€m) FY 2008 FY 2007 Operating CF 386 328 Changes in net working capital -87 -105 Others -112 -114 Cash flow from operating activities 187 109 Inflow from disposals of fixed assets/others 388 38 Outflow from investments in fixed assets -316 -416 Cash flow from investing activities 72 -378 Proceeds from capital increase 0 62 Changes in financial liabilities -46 357 Net interest payments -37 -77 Dividends -40 -47 Cash flow from financing activities -123 295 Total cash flow 136 25 Operating CF covered the investments in net working capital Investing CF mainly impacted by increased stake in Swiss Holding and acquisition of Temtco and Multitubes against the divestments of our Canadian subsidiary Namasco Ltd. and our Swiss subsidiary KVT Comments
  37. 37. 37 (€m) Q4 2008 Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3 2007 Q2 2007 Q1 2007 FY 2008 FY 2007 FY 2006 FY 2005* Volume (Ttons) 1,151 1,348 1,755 1,720 1,585 1,601 1,663 1,629 5,974 6,478 6,127 5,868 Sales 1,394 1.773 1,922 1,660 1,492 1,583 1,650 1,550 6,750 6,274 5,532 4,964 Gross profit 173 390 462 340 300 286 328 307 1,366 1,221 1,208 987 % margin 12.4 22.0 24.0 20.5 20.1 18.0 19.8 19.8 20.2 19.5 21.8 19.9 EBITDA -134 413 212 109 83 93 103 92 600 371 395 197 % margin -9.6 23.3 11.0 6.6 5.6 5.9 6.2 5.9 8.9 5.9 7.1 4.0 EBIT -152 395 197 93 65 76 87 78 533 307 337 135 Financial result -18 -18 -17 -17 -17 -17 -52 -10 -70 -97 -64 -54 Income before taxes -171 378 180 76 48 59 35 68 463 210 273 81 Income taxes 29 -30 -55 -24 -6 -14 -12 -22 -79 -54 -39 -29 Minority interests -15 -4 3 2 4 8 4 6 -14 23 28 16 Net income -126 351 122 51 37 37 19 40 398 133 206 36 EPS basic (€) -2.72 7.56 2.63 1.09 0.80 0.79 0.41 0.86 8.56 2.87 4.44 - EPS diluted (in €) -2.44 7.01 2.48 1.06 0.80 0.78 0.41 0.86 8.11 2.87 4.44 - Quarterly results and FY results 2008/2007/2006/2005 * 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).
  38. 38. 38 Steel cycle and EBITDA/cash flow relationship Comments Klöckner & Co buys and sells products at spot prices generally Sales increase as a function of the steel price inflation environment Costs of material are based on historical average cost method for inventory and therefore lag the steel price increase This time lag creates accounting windfall profits (windfall losses in a decreasing steel price environment) inflating (deflating) EBITDA Assuming stable inventory volume cash flow is impacted by higher NWC needs The windfall profits (losses) are mirrored by inventory book value increases (decreases) Theoretical relationship* Windfall profits Windfall losses (€m) Margin Margin 1 2 3 4 4 5 6 6 *Assuming stable inventory volumes Steel price Sales Cost of material EBITDA Cash flow
  39. 39. 39 Geographical breakdown of identified institutional investors Current shareholder structure Comments Identified institutional investors account for 66% UK based investors dominate (Franklin previously accounted for US share) Top 10 individual shareholdings represent around 31% 100% Free float Rest of Europe US United Kingdom Germany France Source: Survey Thomson Financial (as of Feb. 09) 22% 4% 31% 21% 10% 11% SwitzerlandRest of World 1%
  40. 40. 40 Country Acquired Company Sales (FY) Mar 2008 Temtco €226 million Jan 2008 Multitubes €5 million 2008 2 acquisitions €231 million Sep 2007 Lehner & Tonossi €9 million Sep 2007 Interpipe €14 million Sep 2007 ScanSteel €7 million Aug 2007 Metalsnab €36 million Jun 2007 Westok €26 million May 2007 Premier Steel €23 million Apr 2007 Zweygart €11 million Apr 2007 Max Carl €15 million Apr 2007 Edelstahlservice €17 million Apr 2007 Primary Steel €360 million Apr 2007 Teuling €14 million Jan 2007 Tournier €35 million 2007 12 acquisitions €567 million 2006 4 acquisitions €108 million €141 million €567 million Acquisitions 2007/2008 12 4 2 2005 2006 2007 Acquisitions Sales €231 million 2008 €108 million 2
  41. 41. 41 Our symbol the ears attentive to customer needs the eyes looking forward to new developments the nose sniffing out opportunities to improve performance the ball symbolic of our role to fetch and carry for our customers the legs always moving fast to keep up with the demands of the customers
  42. 42. 42 Disclaimer This presentation contains forward-looking statements. These statements use words like "believes, "assumes," "expects" or similar formulations. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our company and those either expressed or implied by these statements. These factors include, among other things: o Downturns in the business cycle of the industries in which we compete; o Increases in the prices of our raw materials, especially if we are unable to pass these costs along to customers; o Fluctuation in international currency exchange rates as well as changes in the general economic climate and other factors identified in this presentation. In view of these uncertainties, we caution you not to place undue reliance on these forward-looking statements. We assume no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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