Klöckner & Co AG reported strong results for the first half of 2007, supported by robust demand in Europe. The company completed eight acquisitions during the period and its business optimization program "STAR" was on track. Klöckner also increased its free float to 100% and optimized its financing through a new revolving credit facility and a €325 million convertible bond issuance. Management outlined targets for continued growth both organically and through acquisitions in its core European and North American markets.

1. August 15, 2007
Dr. Thomas Ludwig Gisbert Rühl
CEO CFO
Klöckner & Co AG
- Q2/H1 2007 Results -
Analysts’ and Investors’
Conference Call

2. 2
Agenda
1. Highlights H1 2007, market and strategy
Dr. Thomas Ludwig
2. Financials Q2/H1 2007 and outlook
Gisbert Rühl, CFO
Appendix

3. 3
Highlights H1 2007 and until today
 Good results supported by strong market environment in Europe
 Business optimisation program “STAR” fully on track
 Eight successful acquisitions; pipeline of further targets
 Increased free float from 55% to 100%
 Further optimization of financing:
Successful placement of €600 million Multi-Currency Revolving Credit Facility
Successful issuance of €325 million Convertible Bond
Fully redemption of high yield bond
 Sale of 49% stake in Klöckner Information Services (IT)
Ongoing profitable growth

4. 4
Financial highlights Q2/H1 2007
166
195
3,199
3,292
H1
2007
89
104
1,418
1,605
Q2
2006
+7.7154-2.287EBIT
+6.4183-1.1103EBITDA
+16.72,741+ 16.41,650Sales
+2.73,206+3.61,663
Volume
(Ttons)
Ä%
H1
2006
Ä%
Q2
2007
(€m)

5. 5
Industry trends supporting Klöckner’s strategy
Positive impact on
distribution
industry
Globalization and
consolidation
Stable global
demand growth
 Far quicker destocking
 High capacity utilisation of steel mills
 Large costs savings
 Higher and more flexible capacity utilization
 Much better supply discipline and higher pricing power creating an
improved balance between supply and demand
 On-going consolidation favoring large scale distributors
 Higher prices with much shorter downturns support more stable
earnings and cash flows for distributors

6. 6
Profitable growth
Grow more than
the market
Continuous
business
optimization
1 Acquisitions driving
market consolidation
Organic growth and
expansion into new
markets
2
3 STAR Program:
- Purchasing
- Distribution network
Profitable growth
through value-added
distribution and services
within multi metals to
companies in Europe
and North America
Profitable growth
through value-added
distribution and services
within multi metals to
companies in Europe
and North America

7. 7
€108 million4 acquisitions2006
€501 million8 acquisitionsH1 2007
€35 millionTournierJan 2007
€14 millionTeulingApril 2007
€360 millionPrimary SteelApril 2007
€17 millionEdelstahlserviceApril 2007
€15 millionMax CarlApril 2007
€11 millionZweygartApril 2007
€23 millionPremier SteelMay 2007
€26 millionWestokJune 2007
€141 million
Sales
2005
Acquired CompanyCountry
2 acquisitions
Acquisitions driving market consolidation1
Acquisitions Next steps
Significant synergies
 Streamlining operations, processes and sales
force
 Integration of STAR
Economies of scale
 Stronger purchasing power
Further acquisitions in core markets at attractive
valuations:
 Leverage existing structure with 10 to 12 small-
and mid-size bolt-on acquisitions in 2007
 Large scale acquisitions when appropriate
 Include attractive industries, e.g. oil and gas
Benefits

8. 8
 Growth above GDP in core markets partly as
a result of the outstanding development of
the construction and machinery/mechanical
engineering industries and steel prices
 Eastern European facilities established in
Poland, Czech Republic, Romania and Baltic
States
Organic growth and expansion into new markets2
Status quo Next steps
Expansion of strong market positions in
core markets:
 Selective extension of product range
 Increase value-added services through
investments in new processing capacity
 Opening of new branches in Eastern
Europe
 Evaluating of market entry in other
countries like Slovakia, Turkey and Russia
Leveraging existing distribution network
Sustainable profitable growth
Strategy
Benefits

9. 9
Next steps
STAR: Status quo H1 2007 and next steps3
Status quo
 Establish European sourcing (STAR Phase II)
 Increase sourcing from world-class suppliers with
structural cost advantages
 Implement unified article codes
 Additional frame contracts with main suppliers
 Extended global sourcing for third party countries
 Implementation of new organization in Germany
(January 1, 2007) almost completed
 Implementation of a software supporting stock
management
Purchasing
 Improved performance as a result of restructured
distribution network (warehouses):
- Q1 2007: Concentration of warehouse structure
in the Iowa region in US
- Q1 2007: Restructuring of service center
business in Switzerland
 Start of roll-out of the optimization tool “Prodacapo”
(activity based costing) in Spain, UK and Eastern
European Countries
 Continuous improvement of distribution network
throughout the Group with support of the
optimization-tool “Prodacapo”
- Ongoing roll-out throughout European countries
- Restructuring of warehouse structure in Spain
 Finalize implementation of SAP throughout the
European organization (France, Switzerland) and
interface SAP with “Prodacapo”
Distribution

10. 10
Phase II (2008 onwards)
STAR: Phase I finalized in 2008, further potential in phase II3
Phase I (2005 - 2008)
Overall targets:
 Central purchasing on country level,
especially in Germany
 Improvement of distribution network
 Improvement of inventory management
2006: ~ €20 million
2007: ~ €40 million
2008: ~ €20 million
~ €80 million
Upside potential
Overall targets:
 European Sourcing
 Ongoing improvement of
distribution network


11. 11
Target Setting 2007 / Achievements in H1 2007
Acquisitions: 10 – 12
Organic growth:
Min. 2.5% = €140 million
STAR program:
Additional €40 million EBITDA
Expansion:
New branches in Eastern Europe:
- Romania
- Poland
- Czech Republic
- Baltic States
Targets 2007 Achievements H1 2007
1
2
3
4
Acquisitions: 8 in 6 months
Organic growth:
12% before acquisitions
STAR program:
On track
Expansion:
New branches in Eastern Europe:
- Opening of new warehouse in the short
term
1
2
3
4

12. 12
Agenda
1. Highlights H1 2007, market and strategy
Dr. Thomas Ludwig
2. Financials Q2/H1 2007 and outlook
Gisbert Rühl, CFO
Appendix

13. 13
Summary income statement Q2/H1 2007
-126103-7535Income before taxes
--35-33--22-12Income taxes
-1510-94Minority interests
1.28
59
166
-63
195
6.1
635
19.8
3.199
H1
2007
0.41
19
87
-52
103
6.2
328
19.8
1,650
Q2
2007
-1.63-0.97EPS €
-76-45Net income
+5.6
-9.6
601
21.9
+3.7
-10.9
316
22.3
Gross profit
% margin
89
-14
104
7.3
1,418
Q2
2006
+7.7
-
154
-28
-2.2
-
EBIT
Financial result
+6.4
-8.9
183
6.7
-1.1
-15.0
EBITDA
% margin
+16.72,741+16.4Sales
Ä%
H1
2006
Ä%(€m)

14. 14
Segment performance H1 2007
Comments
 Sales for H1 2007 in Europe
including about
- €9 million from Aesga (E)
- €4 million from Gauss (CH)
- €21 million from Tournier (F)
- €5 million from Teuling (NL)
- €3 million from Edelstahl-
service (D)
- €1.5 million together from Max
Carl and Zweygart (D)
- €8 million from Westok (UK)
 Sales for H1 2007 in North
America including about
- €26 million from Action Steel
- €54 million from Primary
- €2.5 million from Premier
3,199
-
486
2,713
Sales
H1 2007
+6.4183195+16.72,741Total
--25-16--
HQ /
Consol.
-16.43933+8.5448
North
America
+5.6169178+18.42,292Europe
Ä %
EBITDA
H1 2006
EBITDA
H1 2007
Ä %
Sales
H1 2006
(€m)

15. 15
Balance sheet H1 2007
996
1,531
3,234
-
776
1,243
936
1,277
714
3,234
85
74
1,212
1,095
768
June
30, 2007
933Trade receivables
841Inventories
579Long-term assets
130Cash & Cash equivalents
69Other assets
639- thereof trade payables
-Other liabilities
1,009Total short-term liabilities
744Total long-term liabilities
799Equity
2,552Total assets
416- thereof financial liabilities
December
31, 2006
(€m)
2,552Total equity and liabilities
365Net financial debt
1,135Net working capital
Comments
Financial debt as of June 30, 2007:
• Syndicated loan: €517million
• ABS: €339 million
• Bank borrowings: €190 million
• Increased net financial debt due to
acquisitions and higher NWC
Equity:
• Decrease driven by increase of
stake in Swiss Holding and
dividend distribution
• Further, equity ratio decreased
due to higher assets from 31% to
22%
Net Working Capital:
• Increase driven by sales, higher
price levels and acquisitions

16. 16
Statement of cash flow
Comments
101-Proceeds from capital increase
-3-25Others
-10-140Cash flow from operating activities
3415Inflow from disposals of fixed assets/others
-16-366Outflow from investments in fixed assets
18-351Cash flow from investing activities
-186-303Changes in net working capital
61531Changes in financial liabilities
179188Operating CF
145-56Total cash flow
137435Cash flow from financing activities
-6-45Dividends
-19-51Net interest payments
H1
2006
H1
2007
(€m)
 Strong business
development reflected in
positive cash flow
deriving from operational
activities and increased
NWC requirements
 Investing cash flow in H1
2007 mainly impacted by
cash outflow due to the
various acquisitions and
increased stake in our
Swiss Holding

17. 17
General financial targets and limits
139%< 150%Gearing (Net financial debt/Equity)
2.4x< 3.0xLeverage (Net financial debt/EBITDA LTM)
6.1%> 6%Underlying EBITDA margin
16.7%> 10% p.aUnderlying sales growth
Actual
H1 2007
General
target/limit
Challenging financial targets throughout the cycle

18. 18
New holding facility and convertible
bond increase scope for further acquisitions
325+325-Convertible bond
1,785+6951,090Total facilities
--170170High yield bond
980+500480Total senior bank facilities
380-100480Bilateral credit agreements
600+600-Syndicated loan
480+40440Total
60-60ABS USA
420+40380ABS Europe
New debt
structure
Change in
debt structure
Old debt
structure
(€m)

19. 19
Convertible bonds – terms and conditions
 Size: €325 million
 Shares underlying: approx. 4 million
 Denomination: €50,000
 Maturity date: July 27, 2012 (5 years)
 Coupon: 1.50% p.a.
 Reference price: €59.81
 Conversion price: €80.75 (35% above reference price)
 Conversion ratio: 619.1950 shares per bond
 Conversion right: September 6, 2007 until July 18, 2012
 Early redemption at the option of the issuer: from August 15, 2010 onwards only
possible if share price exceeds approx. €105 (= 130% of the conversion price)
 Listed on the “Freiverkehr” segment of the Frankfurt Stock Exchange (Open Market)

20. 20
Outlook / guidance 2007
 At least 15% top line growth mainly driven by acquisitions
 EBITDA approximately on reported 2006 level
 Dividend continuity: 30% payout ratio after deduction of extraordinary income
 Positive prospects for the steel industry
 Economic growth in relevant markets of about 1.8% to 5% in 2007
 Stable and increasing demand especially in the construction and machinery
industries
 Price development stable or better
Basic assumptions for 2007
Outlook / guidance
Again strong results in 2007

21. 21
Q3 Interim ReportNovember 14:
Analysts’ and Investors’ MeetingSeptember 19:
Financial calendar 2007 and contact details
Financial calendar 2007
www.kloeckner.deInternet:
claudia.nickolaus@kloeckner.deE-mail:
+49 203 307 5025Fax:
+49 203 307 2050Phone:
Claudia Nickolaus, Head of IR
Contact details Investor Relations

22. 22
Agenda
1. Highlights H1 2007, market and strategy
Dr. Thomas Ludwig
2. Financials Q2/H1 2007 and outlook
Gisbert Rühl, CFO
Appendix

23. 23
Appendix
Table of contents
Quarterly results 2007/2006 and FY results 2006/2005
Primary Steel
Acquisitions in Germany

24. 24
812735075105436835Income before taxes
-29-39-13-22-2016-22-12Income taxes
1628698564Minority interests
0.41
19
-52
87
6.2
103
19.8
328
1,650
Q2
2007
-4.44-0.971.641.160.86Earnings per share in €
362063145765440Net income
-54-64-14-14-24-12-10Financial result
13533764891285578EBIT
4.07.16.07.310.34.95.9% margin
197395791041437092EBITDA
19.921.821.522.322.521.019.8% margin
9871,208285316313294307Gross profit
4,9645,5321,3231,4181,3941,3981,550Sales
FY
2005*
FY
2006
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
(€m)
Quarterly results and FY results 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).

25. 25
Primary Steel is a perfect fit
Key Facts
 Sales 2006
Namasco* : €570 million
Primary: €360 million
 Primary’s leading market
position in plate distribution
combined with Namasco’s
strong position in long products
 Additional attractive growth
perspective from Primary’s main
segments heavy equipment, oil
& gas, power generation,
transportation and railcar and
shipbuilding
 Significant improved
geographical coverage providing
a much stronger platform for
further bolt-on acquisitions
Geographical Scope
* Sales of Klöckner & Co US
Primary outlet
Primary Sales office
Namasco Gen. line
Namasco Processing
Oakland
Houston
Missouri
Chicago
Tampa
Charlotte
Arizona
Arkansas
Iowa
Alabama Georgia
South
Carolina
North Carolina
Indiana
Maryland
Maine
Connecticut
Florida
Louisiana
Illinois
Texas
California
Dubuque
Louisville
Indianapolis
Atlanta
B´ham
Charleston
Dallas
Austin
New Orleans
Jacksonville
Orlando
Pompano
Phoenix
Santa Fee Springs
Tulare
West Memphis
Savannah
Portland
Middletown
New Castle

26. 26
Company Sales
Attractive H1 acquisitions in Germany
 Specialized distributor of stainless tubular products and
accessories with value-added services supplies from
Hungarian site
 Expands KSM’s position in specialty stainless products which
is key thrust in its diversification strategy
 Synergies from integration with recently acquired Dutch
Teuling
 Local general line distributor
 Sizeable synergies in purchasing
 Improvement local market position
 Local general line distributor servicing the Stuttgart area
 Integration with existing KSM location in Stuttgart will improve
market position
 Synergies in purchasing and from back-office integration
Comments
Max Carl €15.0 million
Edelstahl- €16.7 million
service
Zweygart €11.3 million

27. 27
Our symbol
the ears
attentive to customer needs
the eyes
looking forward to new developments
the nose
sniffling 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

28. 28
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:
 Downturns in the business cycle of the industries in which we compete;
 Increases in the prices of our raw materials, especially if we are unable to pass these costs
along to customers;
 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.