Klöckner & Co is a leading multi-metal distributor with a distribution network of approximately 250 warehouses across Europe and North America. In the first half of 2007, Klöckner reported sales of €3.2 billion, up 16.7% from the prior year, and EBITDA of €195 million. Klöckner pursues a strategy of profitable growth through acquisitions, organic expansion, and operational improvements like the STAR program to optimize purchasing and logistics. The company expects at least 15% sales growth for 2007 and for EBITDA to remain around 2006 levels.

1. Roadshow
August 28,2007
Gisbert Rühl
CFO
Klöckner & Co
A Leading Multi Metal
Distributor

2. 2
Agenda
1. Overview, market and strategy
2. Financials and outlook
Appendix

3. 3
Klöckner & Co at a glance
CustomerDistributor
Klöckner & Co highlights
Products:
Services:
Producer
Construction:
 Structural
Steelwork
 Building and civil
engineering
Machinery/
Mechanical
Engineering
Others:
 Automotive
 Metal products/
goods, installation
 Durable goods
 etc.
 Leading producer-independent steel and
metal distributor in the European and
North American markets combined
 Distribution network with approx. 250
warehouses in Europe and
North America
 About 10,000 employees
 Key financials FY 2006
- Sales: €5,532 million
- EBITDA: €395 million

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
 > 200,000
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 ca. 70
suppliers
 Examples:
Klöckner & Co’s value chain

5. 5
CDN
B D
F
E
CH
A
CZ
PL
LT
RO
NL CN
USA
GB
IRL
Global reach with broad product and customer diversification
About 250 locations (August 2007)
28 LocationsUSA
5 LocationsCDN
48 LocationsE
31 LocationsCH
76 LocationsF
25 LocationsD
11 LocationsEastern Europe
7 LocationsNL
1 LocationIRL
24 LocationsGB
BU

6. 6
Global reach with broad product and customer diversification
Customer diversification (2006)
Other
GB
Construction
Machinery/
Manufacturing
Auto-
motive
40%
20%
5%
35%
23%
21%
15%
10%
9%
6%
1%
10%
Germany/
Austria
France/
BelgiumSpain
Nether-
lands
Eastern
Europe
USA
(incl. Primary
17%)
Switzerland
Canada
5%
Steel-flat
Products
Steel-long
Products
Tubes
Special
and
Quality
Steel
Aluminum
Other Products
28%
31%
9%
10%
8%
14%
Sales split by industry Sales split by markets Sales split by product

7. 7
North America (2006)
Structure: 50-60% through distribution, service centers
Size in value: ~€100bn
Companies: ~1,300 only independent distributors
Europe (2006)
Structure: 67% through distribution, service centers
Size in value: ~€70–90bn
Companies: ~3,000 few mill-tied, most independent
Strong position in Europe;
Acquisition of Primary significantly improved position in NA
Source: Purchasing Magazine (May 2007)Source: EuroMetal, company reports, own estimates
ArcelorMittal
(Distribution approx. 5%)
ThyssenKrupp
Corus
Other
independents
Other
mill-tied
distributors
Klöckner & Co
Olympic Steel
Namasco
(Klöckner & Co)
Ryerson
Other
Reliance Steel
Samuel, Son & Co
ThyssenKrupp Materials NA
Russel Metals
Worthington
Steel
Metals
USA
Carpenter
Technology
PNA Group
McJunkin
O'Neal Steel
Mac-
Steel
AM Castle72.5%
Namasco
with Primary
approx. 1.4%
11%
8%
7%
4%~ 45-
55%
~ 15-
25%
4.5%
2.5%
2.1%
1.8%
0.9%
0.9%
0.8%
1.4%
1.3%
1.2%
1.3%
1.8%
1.4%
1.0%
4.7%

8. 8
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

9. 9
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

10. 10
€36 millionMetalsnabAug 2007
€108 million4 acquisitions2006
€537 million9 acquisitions2007 ytd.
€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 small- and mid-
size bolt-on acquisitions
 Large scale acquisitions when appropriate
Benefits
Strategy
Focus on targets at attractive valuations in 3
directions
 Expansion in new regions
 Extension of product portfolio
 Extension of customer base

11. 11
 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
 Acquisition of Metalsnab in Bulgaria
 Evaluation of market entry in Slovakia,
Turkey an Russia
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

12. 12
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
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

13. 13
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


14. 14
Agenda
1. Overview, market and strategy
2. Financials and outlook
Appendix

15. 15
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)

16. 16
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)

17. 17
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

18. 18
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

19. 19
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

20. 20
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)

21. 21
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

22. 22
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

23. 23
Agenda
1. Overview, market and strategy
2. Financials and outlook
Appendix

24. 24
Appendix
Table of contents
Quarterly/FY results 2006/2005
Steel cycle and EBITDA/cash flow relationship
Convertible bonds – terms and conditions
IPO on 28 June 2006 followed by free float increase

25. 25
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).

26. 26
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
 Cost of material are based on an
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

27. 27
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)

28. 28
IPO on 28 June 2006 followed by free float increase
Current shareholder structure
 Mainly large European
institutional investors
 Increasing share of US
investors
 Growing share of retail
investors
April 2007
sell-down
100%
January 2007
sell-down
84.5%
October 2006
sell-down
55%
Post-IPO
35%
15.5
%
45%
65%
Free float
IPO Highlights
Issue price: €16 per share
Offer Size: €264 million; of which Klöckner received €104 million gross proceeds
from the capital increase
Placement: 16.5 million shares (in total 46.5 million shares); thereof:
 6.5 million new shares from a capital increase
 10 million from the selling shareholder Lindsay Goldberg & Bessemer
(via Multi Metal Investment S.à.r.l.)
LGB/Manage-
ment

29. 29
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

30. 30
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.