Klöckner & Co is a leading multi-metal distributor with a distribution network across Europe and North America. The document provides an overview of Klöckner & Co, including its market position, strategy, financial performance and outlook. Key points include Klöckner's focus on acquisitions to drive consolidation in the industry, its STAR program to optimize purchasing and logistics, and financial targets of over 15% sales growth and maintaining 2006 EBITDA levels in 2007.

1. Roadshow
London, October 1/2, 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
CustomerKlöckner & Co
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 approx.
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
28 LocationsUSA
5 LocationsCDN
48 LocationsE
31 LocationsCH
76 LocationsF
25 LocationsD
11 LocationsEastern Europe
7 LocationsNL
1 LocationIRL
25 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
€9 millionLehner & TonossiSep 2007
€14 millionInterpipeSep 2007
€7 millionScanSteelSep 2007
€36 millionMetalsnabAug 2007
€108 million4 acquisitions2006
€567 million12 acquisitions2007 Ytd
€35 millionTournierJan 2007
€14 millionTeulingApr 2007
€360 millionPrimary SteelApr 2007
€17 millionEdelstahlserviceApr 2007
€15 millionMax CarlApr 2007
€11 millionZweygartApr 2007
€23 millionPremier SteelMay 2007
€26 millionWestokJun 2007
€141 million
Sales
2005
Acquired CompanyCountry
2 acquisitions
Accelerating numbers of acquisitions
12
4
2
2005 2006 2007
Number Sales
€141 million
€108 million
€567 million
1
Acquisitions

11. 11
Strong acquisition criteria
Further acquisitions in core markets and Eastern Europe:
• Leverage existing structure in core markets with small- and
mid-size bolt-on acquisitions
• Large scale acquisitions when appropriate
• Acquisitions in Eastern Europe to increase footprint
Focus on targets in 3 directions:
• Expansion of geographic reach
• Extension of customer base
• Extension of product portfolio
Focus on targets at attractive valuations:
• EV/EBITDA multiple between 4x and 5x for smaller
acquisitions
• EV/EBITDA multiple between 5x and 6x for mid-size and large
scale acquisitions
Focus on targets with significant synergy and scale effects:
• Stronger purchasing power
• Streamlining operations and processes, integrating IT
• Integration of STAR
Accretive growth
1

12. 12
Efficient acquisition process
Approach
• Existing local contacts to competitors
• Pro-active contact via M&A advisors
• External contacts (seller, M&A advisors, banks, etc.)
Selection of acquisition targets
• Targets must fulfil acquisition criteria
Handling of acquisition projects
• Depending on size and complexity of the deal and
experience of the country management the process is
either run locally or lead by the headquarters
• Duration of the projects between 3 to 6 months (first
contact to completion)
• Due diligence is focussed on the areas of finance, sales/
marketing, logistics/distribution/stocks, personnel and
legal/environmental
Country
Organization
Group
Joint effort
Size of the project
Complexityoftheproject
Process run by…
1

13. 13
 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 and 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
Leveraging existing distribution network
Sustainable profitable growth
Strategy
Benefits

14. 14
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

15. 15
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


16. 16
Agenda
1. Overview, market and strategy
2. Financials and outlook
Appendix

17. 17
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
Δ%
H1
2006
Δ%(€m)

18. 18
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
Δ %
EBITDA
H1 2006
EBITDA
H1 2007
Δ %
Sales
H1 2006
(€m)

19. 19
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

20. 20
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

21. 21
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

22. 22
New holding facility and convertible
bond increase scope for further acquisitions
325+325-Convertible bond
1,815+7251,090Total facilities
--170170High yield bond
980+500480Total senior bank facilities
380-100480Bilateral credit agreements
600+600-Syndicated loan
510+70440Total
90+3060ABS USA
420+40380ABS Europe
New debt
structure
Change in
debt structure
Old debt
structure
(€m)

23. 23
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

24. 24
Q3 Interim ReportNovember 14:
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

25. 25
Agenda
1. Overview, market and strategy
2. Financials and outlook
Appendix

26. 26
Appendix
Table of contents
Quarterly results and 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
Acquisition example: Primary Steel

27. 27
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).

28. 28
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

29. 29
Namasco Gen. line
Namasco Processing
Acquisition example: Primary Steel
Geographical Scope Facts (2006)
Sales: $467m (€360m)
Employees: 412
Customers: 2,500
Sales split: Plate (89%)
Light flat rolled (8%)
Pipe (3%)
Segments: Heavy Equipment (29%)
Oil & Gas (16%)
Power Generation (6%)
Ship Building (5%)
Transp. Equipm. (5%)
Metal builders (3%)
Construction (3%)
Service Centers (33%)
One of the leading suppliers
of heavy plates in the US with
an excellent reputation
Primary outlet
Primary Sales office
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
Santa Fee Springs
Phoenix
Santa Fee Springs
Tulare
West Memphis
Savannah
Portland
Middletown
New Castle

30. 30
Selection and processing
Contacts
Selection
Processing
 Klöckner & Co was approached by investment bank acting for the seller
 Limited auction process
 Local team with close co-operation with headquarters
 Duration approx. 5 months including negotiations
 Intensive due diligence including all areas
 Further strengthening of market position in the area of heavy plates
 Expansion of geographic reach
 Access to new customer groups
 Improved basis for further acquisitions
 Significant synergy potential
 Reasonable valuation

31. 31
Integration will be fully completed until Q1 2008
Title May Jun Jul Aug Sep Oct Nov Dec Jan
Transfer of ownership 11.05.
Integration of central functions:
11.05. Cash Management
01.07. Reporting finance
01.07. Creditors
01.01.
 Accounting
 Personnel
30.09. Debtors
01.06. Health & safety
24.06. 20.08.
Integration of sites (> 400 employees):
 West Memphis
Co-ordination
Q1 2008
Centralization/Integration
 Purchasing (locally)
01.08. Financing (ABS)
Q1 2008
 Remaining locations
29.07. 20.10. Oakland
05.08. 14.11. Santa Fe Springs

32. 32
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 Fe Springs
Tulare
West Memphis
Savannah
Portland
Middletown
New Castle
Integration of the location Santa Fe Springs (1)
Primary outlet
Primary Sales office
Namasco Gen. line
Namasco Processing
• New geographic
dimension
• 86 employees
• €73 million sales
• 89 Kto sales volume

33. 33
Integration of the location Santa Fe Springs (2)
Organization ProcessTeam
Site Manager (1.0)
Assistants (2.0)
Purchasing (2.0)
Sales (1.0 + 12.0)
Warehouse (1.0 + 32.0)
Processing (2.0)
Logistics (2.5)
Debtors (1.0)
Creditors (0.5)
Quality management (0.5)
Accounting (1.0)
IT (1.0)
Personnel (1.0)
Total: (86.0)
Minimal complexity
Total integration completed
within 12 weeks
• IT network, data
and IT system 8 weeks
• Training new
software 8 weeks
• Intensive
support 2 weeks
Fast process
2 Project managers
(Namasco)
18 Team members
(Namasco
+Primary)
2 Data transfer
(Namasco)
3 Network/
IT-support (Namasco)
Experienced team

34. 34
Significant synergy and scale effects
Integration
Primary Steel will be managed as additional
locations with partial back office integration
• Finance functions and purchasing will be fully
integrated into Namasco’s headquarters in
Atlanta
• Stock management will report to headquarters
• Billing and Credit Management will remain local
but report into same function in headquarters
• Sales remains under local management
• Namasco’s flat rolled SE division will be
reporting into a new sales division “Primary “
• Primary’s brand name be maintained for the
nearer future
Implementation would take until Q1 2008 with
systems’ integration as main challenge
• Estimate 6-8 weeks per location required
• Approximately 50 weeks to fully integrate into
Namasco’s systems
Synergies (in $000’s)
Area
Additional rebates from including
Primary into Namasco’s rebate
schemes and vice versa
Reduction of management and
admin headcounts
Sale of Namasco’s products
through Primary’s warehouses
Increasing value added services
IT Integration cost
Total
2,500
1,000
2,000
1,500
7,000
Additional
EBITDA
p.a.
One-time
expenses
500
500
750
1,750
Expected margin improvement of 1.5%

35. 35
Strong acquisition criteria fulfilled
Further acquisitions in core markets and Eastern Europe:
• Leverage existing structure in core markets with small- and
mid-size bolt-on acquisitions ✔
• Large scale acquisitions when appropriate ✔
• Acquisitions in Eastern Europe to increase footprint
Focus on targets in 3 directions:
• Expansion of geographic reach ✔
• Extension of customer base ✔
• Extension of product portfolio
Focus on targets at attractive valuations:
• EV/EBITDA multiple between 4x and 5x for smaller
acquisitions
• EV/EBITDA multiple between 5x and 6x for mid-size and large
scale acquisitions ✔
Focus on targets with significant synergy and scale effects:
• Stronger purchasing power ✔
• Streamlining operations and processes, integrating IT ✔
• Integration of STAR ✔
Accretive growth ✔

36. 36
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)

37. 37
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

38. 38
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

39. 39
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.