Klöckner & Co SE achieves best operating result in fiscal year 2021 since IPO

DGAP-News: Klöckner & Co SE / Key word(s): Annual results
09.03.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

Substantial increase in operating profit (EBITDA) before significant special effects to €848 million (2020: €111 million)

– Proposed record dividend of €1.00 per share

– Further increase in digital sales share – Kloeckner Assistant generates annual sales over 1 billion euros

– Development of a reliable and transparent classification of “green” steel – first products already available this year – ambitious shipping targets specified for 2025 to 2030

– Statement of intent, new claim and logo evolution underline ambition to pioneer a sustainable steel industry

Duisburg, Germany, March 9, 2022 – Klöckner & Co generated its best operating result in the 2021 financial year since the Company’s IPO in 2006. The turnover for the year 2021 increased very substantially by 45% to reach €7.4 billion (2020: €5.1 billion). Thanks to the positive market environment, the operating result (EBITDA) before significant special effects rose from 111 million euros the previous year to 848 million euros. Net income was also extremely strong at €629 million, compared to a net loss of €114 million the previous year. Earnings per share thus amount to €6.21 (2020: loss per share of €1.16). In view of the record results for the 2021 financial year, Klöckner & Co will propose an unusually high dividend of €1.00 per share to shareholders at the Annual General Meeting.

Due to the price-driven increase in net working capital throughout the year and the funding of pension liabilities of €243 million in the fourth quarter, cash flow from operating activities decreased was negative with a cash outflow of €306 million (2020: receipt of €161 million). Conversely, the equity ratio improved due to the exceptionally high net income to a very strong 47% (31 December 2020: 40%).

Guido Kerkhoff, CEO of Klöckner & Co SE: “2021 was an extremely successful year in the history of our company. With our new strategy, “Klöckner & Co 2025: Building on our strengths”, we have started to put our company back on the path to sustainable growth. Over the past few years, we have developed distinct strengths and capabilities which we now systematically leverage to become the leading digital one-stop-shop platform for steel, other materials, equipment and process services in Europe and in the Americas, as well as a pioneer in sustainability. .”

Progress in digital transformation

The implementation of the group strategy has further accelerated digitalization and automation at Klöckner & Co over the past year. The kloeckner.i digital unit was repositioned, a hub was established in the US, and the share of sales generated through digital channels increased to 46% in the fourth quarter. The AI-driven Kloeckner Assistant app has been expanded and is now a key tool in the increasingly automated processing of quotes and orders. Klöckner & Co has thus generated digital sales of more than one billion euros via the solution in 2021. In the next stage of development of the tool, it should digitize and automate 80% of sales processes and will be deployed soon. in other parts of the Klöckner & Co. value chain.

Klöckner & Co as a pioneer of a sustainable steel industry: goals, partnerships and categorization metrics

Klöckner & Co took key steps last year in establishing itself as a pioneer of a sustainable steel industry. The company assumes its environmental responsibility under the slogan “kloeckner is committed to 2040” and has already joined in 2020 – as one of the few players in the steel sector – the Science Based Targets initiative (SBTi ) “Business Ambition for 1.5 C”, the world’s most ambitious and high-profile framework for reducing emissions. As a first step, Klöckner & Co aims to significantly reduce its directly controllable greenhouse gas emissions by 2030. The medium-term carbon reduction targets adopted were recognized by the SBTi in January 2022 as targets based on science. In the long term, the Company also plans to reduce directly controllable carbon emissions to net zero by 2040. In addition to extensive reduction measures across all scopes, the Company is already offsetting currently unavoidable emissions from scopes 1 and 2 by investing in , certified offset projects. As a result, Klöckner & Co is already carbon neutral today.

As a pioneer on the path to a sustainable steel industry, Klöckner & Co is exploiting the strategic opportunities offered by decarbonization. In its strategy, the Company has made green solutions an integral part of its business model and built a sustainable range of products and services. In this context, by partnering with the Swedish company H2 Green Steel, it has ensured access to substantial quantities of steel with almost no carbon emissions. So that customers can reliably, transparently and easily see the carbon footprint of a product purchased from Klöckner & Co in the future, the company has developed a categorization metric for green and low carbon steel. carbon in collaboration with the Boston Consulting Group. The categorization metric is rooted in international scientific standards and categorizes low carbon steel based on certified emissions generated throughout the value chain, from resource extraction to production. By classifying products into six categories, the company has created an easy way to reliably assess and compare the carbon footprint of green steel. Klöckner & Co will be able to supply low carbon steel in different scale categories by the end of 2022. This will enable Klöckner & Co to help its customers build sustainable value chains at from this year. Klöckner & Co aims for the two lowest carbon footprint categories to account for more than 30% of its entire range by 2025 and 50% by 2030. This equates to an annual reduction in carbon emissions. carbon of about four million tons.

Statement of purpose, claim and logo highlight sustainability ambitions

In order to orient itself in a rapidly changing environment, Klöckner & Co has carried out an intensive corporate identity process in recent months, developing a statement of intent and claim and adapting the Group logo. The purpose statement was defined in a 360-degree process incorporating employee feedback: “We partner with customers and suppliers to deliver innovative metal solutions for a sustainable future.” This underlines the perception of Klöckner & Co as a reliable partner for customers and suppliers, with innovative solutions that go beyond the sole supply of steel. At the same time, Klöckner & Co is working for a sustainable future and aims to evolve from a digital pioneer in the steel industry to a pioneer in sustainability. The corporate statement formulated in this context reflects the statement of intent and summarizes the fundamental brand promise: “Your partner for a sustainable future”. Klöckner & Co will also appear under an adapted logo in order to reinforce its brand positioning.

Outlook

Klöckner & Co expects a further increase in steel demand this year in its main markets of Europe and North America. The company already expects considerable sales growth in the first quarter of 2022 compared to the year-ago quarter. The forecast of an operating result (EBITDA) of 130 to 180 million euros before significant special effects is confirmed (Q1 2021: 130 million euros). In addition, Klöckner & Co anticipates positive material special effects amounting to €54 million in the first quarter of 2022 from property sales in Switzerland and France.

About Klockner & Co:
Klöckner & Co is one of the largest independent distributors of steel and metal products and one of the world’s leading steel service companies. Based on its distribution and service network of approximately 140 locations in 13 countries, Klöckner & Co supplies more than 100,000 customers. Currently, the Group has approximately 7,200 employees. Klöckner & Co achieved a turnover of approximately 7.4 billion euros in the financial year 2021. As a pioneer of digital transformation in the steel industry, Klöckner & Co’s goal is digitize and automate much of its supply and service chain and become the digital leader. one-stop-shop platform for steel, other materials, processing equipment and services in Europe and America, as well as a pioneer in sustainability – for the benefit of customers, the steel industry and society .

The shares of Klöckner & Co SE are admitted to trading on the regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) together with other post-admission bonds (Prime Standard). Klöckner & Co shares are listed in Deutsche Börse’s SDAX(R) index.

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

Contact Klöckner & Co SE:

hurry
Christian Pokropp – Press Officer
Corporate Communications Manager |
Group HR Manager
Telephone: +49 203 307-2050
Email: [email protected]

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

09.03.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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