KLÖCKNER & CO SE SUBSTANTIALLY BOOSTS EARNINGS IN FIRST NINE MONTHS OF 2016

• Operating income (EBITDA) of €159 million more than double that for prior-year period
• Net income once again strongly positive at €50 million, compared with €85 million loss in prior-year period
• Sales via digital channels steadily increased to 11% in third quarter
• Full-year targets confirmed; EBITDA guidance narrowed to between €180 million and €190 million

Duisburg, Germany, November 3, 2016 – Despite a restructuring and price-related fall in sales compared to last year, Klöckner & Co more than doubled its operating income (EBITDA) to €159 million (9M 2015: €76 million before restructuring expenses). This was mainly driven by a surge in gross profit from €940 million to €996 million. The gross profit margin showed a corresponding increase from 18.9% to 23.0%. The EBITDA margin improved from 1.5% to 3.7%. Net income was well back into positive figures at €50 million (9M 2015: €85 million net loss).

The year’s positive trend is expected to continue in the final quarter, with an anticipated operating income once again above the prior-year figure. For the full year, EBITDA is expected to be between €180 million and €190 million with a positive net income.

Substantial progress has been made with transforming the business model under the “Klöckner & Co 2020” strategy. Further stepping up the use of digital pricing tools, for instance, was a key factor behind the tangible improvement in margins. The proportion of sales generated through digital channels steadily increased to 11% in the third quarter.

Klöckner & Co is also pushing ahead with expanding its business with higher value-added products and services. Through subsidiary Becker Stahl-Service, the Group is building a service center to process aluminum flat products at its Bönen location in North Rhine-Westphalia, Germany. The first of two machining lines – at €35 million the highest investment in BSS’s corporate history – is to be completed as early as next year. The facility is expected to reach full capacity in 2018 with the ability to process a total of 80,000 tons of aluminum a year.

Under the new “One Europe” optimization program announced this summer, the activities of the country organizations in Austria, Belgium, Germany, France, the Netherlands, Spain and the United Kingdom are to be integrated further. The new organizational structure will be implemented at the beginning of 2017. “One Europe” is targeting to deliver an incremental contribution to EBITDA totaling about €30 million by 2019, of which €10 million is to be achieved as early as next year.

Gisbert Rühl, CEO of Klöckner & Co SE: “After the market- and restructuring-driven impacts of the past few years, our improved operating lineup is now increasingly visible in the results. By systematically implementing our digitalization strategy and the extension of business envolving higher value-added products and services, we are working all out to ensure that the upward trend continues.”