Khd Humboldt Wedag International Ag · XETR:KWG

Khd Humboldt Wedag International — Shareholder Meeting (May 2021)

36 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 20, 2021

  1. Slide 1: Virtual Annual General Meeting

    Virtual Annual General Meeting May 20, 2021 KHD Humboldt Wedag International AG Shen, CEO | Luckas, CFO | Xing, EVP | Dr. Jochem, COO | Mersmann, CTO

  2. Slide 2: Address from KHD’s Chief Financial Officer

    Address from KHD’s Chief Financial Officer  The 2020 financial year was a challenging year, particularly due to the COVID-19 pandemic.  There was a significant decrease in requests for and awards of Capex projects as well as for spare parts and services. Customers worldwide focused on liquidity pr

  3. Slide 3: Address from KHD’s Chief Financial Officer

    Address from KHD’s Chief Financial Officer  In the fourth quarter of 2020, inquiry activity increased so that an almost normal order intake was achieved in this quarter. This trend is continuing in FY 2021; in the Indian market there is even a certain catch-up effect for Capex orders.  Our sales s

  4. Slide 4: Management Board

    Management Board CEO CFO EVP COO CTO Jianlong Shen Jürgen Luckas Tao Xing Dr. Matthias Jochem Matthias Mersmann  CEO since October 2020  Since 2006 with KHD  Member of KHD’s MB  Since June 2019  Since February 2020  Since 2018 in executive  CFO since April 2015 in 2016 and since back at KHD a

  5. Slide 5: Agenda

    Agenda Business Performance 2020 First four months (January – April) of the Financial Year 2021 Project Status and Market Outlook Strategy and Research & Development Questions 5 Annual General Meeting – May 2021

  6. Slide 6: Order Intake and Order Backlog

    Order Intake and Order Backlog  As expected, the total order intake of € 102.1 million was significantly below the previous year's figure (€ 301.1 million). The Corona crisis had a very negative impact on order intake, particularly in the second and third quarters.  The Capex segment achieved an o

  7. Slide 7: Key Figures at a Glance

    Key Figures at a Glance (in € million) 2020 2019 Deviation Order intake 102,1 301,1 -199,0 Revenue 151,2 146,3 4,9 Adjusted gross profit * 11,9 12,1 -0,2 * Adjustments: Adjusted gross profit margin 7,9% 8,3% 2020: € 0,8 million idle capacity Adjusted EBIT * -12,5 -14,4 1,9 2019: € 1,8 million idle c

  8. Slide 8: Revenue

    Revenue Group revenue in € million  Despite the high order backlog at the beginning of 160 151,8 151,2 146,3 the financial year, revenue at € 151.2 million was 140 only slightly higher than in the previous year 120 (€ 146.3 million). 100,1 100  At € 125.4 million, revenue in the Capex segment 80 i

  9. Slide 9: Group Earnings

    Group Earnings  Adjusted gross profit* remained at € 11.9 million, roughly at the adjusted gross profit and GP margin previous year's level of € 12.1 million.  In FY 2020 again unplanned costs due to difficulties in executing some old projects were incurred, which prevented a significantly better

  10. Slide 10: Group Earnings – Sales Expenses and G&A Expenses

    Group Earnings – Sales Expenses and G&A Expenses  Sales Expenses KHD continues to invest actively in market development and intensifying customer relations. The pandemic made direct customer contact more difficult. KHD continues to invest in intensive (targeted) sales activities to convince custome

  11. Slide 11: Segment Earnings

    Segment Earnings Segment Capex Segment Plant Services  Revenues of € 125.4 million were significantly  Revenues of € 25.8 million were significantly below higher than in the previous year (€ 104.2 expectations, also compared to the previous year million), although the Corona crisis prevented a (€

  12. Slide 12: Key Figures at a glance

    Key Figures at a glance (in € million) Dec. 31, 2020 Dec. 31, 2019 Deviation Equity 89,1 101,5 -12,4 Equity ratio 34,4% 39,6% Cash 68,0 82,6 -14,6 Intercompany loans 100,0 100,0 0,0 Net working capital -47,7 -51,2 3,5 Order backlog 240,4 307,8 -67,4 Employees 670 664 6 * Balance of current assets (l

  13. Slide 13: Financial Position

    Financial Position  Total assets as of Dec. 31, 2020 amounted to € 258.9 million (previous year: € 256.7 million), of which:  Cash and cash equivalents € 68.0 million (previous year: € 82.6 million).  Loans to AVIC totaling € 100 million unchanged to previous year (extended until July / November

  14. Slide 14: Employees

    Employees  670 employees at the end of 2020 (end of 2019: 664 employees) – further targeted increase of capacities planned in India.  The workforce in Germany is particularly important for securing and expanding our technological core competencies. 14 Annual General Meeting – May 2021

  15. Slide 15: Agenda

    Agenda Business Performance 2020 First four months (January – April) of the Financial Year 2021 Project Status and Market Outlook Strategy and Research & Development Questions 15 Annual General Meeting – May 2021

  16. Slide 16: Order Intake until April 2021

    Order Intake until April 2021 Order intake in the first four months:  € 97 million approx. 60% of target for 12 months.  € 85 million in the Capex segment.  € 12 million in the Plant Services segment. Very good development of order intake in India. Growing importance of the Chinese market:  Inno

  17. Slide 17: Key Figures January to April 2021 (1)

    Key Figures January to April 2021 (1) Jan. - Apr. Jan. - Apr. (in € million) Deviation 2021 2020 Order intake 96,7 16,2 80,5 Revenue 59,4 30,4 29,0 Adjusted gross profit * 5,8 3,9 1,9 * Adjustments: 2021: € 0.1 million Adjusted gross profit margin 9,8% 12,8% idle capacity 2020: € 0.8 million Adjuste

  18. Slide 18: Key Figures January to April 2021 (2)

    Key Figures January to April 2021 (2) (in € million) Apr. 30, 2021 Dec. 31, 2020 Deviation Equity 88,4 89,1 -0,7 Equity ratio 31,1% 34,4% Cash 81,8 68,0 13,8 Intercompany loans 100,0 100,0 0,0 Net working capital -63,5 -47,7 -15,8 Order backlog 279,0 240,4 38,6 Employees 706 670 36 Jan. - Apr. Jan.

  19. Slide 19: Agenda

    Agenda Business Performance 2020 First four months (January – April) of the Financial Year 2021 Project Status and Market Outlook Strategy and Research & Development Questions 19 Annual General Meeting – May 2021

  20. Slide 20: Product Portfolio

    Product Portfolio  Over 160 years of experience in the cement industry.  We offer the full line of equipment and engineered solutions for cement plants, including individual machines, spare parts, and associated plant services.

  21. Slide 21: Project Status

    Project Status  The COVID-19 pandemic and associated impacts continue to create significant uncertainties in the current FY 2021. In FY 2021, adverse impacts on production and the economy resulting from countermeasures to the pandemic have been largely avoided so far.  Despite the situation in Ind

  22. Slide 22: EPC Tenders and EPC Contracts

    EPC Tenders and EPC Contracts Customer  In some markets, contracts are awarded almost EPC Contract exclusively as one single between Customer and Consortium package (EPC). • Single point of responsibility towards customer • Joint & several liability  KHD will not act as general • Completeness of t

  23. Slide 23: Outlook – Markets 2021

    Outlook – Markets 2021  According to CW Research, global growth in cement consumption of 2.0% is expected for 2021. However, if China is not taken into account, the expected global growth is 2.9%.  The COVID-19 pandemic, its implications and related uncertainties will continue in the current finan

  24. Slide 24: Outlook – Markets 2021

    Outlook – Markets 2021  Forecasted cement consumption in 2021 according BNP Paribas 24 Annual General Meeting – May 2021

  25. Slide 25: Outlook – Markets 2022-23.

    Outlook – Markets 2022-23.  Forecasted cement consumption in 2022/2023 according to BNP Paribas  Cement Consumption 2022f (Growth%) 25 Annual General Meeting – May 2021

  26. Slide 26: Global Cement Consumption (in billion tons)

    Global Cement Consumption (in billion tons) 5,00  Cement consumption has 4,50 4,26 4,35 stagnated since 2013. 4,15 4,14 4,15 4,09 4,17 4,04 4,07 4,01 4,05 4,02 3,94 4,00 3,57 3,78  The year 2020 was hit hard by the 3,50 3,23 effects of the COVID-19 pandemic. 3,01 2,76 2,83 3,00  From 2021, modera

  27. Slide 27: Agenda

    Agenda Business Performance 2020 First four months (January – April) of the Financial Year 2021 Project Status and Market Outlook Strategy and Research & Development Questions 27 Annual General Meeting – May 2021

  28. Slide 28: Business Strategy at KHD (1)

    Business Strategy at KHD (1)  Consistent continuation of the measures introduced in previous years.  Focus on projects where KHD offers customers real added value  not purely volume-driven growth.  Careful selection with regard to the risk structure of projects.  Exploitation of considerable po

  29. Slide 29: Business Strategy at KHD (2)

    Business Strategy at KHD (2) Strategy / Objectives Actions Technology Leadership • Ongoing product development through investment in R&D with a focus on environmental aspects and energy efficiency • Success stories: PYRORDOX® and PYROROTOR® “Go China”: Quality Leadership through • Global engineering

  30. Slide 30: Business Strategy at KHD (3)

    Business Strategy at KHD (3) Strategy / Objectives Actions Generate additional business volume in • Focusing of sales activities and fast processing of the Plant Services segment customer inquiries by digitization of internal and external processes • Strengthening the consulting function for our cus

  31. Slide 31: Research & Development at KHD (1)

    Research & Development at KHD (1) Available today R&D Focus Excellent PYRO equipment, • Solutions for alternative fuels with integrative scope new products PYROREDOX®, expansion PYROROTOR® • New improved cyclone design Good roller press / grinding circuits • Suitable for higher fineness and composit

  32. Slide 32: Research & Development at KHD (2)

    Research & Development at KHD (2) Available today R&D Focus Design for our product portfolio aligned to • “Go China”: procurement on Western markets • Evaluation of components for procurement and manufacturing in the Chinese market • Development of product versions specifically adapted to the Chines

  33. Slide 33: R&D at KHD – De-carbonization of the Cement Production

    R&D at KHD – De-carbonization of the Cement Production Focus of technological developments: Roadmap for CO2-reduction in the cement industry » Energy efficiency: (iea, World Business Council for Sustainable Development) » KHD roller press » KHD pyro lines » Alternative fuels: » PYROROTOR® » PYROREDO

  34. Slide 34: Agenda

    Agenda Business Performance 2020 First four months (January – April) of the Financial Year 2021 Project Status and Market Outlook Strategy and Research & Development Questions 34 Annual General Meeting – May 2021

  35. Slide 35: Questions

    Questions 35 Annual General Meeting – May 2021

  36. Slide 36: Disclaimer for Forward-Looking Information

    Disclaimer for Forward-Looking Information This document contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. Forward- looking statements are not based on historical facts, but rather on current expectations and projections about future

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