Koenig & Bauer AG · XETR:SKB
Koenig & Bauer — 9M 2009 Earnings Presentation
29 slides from Koenig & Bauer's earnings presentation, Nov 13, 2009
Slide 1: KBA financial press conference on 13 November 2009 in Frankfurt
KBA financial press conference on 13 November 2009 in Frankfurt ©KBA Page 1
Slide 2: Programme
Programme ¾ Opening address Helge Hansen, President and CEO, Koenig & Bauer AG ¾ Consolidated financial statements to 30 September Helge Hansen ¾ Current developments in the market and print media sector Klaus Schmidt, Director Marketing and Corporate Communications, KBA Group ¾ Strategic realignmen
Slide 3: Consolidated financial statements to 30 September
Consolidated financial statements to 30 September Helge Hansen, President and CEO, Koenig & Bauer AG ©KBA Page 3
Slide 4: Developments at the KBA Group in 2009
Developments at the KBA Group in 2009 ¾ Inflow of orders for sheetfed presses has surpassed expectations since April ¾ Lack of investment in big web presses and in niche markets ¾ Security presses a haven in a storm ¾ Cash flows from operating activities still positive ¾ High level of Group liquidit
Slide 5: Group performance to 30 September (IFRS)
Group performance to 30 September (IFRS) Order intake Sales Order backlog 01.01. - 30.09. 01.01. - 30.09. 31.12.08/30.09.09 € €m Sheetfed offset presses 1200 Web and special presses 1,075.3 1100 1,005.0 1000 900 682.3 499.9 737.3 800 489.3 (-32.1%) (-31.4%) 700 446.5 600 318.8 501.5 500 371.7 (-11%)
Slide 6: Exports by region
Exports by region* Africa/Latin America Germany 16.6 % 17.2 % Asia/ 23.5 % Pacific 34.8 % 7.9 % Rest of Europe North America * as % of Group sales to 30 September 2009 Export level 83.4% ©KBA Page 6
Slide 7: 2009: third quarter profit
2009: third quarter profit 1st quarter 2009 2nd quarter 2009 3rd quarter 2009 ¾ Gross profit margin 13.6% 17.0% 25.9% ¾ Operating result -€32.7m -€9.7m €11.3m ¾ Pre-tax earnings -€35.2m -€12.2m €9.6m ¾ Post-tax earnings -€33.2m -€13.6m €7.8m ¾ Earnings per share -€2.03 -€0.83 €0.48 ©KBA Consolidated
Slide 8: Healthy balance sheet and strong financial profile
Healthy balance sheet and strong financial profile 30.09.2008 30.09.2009 ¾ Solid equity ratio 37.5% 34.4% ¾ Big reduction in inventories €816.2m €634.1m and trade receivables ¾ Bank debts reduced €63.6m €57.4m ¾ Cash and cash equivalents at high level €113.0m €76.0m ¾ No net debts despite crisis +€5
Slide 9: Competent staff, high-tech production plants
Competent staff, high-tech production plants ¾ Above-average training level of 5.8% ¾ Almost all production staff are engineers and skilled workers ¾ High level of staff qualification a competitive advantage ¾ Investments totalled almost €18m for the nine months ¾ Main production plants in Würzburg
Slide 10: Group prognosis for 2009
Group prognosis for 2009 ¾ Sales will be approx. 25 % lower (approx. €1.1bn) ¾ Balanced pre-tax earnings within reach despite further provisions ¾ At worst, a pre-tax loss in the single-digit million euro range ¾ Payroll will shrink below 7,000 by the end of 2009 and below 6,500 by mid-2010 ¾ KBA st
Slide 11: Current developments in the market and print media sector
Current developments in the market and print media sector Klaus Schmidt, Director Marketing and Corporate Communications, KBA Group ©KBA Page 11
Slide 12: Global press market has shrunk dramatically
Global press market has shrunk dramatically* Total market volume approx. €9bn Normal level Web offset Web offset Sheetfed offset Flexo, gravure, other Newspaper Commercial approx. €1.1bn approx. €1.1bn €5.2bn €1.6bn Total market volume approx. €3.9bn Crisis year 2009 Web offset Web offset Sheetfed o
Slide 13: Web press market
Web press market ¾ Investment has fallen more sharply than expected ¾ Changes in the media market are causing uncertainty (structural crisis) ¾ Cuts in advertising are impacting on print volumes and earnings ¾ Decline in circulations and pagination of newspapers and magazines ¾ The number of insolve
Slide 14: Leading manufacturers' global market shares 2009: newspaper presses
Leading manufacturers’ global market shares* 2009 Volume of newspaper presses: ~€400m Other 17% Goss KBA 6% 42% Wifag 13% Manroland 22% Decline in market volume against 2008: 27% Decline in market volume against 2007: 55% *Lost-order analysis, excluding Japan ©KBA Sources: KBA market research and ca
Slide 15: Global market for newspaper presses
Global market for newspaper presses (excluding Japan) newspaper Tiefdruck 1600 2002 1185 114 2003 955 57 1498 2004 1400 1323 108 2005 1498 1323 168 2006 1050 128 1200 2007 1185 1027 57 2008 493 45 1050 1027 1000 2009 400 35 955 Mio. € 2010 420 25 800 in€m in 600 520 420* 400 400* 200 0 2002 2003 200
Slide 16: Leading manufacturers' global market shares 2009: commercial web presses
Leading manufacturers’ global market shares* 2009 Volume of commercial web presses: ~€220m Other 2% Komori KBA 8% 9% Goss Manroland 35% 46% Decline in market volume against 2008: 58% Decline in market volume against 2007: 70% *Lost-order analysis, excluding Japan ©KBA Sources: KBA market research an
Slide 17: Global market for commercial web offset presses
Global market for commercial web offset presses (excluding Japan) commercial Tiefdruck 1000 679 114 607 57 860 857 900 807 108 807 860 168 800 857 128 650 57 700 550 45 648 220 35 550 220 600 679 25 €mMio. € 607 500 inin 400 300 200 220 * 220* 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 ©KBA
Slide 18: Current trends in sheetfed offset
Current trends in sheetfed offset ¾ Fewer printing plants in industrialised countries Fewer customers ¾ Average plant size is growing Advantage for KBA ¾ Price-sensitive growth markets (China, India) Pressure on margins ¾ New presses are more productive Market volume is shrinking ¾ New competitors f
Slide 19: Leading manufacturers' global market shares 2009: sheetfed offset presses
Leading manufacturers’ global market shares* 2009 Volume of sheetfed offset presses: ~€2.6bn Mitsu- Other bishi KBA 11% 5% 16% Komori 14% Heidelberg Manroland 41% 13% Decline in market volume against 2008: 30% Decline in market volume against 2007: 50% *Sales of new presses ©KBA Sources: KBA, Heidel
Slide 20: Global market for sheetfed offset presses
Global market for sheetfed offset presses When the crisis has passed, the global sheetfed offset market will level at around €4.4bn as the result of structural changes (digital print, internet, automation, mergers) 6 in €bn 5.5 5.3 5 5 4.8 4.4 4.4 4 3.7 3 2.8* 2.6* 2 1 0 2002 2003 2004 2005 2006 200
Slide 21: Strategic realignment of the KBA Group
Strategic realignment of the KBA Group Helge Hansen, President and CEO, Koenig & Bauer AG ©KBA Page 21
Slide 22: KBA well placed in press technology
KBA well placed in press technology ¾ Diversification of risk through engagement in both high-volume and niche markets ¾ Acknowledged driver of innovation in newspaper press technology, with market share of over 40% ¾ Potential for growth in commercial press market ¾ KBA has moved into second positi
Slide 23: Strategic alliance with Indian press manufacturer The Printers House (TPH)
Strategic alliance with Indian press manufacturer The Printers House (TPH) ¾ KBA will handle global sales of TPH’s budget-priced newspaper presses ¾ TPH will promote high-performance KBA newspaper and commercial web presses on the Indian sub continent ¾ There are plans to expand the alliance beyond
Slide 24: KBA-GIORI: banknote production
KBA-GIORI: banknote production ¾ Printing, pre-press, security and converting technology for banknotes ¾ Highly innovative, less volatile sector ¾ KBA has major share of global market ¾ Complexity and sensitivity promote customer loyalty ¾ Synergies for KBA in quality inspection and product coding ©
Slide 25: KBA-Metronic: UV and coding technology
KBA-Metronic: UV and coding technology ¾ Good market position in special presses for UV offset ¾ Prime applications on plastic (lenticular print, smart cards, data storage media) ¾ Substantial share of the German market for inkjet and laser-based product coding, potential for growth in foreign marke
Slide 26: KBA-MetalPrint: metal decorating and more
KBA-MetalPrint: metal decorating and more ¾ Global leader in metal decorating and coating systems ¾ Systems for thermal air purification (chemical and automotive industries) ¾ Ceramic heat accumulators for DLR’s solar tower power plant in Jülich ©KBA Page 26
Slide 27: KBA on mergers in the print media sector
KBA on mergers in the print media sector ¾ Substantial excess capacity among offset printers worldwide ¾ Manufacturers must therefore adjust capacity ¾ Mergers among competitors often result in costly friction losses ¾ KBA is not beholden to investors unfamiliar with the sector ¾ We prefer to draw o
Slide 28: Future strategy: new business lines
Future strategy: new business lines ¾ Press technology remains a core competence ¾ At the same time we are seeking new business lines with good prospects for growth, earnings and employment ¾ Entry via shareholdings or acquisitions ¾ Potentially profitable sectors include - packaging technology - di
Slide 29: Koenig & Bauer AG
Koenig & Bauer AG Friedrich-Koenig-Strasse 4 97080 Würzburg Germany www.kba.com ©KBA Page 29