Khd Humboldt Wedag International Ag · XETR:KWG

Khd Humboldt Wedag International — Shareholder Meeting (May 2018)

39 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 29, 2018

  1. Slide 1: Annual General Meeting

    Annual General Meeting Gerold Keune, CEO KHD Humboldt Wedag International AG Jürgen Luckas, CFO Dian Xie, EVP May 29, 2018

  2. Slide 2: Over 160 years of experience in the cement industry

    » Over 160 years of experience in the cement industry. » Process engineering and project execution. » We offer the full line of equipment and engineered solutions » Leader in energy-efficient and environmentally friendly for cement plants, including individual machines, spare parts, products for the

  3. Slide 3: Management Board

    Management Board Dian Xie, EVP Gerold Keune, CEO Jürgen Luckas, CFO  Since 2017 with KHD  Since 2016 with KHD  Since 2006 with KHD  Study of Engineering at the  Study of Industrial Engineering at  CFO since April 2015 Northwestern Polytechnical the Technical University of Berlin  Study of Bus

  4. Slide 4: Agenda

    Agenda Business Performance 2017 Financial Performance 2017 First months (Jan. – April) of the financial year 2018 Outlook and Strategy Questions 4 Annual General Meeting – May 2018

  5. Slide 5: ACC Limited Jamul Plant, Jamul, Chhattisgarh, India

    ACC Limited Jamul Plant, Jamul, Chhattisgarh, India This new 9,000 tpd plant marked KHD’s first full-line project with ACC Limited, a major player in the Indian market. KHD supplied its energy-efficient COMFLEX® technology for the raw material grinding plant, as well as core equipment for pyroproces

  6. Slide 6: LafargeHolcim Ravena Plant, Ravena, NY, USA

    LafargeHolcim Ravena Plant Ravena, NY, USA  5,000 tpd Kiln Line  KHD Preheater PR 9067/5 (5-Stage) with Low NOx PYROCLON® Calciner, PYROTOP® Mixing Chamber, PYROLOOP Tertiary Air Mixing system  3 Station Kiln 5.0 m dia. X 75 m long  KHD PYROFLOOR Cooler PFC2 741 AW  KHD PYROJET Kiln Burner  PY

  7. Slide 7: Cemento Andino, S.A. Plant, Trujillo, Venezuela

    Cemento Andino, S.A. Plant Trujilo, Venezuela  3,500 tpd Kiln Line  KHD Preheater PR 8254/5 (5-Stage) with LowNOx PYROCLON® Calciner, PYROTOP® Mixing Chamber, and PYROLOOP Tertiary Air Mixing system  3 Station Kiln 4.4 m dia. X 64 m long  KHD PYROFLOOR Cooler PFC2 635 AW  KHD PYROCRUSHER PRC 36

  8. Slide 8: LafargeHolcim Exshaw Plant, Exshaw, Alberta, Canada

    LafrageHolcim Exshaw Plant Exshaw, Alberta, Canada  4,200 tpd Kiln Line  KHD Preheater PR 9067/5 (5-Stage) with LowNOx PYROCLON® Calciner, PYROTOP® Mixing Chamber and PYROLOOP Tertiary Air Mixing system  3 Station Kiln 5.0 m dia. X 54 m long  KHD PYROFLOOR Cooler, PFC2  KHD PYROJET Kiln Burner

  9. Slide 9: Shah Cement, Bangladesh

    SHAH CEMENT Bangladesh Grinding Upgrade • KHD SUPPLY INCLUDES: • Roller Press (RPZM-16 (170/180) • SKS Separator, V-Separator, • Auxiliary Equipments • HIGHLIGHTS: • Entry project in Bangladesh • Upgrade of Ball Mill Circuit with Roller Press in Semi finished mode • Guaranteed output with lowest pow

  10. Slide 10: UTCL Patliputra, Bihar, India

    UTCL PATLIPUTRA Patliputra, Bihar, India Slag Grinding Circuit • KHD SUPPLY INCLUDES: • Roller Press Stud Surface (RPZ 7 (170/90)) • SKS Separator, V-Separator, • Auxiliary Equipments • HIGHLIGHTS: • PG Test completed within 6 months after Commissioning • Better output with lower power consumption t

  11. Slide 11: Ghorahi Cement Ltd, Dang, Nepal

    GHORAHI CEMENT LTD, Dang, Nepal 102 TPH OPC Grinding • KHD SUPPLY INCLUDES: • Roller Press - RPZ 7 – 170/90, • SKS Separator, V-Separator, • Auxiliary Equipments • HIGHLIGHTS: • Fast track project, commissioned within 15 months from contract signing date 11 Annual General Meeting – May 2018

  12. Slide 12: Global Cement Consumption (billion tons)

    Global Cement Consumption (billion tons) • Weak year 2017 with 5,00 4,47 4,56 worldwide decrease in 4,50 4,19 4,28 4,38 4,04 4,15 4,05 4,12 4,06 4,05 4,07 4,11 4,16 4,21 cement consumption. 4,00 3,78 3,57 • Lateral movement of 3,50 3,23 3,01 the overall market, but 3,00 2,76 2,83 growth continues in

  13. Slide 13: Order Intake

    Order Intake  Total order intake of € 182.5 million was significantly higher than in the previous year (€ 83.0 million).  After two years of declining order intake an important turnaround was achieved in the 2017 financial year.  The Capex segment achieved order intake of € 140.7 million, signifi

  14. Slide 14: Agenda

    Agenda Business Performance 2017 Financial Performance 2017 First months (Jan. – April) of financial year 2018 Outlook and Strategy Questions 14 Annual General Meeting – May 2018

  15. Slide 15: Key Figures at a Glance

    Key Figures at a Glance in € million 2017 2016 Difference Order Intake 182.5 83.0 99.5 Revenue 100.1 135.4 -35.3 Adjusted Gross Profit 12.4 7.6 4.8 Adjusted Gross Profit Margin (in %) 12.4 5.6 6.8 Adusted EBIT -19.5 -27.3 7.8 Adjusted EBIT-Margin (in %) -19.5 -20.2 0.7 EBT -16.9 -25.1 8.2 Group net

  16. Slide 16: Revenue

    Revenue  Low order backlog at the beginning of FY 2017 led to revenue of € 100.1 million – a 26.1% decrease in comparison with previous year (€ 135.4 million).  Revenue of the Capex segment amounting to € 62.2 million was significantly below pervious year (€ 96.2 million).  Revenue of the segment

  17. Slide 17: Group earnings

    Group earnings  Adjusted gross profit* increased from € 7.6 million in 2016 to € 12.4 million in 2017, despite the absolute decline in revenue. In the previous year, the adjusted gross profit was affected by high additional costs due to difficulties in the execution of several large projects.  Low

  18. Slide 18: Group earnings – Sales and general & administrative expenses

    Group earnings – Sales and general & administrative expenses 20 17,8  General & administrative expenses 15,6 15 13,1 13,7 Continuous cost reduction measures resulted in a 10 significant reduction in G&A costs within a multi- year comparison. 5 0 2015 2016 2017 2018 Budget  Sales expenses General a

  19. Slide 19: Segment earnings

    Segment earnings Segment Capex Segment Plant Services  Revenues of € 62.2 million were  Revenue of € 37.9 million decreased significantly lower than previous year compared to the previous year (€ 96.2 million). (€ 39.3 million)  Adjusted gross profit of € 2.8 million  Satisfactory gross profit o

  20. Slide 20: Financial Position

    Financial Position Cash and Cash Equivalents  Total assets of € 282.6 140 million (€ 330.1 million in 120 FY 2016), thereof: 38,5  Cash and cash 100 80 56,4 equivalents of 21,3 18,8 € 84.1 million 60 33,9 85,2 (previous year: 40 62,8 63,3 56,1 € 78.1 million), 20 44,2  Loan to AVIC of - 31.12.201

  21. Slide 21: Employees

    Employees  666 employees by the end of 2017 (end of 2016: 707 employees). 800 735 707 666 661 700 600 500 349 324 285 284 400 300 200 282 306 311 310 100 0 31.12.2015 31.12.2016 31.12.2017 30.04.2018 India Europe Americas Russia Asia 21 Annual General Meeting – May 2018

  22. Slide 22: Key Figures at a Glance

    Key Figures at a Glance in € million Dec. 31, 2017 Dec. 31, 2016 Difference Equity 149.8 172.2 -22.4 Equity ratio (in %) 53.0 52.2 0.8 Cash and intercompany loan * 184.1 178.1 6.0 Net working capital ** -9.0 13.4 -22.4 Order Backlog 168.3 131.5 36.8 Employees 666 707 41 * Intercompany loan of € 100

  23. Slide 23: Agenda

    Agenda Business Performance 2017 Financial Performance 2017 First months (Jan. – April) of financial year 2018 Outlook and Strategy Questions 23 Annual General Meeting – May 2018

  24. Slide 24: Key Figures Jan. – April 2018

    Key Figures Jan. – April 2018 in € million 30.04.2018 30.04.2017 Difference Order Intake 75.4 66.5 8.9 Revenue 37.7 32.3 5.4 Adjusted Gross Profit * 5.0 6.0 -1.0 Adjusted Gross Profit Margin 13.3 18.6 -5.3 (in %) Adjusted EBIT * -4.4 -5.1 0.7 Adjusted EBIT Margin (in %) -11.7 -15.8 4.1 EBT -3.0 -5.2

  25. Slide 25: Key Figures Jan. – April 2018

    Key Figures Jan. – April 2018 in € million 30.04.2018 30.04.2017 Difference Operating cash flow -1.3 -3.8 2.5 Cash flow from investing activities 0.6 1.7 -1.1 Cash flow from financing activities -0.2 -0.1 -0.1 in € million 30.04.2018 Dec. 31, 2017 Difference Equity 144.2 149.8 -5.6 Equity ratio (in

  26. Slide 26: Development of order backlog in € million

    Development of order backlog in € million 400 350 339,3 300 250 199,9 202,5 200 168,3 151,4 150 99,1 100 50 0 2013 2014 2015 2016 2017 4 2018 * Order backlog has been retroactively corrected for project reversals or cancellations. 26 Annual General Meeting – May 2018

  27. Slide 27: Agenda

    Agenda Business Performance 2017 Financial Performance 2017 First months (Jan. – April) of financial year 2018 Outlook and Strategy Questions 27 Annual General Meeting – May 2018

  28. Slide 28: Outlook – markets 2018

    Outlook – markets 2018  The International Monetary Fund expects a growth rate of the global economy of 3.7% in 2018 (3.6% in 2017).  Worldwide medium-term increase in cement consumption (excluding China) is based on expectations of a continuing recovery in the US, a broad recovery in Europe and im

  29. Slide 29: Business Strategy at KHD (1)

    Business Strategy at KHD (1) Strategy / objectives Actions to be taken Leadership in technology • Ongoing product development through investment in R&D Quality leadership through excellence • Global engineering for optimal use of in project execution capacities with focus on the Indian location. • O

  30. Slide 30: Business Strategy at KHD (2)

    Business Strategy at KHD (2) Strategy / objectives Actions to be taken Generate additional • Strengthening the advisory function for our business volume in customers (Plant Audits) Plant Services and • Development of service concepts Capex through service • Significant expansion of customer-oriented

  31. Slide 31: Strengthening Sales Activities

    Strengthening Sales Activities  Our initiatives to strengthen sales include important building blocks: • Intensification of customer care • Expansion of local sales offices, among others through new sales office in East Africa • Strengthening the worldwide representative network • Increase of the t

  32. Slide 32: Workshop in India

    Workshop in India  Expansion of manufacturing capacity in India by construction of a new workshop in Faridabad; size of total plot approx. 16,000 m2.  At the new location, about 70 employees will work on the production of KHD's core products (including roller presses).  KHD achieves more than a d

  33. Slide 33: Further Development of Products and Services

    Further Development of Products and Services Products  Strengthening the KHD product portfolio through application-related product development with a special focus on roller presses, ball mills and environmentally friendly solutions.  Integration of KHD Know how into global solutions: Modernizatio

  34. Slide 34: R & D at KHD – based on Energy, Environment and Efficiency

    R & D at KHD – based on Energy, Environment and Efficiency PYROROTOR® Technology (first order in Austria)  Rotary Drum Reactor for burning of coarse alternative fuels.  PYROROTOR® Technology for new plants as well as for plant modifications.  Mechanical fuel transport through reactor with suffici

  35. Slide 35: Corporate Social Responsibility at KHD

    Corporate Social Responsibility at KHD First-time publication of a group-wide sustainability report for the 2017 financial year (http://www.khd.com/csr-bericht.html) in addition to the regular financial reporting.  Sustainability at KHD is embedded in the group-wide Code of Conduct.  Sustainabilit

  36. Slide 36: Summary: Continuation of Business Strategy 2020

    Summary: Continuation of Business Strategy 2020  KHD is investing in its future despite a difficult market environment through headcount increase in the areas of sales, product development and site services.  KHD reduces costs and increases product quality by strengthening standardized engineering

  37. Slide 37: Agenda

    Agenda Business Performance 2017 Financial Performance 2017 First months (Jan. – April) of the financial year 2018 Outlook and Strategy Questions 37 Annual General Meeting – May 2018

  38. Slide 38: Questions

    Questions 38 Annual General Meeting – May 2018

  39. Slide 39: 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

KHD Humboldt Wedag International — Shareholder Meeting (May 2018) on 6ix