Khd Humboldt Wedag International Ag · XETR:KWG

Khd Humboldt Wedag International — Shareholder Meeting (May 2019)

36 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 28, 2019

  1. Slide 1: Annual General Meeting

    Annual General Meeting Yizhen Zhu, CEO KHD Humboldt Wedag International AG Jürgen Luckas, CFO Dian Xie, EVP Tao Xing, EVP May 28, 2019

  2. Slide 2: Address of Yizhen Zhu – Chief Executive Officer of KHD

    Address of Yizhen Zhu – Chief Executive Officer of KHD  Financial year 2018 was one of the most difficult years in the history of KHD. The turnaround expected in the previous year proved unsustainable.  The reorganization of Humboldt Wedag GmbH at the Cologne headquarters will produce leaner struc

  3. Slide 3: 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

  4. Slide 4: Management Board

    Management Board CEO CFO EVP EVP Yizhen Zhu Jürgen Luckas Dian Xie Tao Xing  Since 2006 with KHD  Since 2017 with KHD  Member of the  From 2011 to 2017 Management Board of Board Member,  CFO since April  More than 30 years of KHD in 2016 and since Chairman of the 2015 professional experience D

  5. Slide 5: Agenda

    Agenda Business Performance 2018 Financial Performance 2018 First Months (Jan. – April) of the Financial Year 2019 Outlook and Strategy Questions 5 Annual General Meeting – May 2019

  6. Slide 6: Nuh Çimento, Kocaeli, Turkey

    Nuh Çimento, Kocaeli, Turkey  Extensive conversion project for two roller press systems in Turkey  KHD scope: two RP systems (RPM 16) and V-separators  With the new roller press systems, NUH Çimento is able to meet all requests from the domestic and export market and grind all cement types as wel

  7. Slide 7: BATI ANADOLU Group, Batisöke, Turkey

    BATI ANADOLU Group, Batisöke, Turkey  Conversion project of a pyro line for a 5,000 tpd plant in Batisöke, Turkey  KHD scope: Heat exchanger PR 9067 (new design of cyclones), kiln, calciner, PYROCLON®-Low NOx, PYROFLOOR2® clinker cooler, pyrocrusher, PYROJET® burner 7 Hauptversammlung – Mai 2019

  8. Slide 8: Guinee Industries Ciments S.A. Conakry, Guinea

    Guinee Industries Ciments S.A. Conakry, Guinea  Extensive conversion project for a roller press system in Guinea  KHD scope: roller press system (RPS 16-170/180), V-separators, dynamic separators (KS-VC 3500), process fan  Energy consumption per ton of cement has been reduced significantly 8 Haup

  9. Slide 9: Shree Cement Bihar, India

    Shree Cement Bihar, India  Delivery of a ball mill (4.6 x 15m) and a dynamic separator  Delivery of the ball mill three months ahead of schedule thanks to efficient procurement and manufacturing 9 Hauptversammlung – Mai 2019

  10. Slide 10: Dalmia Cement Belgaum, India

    Dalmia Cement Belgaum, India  New construction of a complete pyro line for a 4,500 tpd plant in Belgaum  Grinding systems for raw material and clinker  KHD scope: ○ Preheater with LowNOx calciner ○ Kiln including PYROJET® burner ○ PYROFLOOR® clinker cooler ○ COMFLEX® roller press system for raw m

  11. Slide 11: Global Cement Consumption (in billion tons)

    Global Cement Consumption ( in billion tons) • 2018 was another weak 5,00 year with a decline in 4,68 4,41 4,50 4,59 global cement 4,50 4,21 4,31 4,19 4,04 4,15 4,05 4,12 4,12 4,09 4,07 4,07 4,09 4,14 consumption. 4,00 3,78 3,57 3,50 3,23 • Lateral movement of 3,01 the overall market, but 3,00 conti

  12. Slide 12: Order Intake

    Order Intake  Total order intake of € 141.7 million was significantly lower than in the previous year (€ 182.5 million).  The previous year's expected turnaround in order intake proved unsustainable in the 2018 financial year.  The Capex segment achieved order intake of € 98.6 million, significan

  13. Slide 13: Agenda

    Agenda Business Performance 2018 Financial Performance 2018 First Months (Jan. – April) of the Financial Year 2019 Outlook and Strategy Questions 13 Annual General Meeting – May 2019

  14. Slide 14: Key Figures at a Glance

    Key Figures at a Glance (in € million) 2018 2017 Difference Order Intake 141.7 182.5 -40.8 Revenue 151.8 100.1 51.7 Adjusted Gross Profit -0.6 12.4 -13.0 Adjusted Gross Profit Margin (in %) -0.4 12.4 -12.8 Adusted EBIT -28.6 -19.5 -9.1 Adjusted EBIT-Margin (in %) -18.8 -19.5 0.7 EBT -23.9 -16.9 -7.0

  15. Slide 15: Revenue

    Revenue  Relatively high order backlog at the beginning of FY 2018 led to revenue of € 151.8 million – a 51.7% increase in comparison with previous year (€ 100.1 million).  Revenue of the Capex segment amounting to € 108.8 million was significantly above pervious year (€ 62.2 million).  Revenue o

  16. Slide 16: Group Earnings

    Group Earnings  Adjusted gross profit* decreased from € 12.4 million in FY 2017 to € -0.6 million in 2018.  In the 2018 financial year the adjusted gross profit was affected by high additional costs due to difficulties in the execution of several projects.  Low order intake especially in the seco

  17. Slide 17: Group Earnings – Sales and General & Administrative Expenses

    Group Earnings – Sales and General & Administrative Expenses 20 17,8  General & administrative expenses 15,6 13,1 15 12,4 12,7 Continuous cost reduction measures resulted in a 10 significant reduction in G&A costs within a multi-year 5 comparison. 0 2015 2016 2017 2018 2019 Forecast General and adm

  18. Slide 18: Segment Earnings

    Segment Earnings Segment Capex Segment Plant Services  Revenues of € 108.8 million were  Revenue of € 43.0 million increased significantly above than previous year by 13.5% compared to the previous (€ 62.2 million). year (€ 37.9 million)  Adjusted gross profit of € -12.0 million  Satisfactory gr

  19. Slide 19: Financial Position

    Financial Position  Total assets of € 270.4 million (€ 282.6 million in FY 2017), thereof:  Cash and cash equivalents of € 72.2 million (previous year: € 84.1 million),  Loan to AVIC of € 100 million (previous year: € 100 million).  KHD with robust liquidity and equity of € 123.1 million (equity

  20. Slide 20: Employees

    Employees  703 employees by the end of 2018 (end of 2017: 666 employees). 800 735 707 703 666 630 700 57 35 29 600 31 33 500 287 349 324 285 203 400 300 200 352 359 282 306 311 100 0 31.12.2015 31.12.2016 31.12.2017 31.12.2018 Forecast 2019 India Europe Americas Russia Asia  The forecasted figure

  21. Slide 21: Key Figures at a Glance (in € million)

    Key Figures at a Glance (in € million) Dec. 31, 2018 Dec. 31, 2017 Difference Equity 123.1 149.8 -26.7 Equity ratio (in %) 45.5 53.0 -7.5 Cash and intercompany loan * 172.2 184.1 -11.9 Net working capital ** -22.5 -9.0 13.5 Order Backlog 153.6 168.3 -14.7 Employees 703 666 37 * Intercompany loan of

  22. Slide 22: Agenda

    Agenda Business Performance 2018 Financial Performance 2018 First Months (Jan. – April) of the Financial Year 2019 Outlook and Strategy Questions 22 Annual General Meeting – May 2019

  23. Slide 23: Key Figures Jan. – April 2019

    Key Figures Jan. – April 2019 (in € million) April 30, 2019 April 30, 2018 Difference Order Intake 23.5 75.4 -51.9 Revenue 60.6 37.7 22.9 Adjusted Gross Profit * 0.2 5.0 -4.8 Adjusted Gross Profit Margin 0.3 13.3 -12.9 (in %) Adjusted EBIT * -9.8 -4.4 -5.4 Adjusted EBIT Margin (in %) -16.2 -11.7 -4.

  24. Slide 24: Key Figures Jan. – April 2019

    Key Figures Jan. – April 2019 (in € million) April 30, 2019 April 30, 2018 Difference Operating cash flow -9.1 -1.3 -7.8 Cash flow from investing activities 1.0 0.6 0.4 Cash flow from financing activities -1.0 -0.2 -0.8 (in € million) April 30, 2019 April 30, 2018 Difference Equity 105.9 123.1 -17.2

  25. Slide 25: Agenda

    Agenda Business Performance 2018 Financial Performance 2018 First Months (Jan. – April) of the Financial Year 2019 Outlook and Strategy Questions 25 Annual General Meeting – May 2019

  26. Slide 26: Outlook – Markets 2019

    Outlook – Markets 2019  The International Monetary Fund expects the global economy to grow by 3.7% in 2019 and 2020 (3.7% in 2018).  Global increase in cement consumption will continue to be at a low level and is significantly influenced by declining cement demand in China. With an increase of 1.5

  27. Slide 27: 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 with focus on environmental and energy efficiency Quality leadership through excellence • Global engineering for optimal use of in project execution

  28. Slide 28: Business Strategy at KHD (2)

    Business Strategy at KHD (2) Strategy / Objectives Actions to be taken Improvement of • Reorganization at the headquarters in Germany in profitability Cologne • Organizational and procedural changes lead to leaner structures and greater efficiency • Reduction of structural costs due to significant s

  29. Slide 29: Focusing Sales Activities

    Focusing Sales Activities  Our initiatives to focus sales include important building blocks: • Intensification of customer care • Focus on tender activities on opportunities that match KHD • Better allocation of sales activities to relevant markets • Regular hosting of regional Technology Summits (

  30. Slide 30: Inauguration of new Workshop in India

    Inauguration of new Workshop in India  Inauguration of the new workshop in Faridabad/India with a total area of approximately 16,000 m2 in October 2018.  About 100 employees will be employed at the new site in the production and assembly of core components of KHD products (including roller presses

  31. Slide 31: Corporate Social Responsibility at KHD

    Corporate Social Responsibility at KHD KHD published group-wide sustainability report for the 2018 financial year (http://www.khd.com/csr-bericht.html) in April 2019.  Sustainability at KHD is embedded in the group-wide Code of Conduct.  Sustainability focuses on environmental aspects in technolog

  32. Slide 32: Reorganization of Humboldt Wedag GmbH

    Reorganization of Humboldt Wedag GmbH  The reorganization is embedded in an overall concept, which, in addition to a change of the organization, also includes a significant headcount reduction of 80 employees.  Creation of two lean, efficient operational organizational units:  Customer Service Ce

  33. Slide 33: Summary: Continuation of Business Strategy 2020

    Summary: Continuation of Business Strategy 2020  KHD is investing in its future despite a difficult market environment through product development.  KHD reduces costs and increases product quality by strengthening standardized engineering and expansion of its own manufacturing capacity in India. 

  34. Slide 34: Agenda

    Agenda Business Performance 2018 Financial Performance 2018 First Months (Jan. – April) of the Financial Year 2019 Outlook and Strategy Questions 34 Annual General Meeting – May 2019

  35. Slide 35: Questions

    Questions 35 Annual General Meeting – May 2019

  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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