Khd Humboldt Wedag International Ag · XETR:KWG

Khd Humboldt Wedag International — Shareholder Meeting (May 2025)

39 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 23, 2025

  1. Slide 1: Annual General Meeting May 23, 2025

    Annual General Meeting May 23, 2025 KHD Humboldt Wedag International AG Shen, CEO | Luckas, CFO | Dr. Jochem, COO | Mersmann, CTO

  2. Slide 2: Address from KHD's Chief Financial Officer (1)

    Address from KHD‘s Chief Financial Officer (1) Green transformation of Consistent implementation the cement industry of our strategy. requires innovative products, technologies and services. Focus on research & Customers' development (€ 5.7 reluctance to invest million) to further expand leads to pe

  3. Slide 3: Address from KHD's Chief Financial Officer (2)

    Address from KHD‘s Chief Financial Officer (2)  Increasing the performance and competitiveness of all KHD companies remains a top priority.  Continued high liquidity and very good equity ratio (42%).  KHD again selectively increased its workforce in the 2024 financial year. 663 of a total of 944

  4. Slide 4: Address from KHD's Chief Financial Officer (3)

    Address from KHD‘s Chief Financial Officer (3)  Expansion of our position as the clear market leader in India.  The performance indicators from our (conservative) internal planning in terms of profitability and operating cash flow were clearly exceeded. • Good order execution led to a reduction in

  5. Slide 5: Management Board

    Management Board CEO CFO COO CTO Jianlong Shen Jürgen Luckas Dr. Matthias Jochem Matthias Mersmann  CEO since October 2020  Since 2006 with KHD  Since June 2019  Since February 2020  Since 2018 in executive  CFO since April 2015 back at KHD as MB as MB member back positions in AVIC Beijing’s m

  6. Slide 6: Agenda

    Agenda Business Performance 2024 First four Months (January – April) of the Financial Year 2025 Market Environment, Market Outlook and Project Status Strategy and Research & Development Questions 6 Annual General Meeting – May 2025

  7. Slide 7: Orders Intake and Order Backlog

    Orders Intake and Order Backlog  At € 175.4 million, order intake in the 2024 reporting year was below the previous year's figure.  The Capex segment achieved an order intake of € 125.6 million (previous year: € 157.5 million) and did not meet our expectations.  At € 49.8 million, order intake in

  8. Slide 8: Key figures at a Glance

    Key figures at a Glance (in € million) 2024 2023 Deviation Order intake 175.4 198.4 -23.0 Revenue 218.1 224.7 -6.6 Gross profit 44.0 32.0 12.0 * Adjustments: Gross profit margin 20.2% 14.2% 2024: none Adjusted EBIT* 10.4 2.3 8.1 2023: € 0.4 million Adjusted EBIT margin 4.8% 1.0% effect from deconsol

  9. Slide 9: Revenue

    Revenue  At € 218.1 million, revenue was slightly down on the previous year.  The largest share of revenue (€ 147.2 million, i.e. 67%) was generated by projects in India and neighboring countries.  At € 168.6 million, revenue in the Capex segment in the 2024 financial year was slightly above the

  10. Slide 10: Group Earnings

    Group Earnings  Reduction in the total estimated costs of some projects due to good project execution. The gross profit (€ 44.0 million; previous year: € 32.0 million) and the gross profit margin (20.2%; previous year: 14.2%) increased significantly compared to previous years.  Increase in structu

  11. Slide 11: Group Earnings - Sales Expenses and G&A Expenses

    Group Earnings - Sales Expenses and G&A Expenses  Sales Expenses 18 16 13.7 Sales expenses remained almost at the previous year's level. 14 12.2 12.1 12 10.6 9.4 9.6 KHD continues to invest actively in market development and 10 8 intensifying customer relationships. 6 4 KHD continues to focus on in

  12. Slide 12: Segment Earnings

    Segment Earnings Segment Capex Segment Plant Services  Revenue of € 168.6 million was slightly higher than in the  As expected, revenue of € 49.5 million was below the previous year (€ 167.5 million). previous year's figure (€ 57.2 million).  Thanks to good project execution, gross profit increas

  13. Slide 13: Key Figures at a Glance

    Key Figures at a Glance (in € million) Dec. 31, 2024 Dec. 31, 2023 Deviation Equity 107.5 95.0 12.5 Equity ratio 42.2% 40.0% Cash and term deposits 80.5 66.3 14.2 Intercompany loans 60.0 60.0 0.0 Net working capital * -32.1 -29.2 -2.9 Order backlog 176.4 219.5 -43.1 Employees 944 880 64 * Balance of

  14. Slide 14: Financial Position

    Financial Position  Total assets as at Dec. 31, 2024: € 255.1 million (previous year: € 237.5 million), of which Cash and Term Deposits 140  Bank balances and short-term deposits 120 € 80.5 million (previous year: € 66.3 million). 100  Loans to AVIC unchanged from the previous 80.5 80 68.0 65.3 6

  15. Slide 15: Employees

    Employees  944 employees at the end of 2024 (end of 2023: 880 employees) - Further targeted growth 1,200 1,045 880 944 1,000 30 737 791 22 At the end of 2024, 233 (previous 670 26 249 year: 171) industrial workers were 800 237 27 234 31 employed in the workshop in India 600 32 231 216 on the basis

  16. Slide 16: Agenda

    Agenda Business Performance 2024 First four Months (January – April) of the Financial Year 2025 Market Environment, Market Outlook and Project Status Strategy and Research & Development Questions 16 Annual General Meeting – May 2025

  17. Slide 17: Order Intake until April 2025

    Order Intake until April 2025 At € 24 million, order intake in the first four months were around € 47 million below the previous year's level:  € 8 million in the Capex segment.  In addition, projects totaling € 173 million have become effective and are already being executed (not yet booked as or

  18. Slide 18: Key Figures January to April 2025 (1)

    Key Figures January to April 2025 (1) Jan. - Apr. Jan. - Apr. (in € million) Deviation 2025 2024 Order intake 23.5 70.8 -47.3 Revenue 59.0 58.8 0.2 * Adjustments: Adjusted gross profit* 12.0 9.7 2.3 2025: none 2024: none Adjusted gross profit margin 20.3% 16.5% Adjusted EBIT * -0.1 -0.8 0.7 R&D expe

  19. Slide 19: Key Figures January to April 2025 (2)

    Key Figures January to April 2025 (2) (in € million) Apr. 30, 2025 Dec. 31, 2024 Deviation Equity 103.6 107.5 -3.9 Equity ratio 44.8% 42.2% Cash and term deposits 73.8 80.5 -6.7 Intercompany loans 60.0 60.0 0.0 Net working capital -29.1 -32.1 3.0 Order backlog 131.3 176.4 -45.1 Employees 961 944 17

  20. Slide 20: Agenda

    Agenda Business Performance 2024 First four Months (January – April) of the Financial Year 2025 Market Environment, Market Outlook and Project Status Strategy and Research & Development Questions 20 Annual General Meeting – May 2025

  21. Slide 21: Business Environment

    Business Environment  Ongoing geopolitical uncertainties and armed conflicts, the trade policies of the new US administration and ageing populations in many economies are overshadowing the priority of “net zero” programs and climate change mitigation, diverting public attention to matters perceived

  22. Slide 22: Outlook – Markets 2025

    Outlook – Markets 2025 Forecasted cement consumption 2025 according to  According to IA Cement, cement consumption is World Cement – IA Cement Ltd. (Status January 2025) only picking up again in certain markets (USA, Argentina, North Africa, Middle East and Ukraine). However, some of the underlying

  23. Slide 23: Project Status

    Project Status  Our starting point remains the avoidance of an unbalanced risk/margin ratio for projects.  Good project execution led to a reduction in the total estimated costs of some projects.  To further improve operational excellence, KHD is implementing an integrated tool for planning, cost

  24. Slide 24: Project Status - Highlights

    Project Status - Highlights  Ciments de'l Afrique S.A. has placed an order with  Gold Crest Cement Pvt. Ltd. has decided to award a AVIC/KHD for a clay calcining plant based on flash project for a complete plant with a capacity of calciner basis. 10,000 tons per day including the waste heat  The

  25. Slide 25: Future Order Intake

    Future Order Intake  KHD’s primary focus is on securing new orders through its continued strategic orientation with the following selling points: • "Cement beyond Carbon" - new technologies such as Clay Calcination, Pyrorotor® and Oxyfuel. • Expansion/entry into new, adjacent activities (WHRS busin

  26. Slide 26: Agenda

    Agenda Business Performance 2024 First four Months (January – April) of the Financial Year 2025 Market Environment, Market Outlook and Project Status Strategy and Research & Development Questions 26 Annual General Meeting – May 2025

  27. Slide 27: Strategy – Starting Point: Product Portfolio

    Strategy – Starting Point: 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. 27 Annual General Meeting – May 2025

  28. Slide 28: Strategy Implementation - Overview

    Strategy Implementation - Overview 1 Benefit from green 2 Go China / India 3 transition Improvement of market EPC “Cement beyond carbon” presence 3 x WHRS EPC technologies MENWA office in and Dubai, 1 x large EPC-M 1st clay calciner reorganization of under execution in reference under sales team Ind

  29. Slide 29: Strategy Implementation – Progress (Packages 1, 2)

    Strategy Implementation – Progress (Packages 1, 2) Strategy implementation is not a short-term task, and success will finally become visible through (profitable) new order intake and good gross profit margins in running projects. The implementation is generating first results: 1) Benefit from green

  30. Slide 30: Strategy Implementation – Progress (Packages 3, 4, 5)

    Strategy Implementation – Progress (Packages 3, 4, 5) 3) EPC (Engineering, Procurement, Construction) Three WHRS systems were booked as EPC orders in India and the construction sites are mobilized. A 10,000 tpd full cement plant was booked India which includes the EPC- management as a service. This

  31. Slide 31: Strategy Implementation – Highlight

    Strategy Implementation – Highlight The commercial project for clay calcination in Africa (order received in December 2024) represents an example for implementing several strategic targets altogether:  The main content of the order is clay calcination  “Benefit from green transition".  Manufactur

  32. Slide 32: Research & Development – Focus

    Research & Development – Focus The development of convincing concepts to drastically reduce CO2 emissions from cement plants remains of paramount importance for the future of the cement industry.  R&D budget for FY 2025 of € 5.3 million (increased to € 6.7 million in the 1st forecast).  Focus area

  33. Slide 33: R&D – Development of Products (short-term)

    R&D – Development of Products (short-term) Clay calciner (flash calciner)  Clay calcination avoids chemical CO2 and hereby reduces 2/3 of the CO2 emission of cement clinker from limestone.  KHD 1st order for a full-size flash calciner is under execution - available as reference in 2026 after commi

  34. Slide 34: R&D – Research for Technologies (mid- & long-term)

    R&D – Research for Technologies (mid- & long-term) Electrification of the cement production process Participation in EU funded ELECTRA program:  Plasma kiln burner  Focus on electrification of cement and quicklime production.  Enables KHD to participate in the development of low CO2 production pr

  35. Slide 35: R&D - Digitization

    R&D - Digitization KHD ProMax® – a digital, cloud-based twin of the cement plant  Basic platform: Operation data collection, visualization, storage and processing,  Module “Real-Time Optimizer” (RTO),  Module “Simulex” (training of operators),  Module “spare part ordering”. AI support for in-hou

  36. Slide 36: R&D – Investments in the Technology Center

    R&D – Investments in the Technology Center In the 2024 financial year, three investment projects were approved for our Technology Center, all of which are to be completed before the end of the 2025 financial year. Clay calciner test rig on a semi-industrial scale  Calcination of clay is a central c

  37. Slide 37: Agenda

    Agenda Business Performance 2024 First four Months (January – April) of the Financial Year 2025 Market Environment, Market Outlook and Project Status Strategy and Research & Development Questions 37 Annual General Meeting – May 2025

  38. Slide 38: Questions

    Questions 38 Annual General Meeting – May 2025

  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

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