Slide 1: Conference Call Q3 Results 2015
People & Print Conference Call Q3 Results 2015 10 November 2015 Claus Bolza-Schünemann, CEO Mathias Dähn, CFO
Slide 2: Agenda
Agenda Highlights Q3 2015 Business performance 9M 2015 Outlook and strategy © KBA Conference Call Q3 Results 2015 on 10 November 2015 2
Slide 3: Reshaping of KBA well on track
Highlights Q3 2015 Reshaping of KBA well on track • No cross-subsidies Corporate Governance • Zero tolerance for loss-makers changed • Capital deployment in line with strategic targets and expected returns • Sheetfed earnings strongly improved • Digital & Web completely restructured, substantial cos
Slide 4: Strategic focusing fine-tuned
Highlights Q3 2015 Strategic focusing fine-tuned • Gains in folding carton printing and Security flexible packaging 25% 20% • Market success in digital web printing Packaging for decors and laminates • Targeting new industrial applications in digital web printing 70% 60% • Digital printing cooperati
Slide 5: Agenda
Agenda Highlights Q3 2015 Business performance 9M 2015 Outlook and strategy © KBA Conference Call Q3 Results 2015 on 10 November 2015 5
Slide 6: KBA Group performance
Business performance 9M 2015 KBA Group performance • Good order intake even in the summer quarter, +29% in 9M y-o-y • Revenue below prior year due to high deliveries in Q4, slight plus in sheetfed • Strong order backlog of around €600m Order Order 01.01. - 30.09. Revenue 01.01. - 30.09. 31.12.14/30.
Slide 7: Earnings in KBA Group
Business performance 9M 2015 Earnings in KBA Group • 9M-EBT of €2.1m above prior year (€1.2m) due to cost cutting and despite lower revenue and profit share with security presses • Strong group EBT of +€12.9m in Q3 • Sheetfed makes significant earnings contributions by now • Further earnings improve
Slide 8: Group income statement
Business performance 9M 2015 Group income statement in €m 9M 2014 9M 2015 Revenue 791.8 679.7 Cost of sales -572.1 -498.6 Gross profit 219.7 181.1 Research and development costs -40.5 -42.6 Distribution costs -107.7 -91.4 Administrative expenses -57.9 -57.0 Other operating income ./. expenses -6.6 1
Slide 9: Improvement in working capital
Business performance 9M 2015 Improvement in working capital • Working capital substantially cut in the last twelve months, higher inventories in Q3 for deliveries in Q4 Solid net • Customer prepayments up €24.1m due to good order intake liquidity • Cash flow reduced by €25m in outflows for staff cut
Slide 10: Group cash flow statement
Business performance 9M 2015 Group cash flow statement in €m 9M 2014 9M 2015 Earnings before taxes 1.2 2.1 Non-cash transactions 25.6 22.0 Gross cash flow 26.8 24.1 Changes in inventories, receivables, other assets 71.3 -7.7 Changes in provisions and payables -65.2 -45.0 Cash flows from operating ac
Slide 11: Group balance sheet
Business performance 9M 2015 Group balance sheet in €m Assets 31.12.2014 30.09.2015 Equity and liabilities 31.12.2014 30.09.2015 Non-current assets Equity Intangible assets and Share capital 43.0 43.0 property, plant and equipment 228.7 222.6 Share premium 87.5 87.5 Investments/other financial recei
Slide 12: Sheetfed Solutions performance
Business performance 9M 2015 Sheetfed Solutions performance • Continued good order intake (+33% in 9M y-o-y), slight plus in revenue • Q3 segment profit of +€6.3m, €8.8m above prior year (–€2.5m) • Slightly lower margin in Q3 due to higher procurement costs given very high capacity utilisation and p
Slide 13: Digital & Web Solutions performance
Business performance 9M 2015 Digital & Web Solutions performance • Order intake better than planned, +47% in 9M y-o-y • Revenue below previous year due to low order backlog at the start of the year • Higher R&D costs for digital printing projects and lower service revenue in the summer quarter reduc
Slide 14: Special Solutions performance
Business performance 9M 2015 Special Solutions performance • 14% more orders for special machines • Gains especially in security printing and marking & coding • Good project pipeline in security printing/metal decorating, often lengthy order processes • Prior-year sales and earnings much higher due
Slide 15: Agenda
Agenda Highlights Q3 2015 Business performance 9M 2015 Outlook and strategy © KBA Conference Call Q3 Results 2015 on 10 November 2015 15
Slide 16: Guidance for 2015 and 2016
Outlook and strategy Guidance for 2015 and 2016 Revenue > €1bn with up to 2% EBT 2015 Strong earnings contribution from Sheetfed Digital & Web quarterly turnaround in Q4 expected Progress portfolio transformation into growth markets 2016 Sustained profits in all business fields Increase
Slide 17: Mid-term strategy per segment: achieve robust margin level
Outlook and strategy Mid-term strategy per segment: achieve robust margin level Comprehensive +4% restructuring +4-6% Mid-term EBT target Peaks in security +2% printing business Sheetfed Solutions Digital & Web Solutions Special Solutions • Sheetfed offset presses, • Web offset presses, • Solutions
Slide 18: Financial calendar
Financial calendar 24/03/2016 Annual report 2015 12/05/2016 Interim report on 1st quarter 2016 19/05/2016 AGM 11/08/2016 Interim report on 2nd quarter 2016 10/11/2016 Interim report on 3rd quarter 2016 © KBA Conference Call Q3 Results 2015 on 10 November 2015 18
Slide 19: Koenig & Bauer AG
People & Print Disclaimer: The projections contained in this presentation were founded on data available at the time of issue. While management believes them to be accurate, the impact of external factors beyond its control, such as changes in the economy, exchange rates and in our industry, may giv