Koenig & Bauer AG · XETR:SKB
Koenig & Bauer — 9M 2010 Earnings Presentation
31 slides from Koenig & Bauer's earnings presentation, Nov 15, 2010
Slide 1: KBA financial press conference
KBA financial press conference 15 November 2010 in Frankfurt KBA Page 1
Slide 2: Programme
Programme Opening address Helge Hansen, President and CEO, Koenig & Bauer AG Current developments in the market and print media sector Klaus Schmidt, Director Marketing and Corporate Communications, KBA Group Consolidated financial accounts to 30 September Helge Hansen Outlook Helge Hansen
Slide 3: 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 3
Slide 4: Moderate growth in global press market
Moderate growth in global press market* Normal, pre-crisis level approx. €9bn p.a. Market volume in crisis year 2009 approx. €3.9bn Web offset Web offset Sheetfed offset Flexo, gravure, other Newspaper Commercial approx. €400m approx. €220m €2.6bn €700m Market volume in 2010 approx. €4.4bn Web offse
Slide 5: Slide in new orders for printing presses
Slide in new orders for printing presses 160 Total engineering sector 140 120 100 Printing machinery 80 60 Deeper cuts in press technology attributable 40 to structural and media changes 20 0 2003 2004 2005 2006 2007 2008 2009 2010 KBA Source: VDMA price-adjusted index values: sales in 2005 = 100 P
Slide 6: Structural changes in the print market
Structural changes in the print market Internet, smart phones and iPad have transformed media consumption Advertising spend is migrating from print Technological advances have reduced volumes for traditional presses Digital print is growing in some sectors Consolidation is reducing the num
Slide 7: Net advertising revenues in Germany
Net advertising revenues in Germany Daily newspapers Other 20.1 24.9 2009: share in % Popular Television magazines 19.8 7.7 Frees 10.7 Direct mail 16.8 Newspapers and television generate the highest revenues KBA Source: ZAW, 2010 Page 7
Slide 8: Digital competition to offset
Digital competition to offset Digital printing is growing exceptionally fast from a relatively low base Current share of print volume 12 - 15% (2/3 toner-based, 1/3 inkjet) Inkjet printing has the best prospects (performance/flexibility) Digital printing is primarily cost-effective for short
Slide 9: Inkjet printing 2009 - 2015: Market prospects by product
Inkjet printing 2009 - 2015 Market prospects by product 120,000 Print volume (million A4) 100,000 80,000 60,000 40,000 20,000 Trans- Direct mail Commer- Signage Security Labels Newspapers Books Packaging actional/ cials -promo 2009 2015 Inkjet printing’s greatest potential lies in business forms,
Slide 10: Global print market by region 2008-2014
Global print market by region 2008-2014 Rest of the world 3.6% Strong gains in high-growth regions in Asia (China, India, Indonesia, Malaysia) Europe Asia 30.6% 30% and Latin America (Brazil) 2008: US$700bn Growth in less developed peripheral regions in Europe (Poland, Balkans, North America Lat
Slide 11: KBA: second-largest press manufacturer
KBA: second-largest press manufacturer Broad product portfolio for volume and niche markets has stabilising effect Technological leader in certain sectors (newspaper, sheetfed offset presses etc.) No. 1 in newspaper presses ahead of manroland No. 2 in sheetfed offset behind Heidelberg No.
Slide 12: Global market shares – sheetfed presses 2010
Global market shares – sheetfed presses 2010 Chinese vendors Other Japanese 10% KBA vendors 17% 7% Komori 14% Heidelberg 40% manroland 12% KBA Sources: KBA, Heidelberg, internal market research and calculations, 10/2010 Page 12
Slide 13: Market forecast – sheetfed offset presses 2013
Market forecast – sheetfed offset presses 2013 6 5.5 5.3 5 5 4.8 4.4 4.4 4 4.0 3,8 3.7 3.6 €m €bn 3 3.2 in 3.0 2.6 2 1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 KBA Page 13
Slide 14: Market share – newspaper presses 2010
Market share – newspaper presses 2010* Other 10% TKS 10% KBA 43% Manugraph 7% Goss 11% manroland 19% KBA *excluding Japan Sources: KBA, internal market research and calculations, 10/2010 Page 14
Slide 15: Market share – commercial web presses 2010
Market share – commercial web presses 2010* Komori Other 4% 2% KBA 14% Goss 36% manroland 44% KBA *excluding Japan Sources: KBA, internal market research and calculations, 10/2010 Page 15
Slide 16: Market forecast – web presses to 2013
Market forecast – web presses to 2013* 2500 2358 2130 2000 1907 1864 1677 1500 1562 Mio. € in€m 1100 1000 1070 900 900 850 690 730 620 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 KBA *Commercial and newspaper, excluding Japan Page 16
Slide 17: Consolidated financial accounts to 30 September
Consolidated financial accounts to 30 September Helge Hansen, President and CEO, Koenig & Bauer AG KBA Page 17
Slide 18: KBA: order intake up 46.7% on 2009
KBA: order intake up 46.7% on 2009 1200 1,001.2 1000 800 +46.7% 682.3 in €m 600 €m 400 200 0 1.1.-30.9.2009 1.1.-30.9.2010 KBA Consolidated figures as per IFRS Page 18
Slide 19: Group sales 4.7% up on 2009
Group sales 4.7% up on 2009 1000 772.1 800 737.3 +4.7% 600 in €m €m 400 200 0 1.1.-30.9.2009 1.1.-30.9.2010 KBA Consolidated figures as per IFRS Page 19
Slide 20: Export level rises to 87.8%
Export level rises to 87.8% Geographical breakdown of sales 2009 2010 Africa/ Latin America Germany 11.9% Germany 12.2% 16.6% Africa/ Latin America 21% Asia/Pacific Rest of 23.5% Europe 30.3% Rest of Europe Asia/Pacific 34.8% 26.8% North America 13.2% North America 9.7% KBA Consolidated figures as
Slide 21: 26.3% bigger backlog improves capacity utilisation
26.3% bigger backlog improves capacity utilisation 700 564.1 600 + 26.3% 500 446.5 400 in €m €m 300 200 100 0 30.9.2009 30.9.2010 KBA Consolidated figures as per IFRS Page 21
Slide 22: Substantial rise in pre-tax earnings
Substantial rise in pre-tax earnings 20 15.3 9.6 10 1st quarter 2nd quarter 2009 2010 2009 2010 0 2009 2010 -0.7 3rd quarter in €m €m -10 -12.2 -20 -21.3 -30 -35.2 -40 KBA Consolidated figures as per IFRS Page 22
Slide 23: Positive cash flow
Positive cash flow 15 11.6 Operative 9.5 cash flow 10 +€2.1m in €m €m 5 0 1.1.-30.9.2009 1.1.-30.9.2010 KBA Consolidated figures as per IFRS Page 23
Slide 24: High level of net liquidity
High level of net liquidity 30 24.7 18.6 20 +€6.1m in % % 10 0 30.09.2009 30.09.2010 KBA Consolidated figures as per IFRS Page 24
Slide 25: Above-average equity ratio
Above-average equity ratio 50 37.3 40 34.4 +2.9 30 in % % 20 10 0 30.09.2009 30.09.2010 KBA Consolidated figures as per IFRS Page 25
Slide 26: KBA Group: realignment well advanced
KBA Group: realignment well advanced Restructuring and realignment are well advanced Present Group payroll 6,437 (less 219 negotiated redundancies) Training level 6.5% Around 5% R&D investment Innovative products and skilled personnel are our competitive strengths KBA Page 26
Slide 27: KBA product mix promotes stability
KBA product mix promotes stability Dual focus on volume and niche markets Diversification an asset during the crisis Niche markets were a stable factor Metal-decorating presses Marking and coding devices KBA Page 27
Slide 28: Outlook
Outlook Helge Hansen KBA Page 28
Slide 29: Group prognosis for 2010
Group prognosis for 2010 Increase in Group sales of around 7% Substantial sales and profit contributions from niche activities Much higher pre-tax profit than in 2009 Prospect of dividend for 2010 2011: further rise in sales and earnings KBA Page 29
Slide 30: Expansion into new lines of business
Expansion into new lines of business Innovative press technology remains our core business We shall continue to pursue new, high- potential fields of operation Screening potential projects is taking longer than expected Risks and rewards must be carefully weighed Solid Group finances mean
Slide 31: Koenig & Bauer AG
Koenig & Bauer AG Friedrich-Koenig-Strasse 4 97080 Würzburg Germany www.kba.com KBA Page 31