Koenig & Bauer Ag · XETR:SKB
Koenig & Bauer — H1 2015 Earnings Presentation
21 slides from Koenig & Bauer's earnings presentation, Aug 11, 2015
Slide 1: Conference Call H1 Results 2015
People & Print Conference Call H1 Results 2015 11 August 2015 Claus Bolza-Schünemann, CEO Mathias Dähn, CFO
Slide 2: Agenda
Agenda Highlights Q2 2015 Business performance H1 2015 Outlook and strategy © KBA Conference Call H1 Results 2015 on 11 August 2015 2
Slide 3: New company structure supports Corporate Governance
Highlights Q2 2015 New company structure supports Corporate Governance • Zero tolerance for loss-makers • No cross-subsidies Core principles • Capital deployment in line with strategic targets and expected returns anchored • New segment reporting: Sheetfed, Digital & Web and Special • High operation
Slide 4: Restructuring project: further progress in Q2
Highlights Q2 2015 Restructuring project: further progress in Q2 • Major improvement in operating earnings in Q2 Visible restructuring • Q2 EBIT in Sheetfed up €13.3m year-over-year results • Digital & Web almost achieves turnaround in Q2 with EBIT of –€0.2m • Finish last restructuring measures by e
Slide 5: Portfolio transformation: further progress in Q2
Highlights Q2 2015 Portfolio transformation: further progress in Q2 • Gains in core packaging markets, such as folding carton, metal Security • Growth prospects in flexible packaging, 25% 20% glass and hollow containers as well as labels Packaging • Focus in digital printing on industrial applicatio
Slide 6: Agenda
Agenda Highlights Q2 2015 Business performance H1 2015 Outlook and strategy © KBA Conference Call H1 Results 2015 on 11 August 2015 6
Slide 7: KBA Group performance
Business performance H1 2015 KBA Group performance • Continued very strong order intake, at +33.2% well above previous year • Sales below prior year due to more deliveries in H2, slight plus in sheetfed • Order backlog over €180m higher than at start of year Order Order 01.01. - 30.06. Revenue 01.01
Slide 8: Earnings in KBA Group
Business performance H1 2015 Earnings in KBA Group • Positive Q2 EBT of €6.9m despite expectedly lower H1 sales with security presses • Substantial earnings improvement in Sheetfed and Digital & Web in Q2 • Stronger security press revenues in H2 • Incremental earnings improvement expected in Q3 and
Slide 9: Group income statement
Business performance H1 2015 Group income statement in €m H1 2014 H1 2015 Revenue 517.8 426.9 Cost of sales -376.4 -323.7 Gross profit 141.4 103.2 Research and development costs -27.1 -26.9 Distribution costs -66.5 -61.5 Administrative expenses -36.4 -37.9 Other operating income ./. expenses -7.6 14
Slide 10: Visible results of working capital management
Business performance H1 2015 Visible results of working capital management • Working capital cut by €100m in the last twelve months • Customer prepayments up €24.8m due to good order intake Solid net liquidity • Cash flow reduced by €15m in outflows for staff cuts • High liquid assets of €191.6m • F
Slide 11: Group cash flow statement
Business performance H1 2015 Group cash flow statement in €m H1 2014 H1 2015 Earnings before taxes -0.1 -10.8 Non-cash transactions 16.8 10.9 Gross cash flow 16.7 0.1 Changes in inventories, receivables, other assets 11.2 7.5 Changes in provisions and payables -61.6 -36.5 Cash flows from operating a
Slide 12: Group balance sheet
Business performance H1 2015 Group balance sheet in €m Assets 31.12.2014 30.06.2015 Equity and liabilities 31.12.2014 30.06.2015 Non-current assets Equity Intangible assets and Share capital 43.0 43.0 property, plant and equipment 228.7 224.8 Share premium 87.5 87.5 Investments/other financial recei
Slide 13: Sheetfed Solutions performance
Business performance H1 2015 Sheetfed Solutions performance • Strong order intake (+50% in Q2 y-o-y), high demand from packaging sector and Print China in April • 4.5% more sales in Q2 y-o-y • Q2 segment profit of +€6.5m, €13.3m above prior year (–€6.8m) • Further incremental earnings improvement by
Slide 14: Digital & Web Solutions performance
Business performance H1 2015 Digital & Web Solutions performance • Order intake better than planned (+50% q-o-q, +100% in Q2 y-o-y) • Q2 sales far above Q1 • Turnaround almost achieved in Q2 with segment loss of –€0.2m • Restructuring of web business to new Digital & Web division shows initial succe
Slide 15: Special Solutions performance
Business performance H1 2015 Special Solutions performance • 21% more orders for special machines with solid security press business • Prior-year sales and earnings above H1 2015 due to large orders of high-margin security presses • Security press business: large deliveries in Q4 Order 01.01. - 30.0
Slide 16: Agenda
Agenda Highlights Q2 2015 Business performance H1 2015 Outlook and strategy © KBA Conference Call H1 Results 2015 on 11 August 2015 16
Slide 17: Guidance for 2015 confirmed
Outlook and strategy Guidance for 2015 confirmed Annual Group sales > €1bn, thereof significantly more than 50% in H2 with higher revenue for special machines Restructuring finished in 2015 2015 Continuation of solid earnings improvement in Sheetfed Digital & Web quarterly turnaround in H2 e
Slide 18: Strategy
Outlook and strategy Strategy • Harvest current market chances in Sheetfed Short term • Expand new applications and markets in packaging printing • Push industrial applications in digital web printing • Targeted expansion into international growth markets Mid • Increase of sales and margins in servi
Slide 19: 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 20: Financial calendar
Financial calendar Berenberg and Goldman Sachs Fourth German 22/09/2015 Corporate Conference in Munich 10/11/2015 Interim report on 3rd quarter 2015 UniCredit and Kepler Cheuvreux 15th German 18/01/2016 Corporate Conference in Frankfurt 24/03/2016 Annual report 2015 12/05/2016 Interim report on 1st
Slide 21: 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