Koenig & Bauer Ag · XETR:SKB
Koenig & Bauer — Shareholder Meeting (May 2014)
21 slides from Koenig & Bauer's shareholder meeting presentation, May 28, 2014
Slide 1: 89th Koenig & Bauer AG Annual General Meeting
People & Print 89th Koenig & Bauer AG Annual General Meeting 28.05.2014 in Würzburg Claus Bolza-Schünemann, President and CEO
Slide 2: KBA's current situation and goals
KBA’s current situation and goals • 2014 began more successfully for us than twelve months earlier • Our Fit@All programme will fundamentally realign the Group • Fit@All is making progress, agreements for 700 jobs have already been settled • Stronger focus on growth markets packaging and digital pri
Slide 3: Order intake in 2013
Order intake in 2013 • At €1,012.2m order intake was 9.3% below prior Drupa-year • Packaging printers dominated new orders for sheetfed presses • Subdued demand for web and special presses Sheetfed offset presses Web and special presses in €m 2012 2013 © KBA Group figures as per IFRS 3
Slide 4: Sales in 2013
Sales in 2013 • Group sales fell by 15% to €1,099.7m • Drupa stimulus was lacking in 2013 for sheetfed business • Significantly smaller business volume with web and special presses Sheetfed offset presses Web and special presses in €m 1.400 1,400 1.200 1,200 1,000 1.000 800 600 400 200 0 2012 2013 ©
Slide 5: Revenue by region in 2013
Revenue by region in 2013 Proportion of sales in % Germany Rest of Europe North America Asia/Pacific Africa/Latin America © KBA Group figures as per IFRS 5
Slide 6: Operating result 2013
Operating result 2013 • Operating profit of €24.5m displaced by special items • €155.2m special expenses for Fit@All programme • Operating loss of €130.7m due to special items, segments hit accordingly Sheetfed offset presses in €m Web and special presses 2012 2013 © KBA Group figures as per IFRS 6
Slide 7: Investments and acquisitions financed from cash flow
Investments and acquisitions financed from cash flow 31.12.2012 31.12.2013 Equity ratio reduced by restructuring 38.3% 25.3% Fewer €31.6m €21.5m bank debts Liquid assets €206.3m €185.4m at a high level Comfortable +€174.7m +€163.9m net liquidity Positive €61.2m €3.2m free cash flow Adequate approx.
Slide 8: Personnel developments
Personnel developments • Significantly less personnel in core business • More staff in growth fields • 266 new employees at Kammann and Flexotecnica • Group payroll totalled 6,409 at end of 2013 • Fit@All to cut 1,100 to 1,500 jobs • Arrangements agreed for some 700 employees • Progress in reducing
Slide 9: Strategic Realignment with Fit@All
People & Print Strategic Realignment with Fit@All
Slide 10: Market development of web and sheetfed offset presses
Market development of web and sheetfed offset presses New web offset presses in €m New sheetfed offset presses in €bn 2000 6 1900 5.5 5.3 1800 1700 5 5 1600 4.8 4.4 4.4 1400 4 3.7 1200 1100 1000 3 800 700 2.7 2.7 800 2.6 2.7 2.6 2.6 2.5 630 2 600 500 600 450 400 400 1 200 0 0 2006 2007 2008 2009 201
Slide 11: Fit@All: Key aspects of the realignment
Fit@All: Key aspects of the realignment Restructuring of web press business Group reorganisation New site concept, to autonomous personnel adjustments of business units 1,100 to 1,500 jobs Fit@All Long-term Reinforcing strengthening of presence in growth profitability and and special markets competi
Slide 12: Fit@All: Capacity and structural measures
Fit@All: Capacity and structural measures Adjusting capacity and optimising productive resources at the main sites New site concept for Würzburg, Radebeul, Mödling, Frankenthal, Dobruška Group-wide production unit with own High quality and flexibility responsibility for earnings when manufacturi
Slide 13: Fit@All: Organisational restructuring
Fit@All: Organisational restructuring Autonomous units for sheetfed, web, production and special machines Reorganisation of Group and management Operative units with own management structure and clear responsibility for earnings Establishment of clear areas of responsibility Holding company with
Slide 14: Fit@All: Expansion of growth areas
Fit@All: Expansion of growth areas • Takeover of Flexotecnica paved the way for KBA to enter the growth market for flexible packaging • Integration of KBA-Flexotecnica into the KBA Group’s global sales and service network • Synergy effects with other packaging activities • Entry into the direct deco
Slide 15: Fit@All: Supplementary package of measures
Fit@All: Supplementary package of measures Areas Key measures Reduction in administrative costs through personnel adjustments, Overhead costs process optimisation and outsourcing of auxiliary functions Working capital Reduction in tied assets, also non-current assets Locations Solution to some under
Slide 16: Fit@All: Current status of implementation
Fit@All: Current status of implementation Personnel adjustments Agreed to a large extent for Mödling, Würzburg and Radebeul, other locations Goal are still in negotiation Decentrally organised, New site concept for Group flexible and profitable KBA Drawn up and in implementation phase Group, able to
Slide 17: Current fiscal year 2014
People & Print Current fiscal year 2014
Slide 18: Group performance in the first quarter 2014
Group performance in the first quarter 2014 • 20.8% more new orders, sales up 11.9% • More orders for sheetfed and special presses • Demand for web offset presses remains subdued Order intake Sales Order backlog 01.01. - 31.03. 01.01. - 31.03. 31.03.13/31.03.14 Sheetfed offset presses in €m Web and
Slide 19: Earnings in 1st quarter 2014
Earnings in 1st quarter 2014 • Clear improvement to earnings compared to 2013 • Operating profit in sheetfed segment • Earnings of web and special presses segment hit by postponements of deliveries Q1 Q1 2013 2014 Gross profit margin 21.3% 25.4% Operating profit/loss -€16.9m -€10.2m Sheetfed offset
Slide 20: Outlook for KBA Group
Outlook for KBA Group 2014 • Annual Group sales of €1bn to €1.1bn • Positive operating result before special items • Much fewer expenses for Fit@All • EBT expected to be negative once again 2015 • Fit@All will come more strongly into effect • Clear improvement to operating and pre-tax earnings (EBT)
Slide 21: Koenig & Bauer AG
People & Print Koenig & Bauer AG Friedrich-Koenig-Str. 4 97080 Würzburg, Germany www.kba.com