Koenig & Bauer Ag · XETR:SKB
Koenig & Bauer — 14th German Corporate Conference 2015
20 slides from Koenig & Bauer's conference presentation, Jan 20, 2015
Slide 1: Koenig & Bauer AG at 14th German Corporate Conference 2015
People & Print Koenig & Bauer AG at 14th German Corporate Conference 2015 January 20, 2015, Frankfurt Mathias Dähn, CFO
Slide 2: Agenda
Agenda Company description Strategy & growth drivers Q3 2014 & outlook © KBA Koenig & Bauer AG at 14th German Corporate Conference 2015 2
Slide 3: KBA at a glance
Company description KBA at a glance Key Facts • Leading supplier in packaging and security printing • No 1 in bank note printing, No 1 in cardboard printing and metal decorating Founded in 1817 • Attractive position in glass decorating and flexible Annual revenue packaging >1 billion EUR • Strong gl
Slide 4: Agenda
Agenda Company description Strategy & growth drivers Q3 2014 & outlook © KBA Koenig & Bauer AG at 14th German Corporate Conference 2015 4
Slide 5: Strategy
Strategy & growth drivers Strategy • Cut cost base through restructuring of web business and production footprint Short • Improve cash generation, strengthen financial power term • Implement strong corporate governance and transparent reporting (segments) • Accelerate portfolio transformation into g
Slide 6: Strategy – Short-term execution (1)
Strategy & growth drivers Strategy – Short-term execution (1) • 1,000+ jobs cut in 2014, 400 to be cut in 2015, 70% of cuts finalised Cut • ≈€100m in personnel expenses cut, with respective upside cost base • Full effect kicking in by 2016, incremental improvements starting 2015 • Web business now w
Slide 7: Strategy – Short-term execution (2)
Strategy & growth drivers Strategy – Short-term execution (2) • Strong working capital management initiated Improve cash • €70m cash released generation • Reduction of web prepayments overcompensated Incremental • Inventory levels with further upside through implementation of pull- cash principle in
Slide 8: Strategy – Short-term execution (3)
Strategy & growth drivers Strategy – Short-term execution (3) • Accountable management across all divisions • Clear targets and transparent reporting Implement • Zero tolerance for loss-makers strong corporate • No cross subsidisation governance • Capital deployment in line with strategic ambitious
Slide 9: Strategy – Mid-term growth & growth drivers
Strategy & growth drivers Strategy – Mid-term growth & growth drivers Expand portfolio into growth markets and attractive niches Security 10% CAGR 2014-18 25% ±1% Packaging 25% New applications CAGR 60% packaging, 2014-18 Media marking & coding, +4-6% (web and 65% security sheetfed) 15% CAGR 2014-18
Slide 10: Accelerate portfolio transformation into growth markets: digital web printing
Strategy & growth drivers Accelerate portfolio transformation into growth markets: digital web printing Own KBA RotaJET L platform Collaboration with Hewlett Packard • Direct entry into future market with an own • HP and KBA announced a partnership for product inkjet solutions for corrugated packagi
Slide 11: Accelerate portfolio transformation into growth markets: packaging
Strategy & growth drivers Accelerate portfolio transformation into growth markets: packaging Flexible packaging Glass/hollow container decoration • Takeover of Flexotecnica paved the way • Entry into the direct decoration of glass for KBA to enter the growth market for packaging and hollow container
Slide 12: Unlock potentials of installed base
Strategy & growth drivers Unlock potentials of installed base • Expansion of profitable service business with new offerings • Service managed as stand-alone business • Increasing potential due to ageing press structure, especially in web business • Common service strategy and approach to be deployed
Slide 13: Targeted expansion into selected international markets
Strategy & growth drivers Targeted expansion into selected international markets • Global packaging volume: CAGR +4% from 2013 to 2018; 80% of the growth expected comes from Asia • Unlock large potential in packaging segments with strong focus on future markets in Asia and Latin America Global 7.2 +
Slide 14: Mid-term strategy as per segment: achieve robust margin level
Strategy & growth drivers Mid-term strategy as per segment: achieve robust margin level Short + mid term +4% execution +4-6% Mid-term target Peaks in security +2% printing business Sheetfed Digital & Web Special • Sheetfed offset presses, • Web offset presses, • Solutions for security services, work
Slide 15: Agenda
Agenda Company description Strategy & growth drivers Q3 2014 & outlook © KBA Koenig & Bauer AG at 14th German Corporate Conference 2015 15
Slide 16: KBA Group performance to September 2014
Q3 2014 & outlook KBA Group performance to 30 September 2014 • Group sales on track with 8.5% increase in 9M 2014 y-o-y • In sheetfed KBA outperformed the industry trend with strong order intake in Q3 2014 • Delayed customer decisions for numerous bank note printing projects, web orders as expected
Slide 17: Clear improvement in earnings, solid financial structure
Q3 2014 & outlook Clear improvement in earnings, solid financial structure • Positive effects in 2014 through past cost savings, restructuring benefits with incremental ramp-up during 2015 • Strong cash generation in Q3 2014 despite cash outflows for staff cuts • Comfortable net liquidity • Strong f
Slide 18: Outlook for KBA Group
Q3 2014 & outlook Outlook for KBA Group Annual Group sales of €1bn to €1.1bn, at least a balanced EBT 2014 for the Group 2015 Incremental benefits from restructuring with direct impact on earnings Implementation of restructuring finished 2016 Further progress in portfolio transformation Su
Slide 19: Financial calendar
Q3 2014 & outlook Financial calendar 20/03/2015 Annual report 2014 12/05/2015 Interim report on 1st quarter 2015 21/05/2015 AGM in Würzburg 11/08/2015 Interim report on 2nd quarter 2015 10/11/2015 Interim report on 3rd quarter 2015 © KBA Koenig & Bauer AG at 14th German Corporate Conference 2015 19
Slide 20: Koenig & Bauer AG www.kba.com
People & Print Koenig & Bauer AG www.kba.com
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