Koenig & Bauer AG · XETR:SKB
Koenig & Bauer — Analysts' and financial press conference, 19 December 2013
25 slides from Koenig & Bauer's conference presentation, Dec 19, 2013
Slide 1: Analysts' and financial press conference
People & Print Analysts’ and financial press conference 19 December 2013 at KBA-MetalPrint in Stuttgart
Slide 2: KBA accelerates drastic Group restructuring
KBA accelerates drastic Group restructuring 1. Long-term strengthening of core business with consolidation - Market trend of substantial parts of today’s core business lines is assessed as stagnant - Securing of core business with structural adjustments to changing markets - Optimisation and concent
Slide 3: Structural changes have lasting impacts
Structural changes have lasting impacts ● Shift in advertising revenues against print resulting from changes in media habits ● Internet, smartphones and reading devices reduce print volume ● Digital printing is gaining market share from offset primarily in the book, direct mail, advertising sectors
Slide 4: Slump in demand for sheetfed and web offset
Slump in demand for sheetfed and web offset ● Global market volume down by more than 50% ● Previous volume no longer attainable given media shift – despite an annual growth in print volume worldwide of approx. 2% ● Enhanced productivity with higher performance presses and increased levels of automat
Slide 5: Market development of web and sheetfed offset presses
Market development of web and sheetfed offset presses Web offset press market in €m Sheetfed offset press market 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 2
Slide 6: Strategic realignment of the KBA Group
Strategic realignment of the KBA Group Restructuring of web press business for newspaper and Revised commercial printing Restructuring of manufacturing location sheetfed offset business concept, affecting 1,100 to 1,500 jobs Fit@all Long-term strengthening of future Strengthening development potenti
Slide 7: Fit@all: Restructuring of web press business
Fit@all: Restructuring of web press business New equipment and service business reconfiguration Over 40% market share in newspaper printing, Business model with minimal fixed but market has shrunk costs for higher flexibility significantly Profitable and growing service business Capacity and per
Slide 8: Fit@all: Restructuring sheetfed offset press business
Fit@all: Restructuring sheetfed offset press business Structural and process optimisation No. 2 in sheetfed offset with a global market Optimisation of product portfolio and share of approx. 20% sales network Technological frontrunner Market leader in large- format and folding Capacity and per
Slide 9: Fit@all: Revised manufacturing location concept
Fit@all: Revised manufacturing location concept Reduction and concentration of productive resources at the main locations High quality and flexibility when manufacturing core Shift from value-added activities with components personnel adjustments Reliable supply of time- critical parts Revised
Slide 10: Fit@all: Organisational restructuring
Fit@all: Organisational restructuring Establishment of autonomous units for sheetfed, web, manufacturing and special applications Allocation of subsidiaries according Reorganisation of to market focus management structure Establishment of clear Operative Group executive Board areas of responsibi
Slide 11: 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 12: 2013 and outlook
2013 and outlook ● Annual group sales of around €1.1bn expected, operating figures in the black at Group level before special influences ● Non-cash expenses for extraordinary depreciation in the mid-double-digit million euro range ● Additional provisions for capacity adjustments still effective in 2
Slide 13: KBA accelerates drastic restructuring of Group
KBA accelerates drastic restructuring of Group 1. Long-term strengthening of core business with consolidation - Market trend of substantial parts of today’s core business lines is assessed as stagnant - Securing of core business with structural adjustments to changing markets - Optimisation and conc
Slide 14: Portfolio expanded in future markets
Portfolio expanded in future markets Special solutions for packaging Banknote / Sheetfed Web Digital Metal / Marking Flexible Security Glass Coated Steel and Coding packaging Machinery Project System System Project Solutions Machinery Machinery business business business solution business business b
Slide 15: Above-average growth in digital printing
Above-average growth in digital printing ● Market share is expected to increase from 12% to 17% by 2015 ● High-volume digital presses are particularly popular in publication printing (due to personalisation, small runs), new options for newspaper printing (current market share: < 0.5%) ● However, of
Slide 16: New business line: inkjet digital printing
New business line: inkjet digital printing ● High-volume KBA RotaJET 76 digital press ● Direct entry into future market with an own product ● Digital flexibility with industrial performance and a high quality ● Focus on applications for books, direct mail, advertising and newspapers ● Interest also
Slide 17: Growth segment packaging printing
Growth segment packaging printing ● Internet is reducing print and advertising volumes in the newspaper, magazine and catalogue sectors ● The trend to reading devices, such as iPads and others, is responsible for the decline in book printing ● Packaging, film and label printing are classic growth ma
Slide 18: Global packaging volume: +25% by 2018
Global packaging volume: +25% by 2018 2018 $1,000bn +25% 2012 $800bn in $bn Worldwide Asia (without Middle East) & Oceania Western Europe © KBA Source: Smithers PIRA, 2013 18
Slide 19: Carton/corrugated board and plastics dominate
Carton/corrugated board and plastics dominate Carton/ © KBA Source: Smithers PIRA, 2013 19
Slide 20: 80% of the growth expected comes from Asia
80% of the growth expected comes from Asia 191.6 4.1% 105.2 Asia 150.9 72.1 66.1 8.8% Worldwide 144.3 6.9% China 8.8% India 0% Asia Japan Other 5.5% 11-17 CAGR Latin 3.4% America 3% Eastern Europe Annual consumption in millions of North 1.3% America tonnes of folding carton, corrugated board and fle
Slide 21: New business line: Flexible packaging
New business line: Flexible packaging ● Majority takeover of Italian press manufacturer Flexotecnica completed at the beginning of December ● Entry into previously not addresses growth market for flexible packaging materials (film) ● 100 employees, manufacturing outsourced to a large extent ● Pre-ta
Slide 22: New business line: direct decoration of hollow containers
New business line: direct decoration of hollow containers ● Majority acquisition of Kammann Maschinenbau at the beginning of September 2013 ● Entry into growth market for directly decorating luxury glass packaging and hollow containers ● Profitable global market leader in screen printing systems for
Slide 23: Market structure container printing
Market structure container printing With the acquisition of Kammann KBA entered the promising market for container printing presses². Market volume > €300m, glass containers and plastic bottles form own sub segment. Packaging Beverage Aerosol cans, alu Plastic Plastic Glass containers / cans tubes,
Slide 24: KBA: Summary
KBA: Summary 1. KBA is restructuring the Group proactively and consistently, its financial power enables the implementation of an extensive programme for the consolidation of the core business 2. Today’s existing solutions for niche markets, cutting-edge developments in digital printing technology a
Slide 25: People & Print Koenig & Bauer AG
People & Print Koenig & Bauer AG Friedrich-Koenig-Str. 4 97080 Würzburg www.kba.com
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