Khd Humboldt Wedag International Ag · XETR:KWG
Khd Humboldt Wedag International — Shareholder Meeting (May 2024)
41 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 24, 2024
Slide 1: Annual General Meeting May 24, 2024
Annual General Meeting May 24, 2024 KHD Humboldt Wedag International AG Shen, CEO | Luckas, CFO | Dr. Jochem, COO | Mersmann, CTO
Slide 2: Address from KHD's Chief Financial Officer (1)
Address from KHD‘s Chief Financial Officer (1) ▪ The most important key figures from the corporate planning were achieved or exceeded in the 2023 financial year! ▪ The KHD Group achieved a positive operating result for the first time since the 2013 financial year. ▪ Expansion of our position as mark
Slide 3: Address from KHD's Chief Financial Officer (2)
Address from KHD‘s Chief Financial Officer (2) Large Chinese plant engineering companies Progress in the are fueling cut-throat implementation of competition in our strategy. international markets with an aggressive pricing policy. Climate neutrality is an indispensable goal for Continuous growth ce
Slide 4: Management Board
Management Board CEO CFO COO CTO Jianlong Shen Jürgen Luckas Dr. Matthias Jochem Matthias Mersmann CEO since October 2020 Since 2006 with KHD Since June 2019 Since February 2020 Since 2018 in executive CFO since April 2015 back at KHD as MB as MB member back positions in AVIC Beijing’s m
Slide 5: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 5 Annual General Meeting – May 2024
Slide 6: Order Intake and Order Backlog
Order Intake and Order Backlog ▪ As expected, the order intake achieved in the year 2023 was below prior year’s number. ▪ The sales region of HW India made a particularly large contribution to order intake, accounting for 68% of the total. ▪ The Capex segment achieved an order intake of € 157.5 mill
Slide 7: Key Figures at a Glance
Key Figures at a Glance (in € million) 2023 2022 Deviation Order intake 198.4 218.6 -20.2 Revenue 224.7 210.4 14.3 Gross profit 32.0 27.6 4.4 * Adjustments: Gross profit margin 14.2% 13.1% 2023: € 0.4 million Adjusted EBIT* 2.3 -0.9 3.2 deconsolidation result 2022: € 1.6 million impairment of Adjust
Slide 8: Revenue
Revenue ▪ As expected, revenues are slightly above previous year’s level. ▪ More than half (approx. 53%) of the revenues were generated in India and neighboring countries. ▪ At € 167.5 million, revenues in the Capex segment slightly exceed previous year’s figure (€ 163.6 million), in line with our o
Slide 9: Group Earnings
Group Earnings ▪ Gross profit (€ 32.0 million; previous year: € 27.6 million) as well as gross profit margin (14.2%; previous year: 13.1%) improved again compared to last year's figures. ▪ Moderate increase in structural costs from € 57.2 million to € 58.2 million (incl. € 0.5 million higher personn
Slide 10: Group Earnings – Sales Expenses and G&A Expenses
Group Earnings – Sales Expenses and G&A Expenses ▪ Sales Expenses KHD continues to invest actively in market development and intensifying customer relationships. Higher tendering costs resulted in an increase in sales expenses for intensified activities in markets. KHD continues to focus on intensiv
Slide 11: Segment Earnings
Segment Earnings Segment Capex Segment Plant Services ▪ As expected, revenue of € 167.5 million was slightly ▪ Revenues of € 57.2 million were significantly higher than exceeding the previous year’s figure in the previous year (€ 46.8 million). (€ 163.6 million). ▪ As a result, gross profit increase
Slide 12: Key Figures at a Glance
Key Figures at a Glance (in € million) Dec. 31, 2023 Dec. 31, 2022 Deviation Equity 95.0 92.4 2.6 Equity ratio 40.0% 36.4% Cash and term deposits 66.3 52.0 14.3 Intercompany loans 60.0 85.0 -25.0 Net working capital * -29.2 -16.6 -12.6 Order backlog 219.5 254.6 -35.1 Employees 880 791 89 * Balance o
Slide 13: Financial Position
Financial Position ▪ Total assets as of Dec. 31, 2023 amounted to € 237.5 million (previous year: € 254.0 million), Cash and Term Deposits of which: 140 ▪ Cash and cash equivalents and term 120 deposits amounting to € 66.3 million 100 (previous year: € 52.0 million). 82,6 80 68,0 66,3 ▪ Loans to AVI
Slide 14: Employees
Employees ▪ 880 employees at the end of 2023 (end of 2022: 791 employees) – Further targeted growth Due to the deconsolidation of the Russian subsidiary in FY 2023, 17 persons are no longer included. ➢ The workforce in Germany is particularly important for securing and expanding our technological co
Slide 15: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 15 Annual General Meeting – May 2024
Slide 16: Order Intake until April 2024
Order Intake until April 2024 Order intake of € 71 million in the first four months is approx. € 30 million above previous year’s level: ▪ € 54 million in the Capex segment. ➢ Additional letters of intent have been signed. ➢ Very good order intake from India. ▪ € 17 million in the Plant Services seg
Slide 17: Key Figures January to April 2024 (1)
Key Figures January to April 2024 (1) Jan. - Apr. Jan. - Apr. (in € million) Deviation 2024 2023 Order intake 70.8 40.3 30.5 Revenue 58.8 69.9 -11.1 Adjusted gross profit* 9.7 10.6 -0.9 * Adjustments: 2024: none Adjusted gross profit margin 16.5% 15.2% 2023: none Adjusted EBIT * -0.8 0.0 -0.8 Adjust
Slide 18: Key Figures January to April 2024 (2)
Key Figures January to April 2024 (2) (in € million) Apr. 30, 2024 Dec. 31, 2023 Deviation Equity 96.6 95.0 1.6 Equity ratio 40.2% 40.0% Cash and term deposits 56.1 66.3 -10.2 Intercompany loans 60.0 60.0 0.0 Net working capital -18.4 -29.2 10.8 Order backlog 236.5 219.5 17.0 Employees 914 880 34 Ja
Slide 19: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 19 Annual General Meeting – May 2024
Slide 20: Sustainability / ESG
Sustainability / ESG ... Environment – Social – Governance Climate change, carbon emissions, ENVIRONMENTAL RESPONSIBILITY natural resources, pollution & waste, Sustainability/ ESG environmental opportunities Human capital & development, health & SOCIAL RESPONSIBILITY safety, supply chain labor stand
Slide 21: CSRD: KHD will be compliant with reporting requirements from FY 2024
CSRD: KHD will be compliant with reporting requirements from FY 2024 onwards • CSRD Milestones/ targets of our ESG roadmap: is part of the management agenda ➢ ESG Risk Management & Internal Control System (one of the top priorities) ➢ CSRD compliance readiness • Dedicated ESG function for KHD Group
Slide 22: EU Taxonomy
EU Taxonomy Further information can be found in the Non-financial Group Report. 22 Annual General Meeting – May 2024
Slide 23: EU Taxonomy eligible products / solutions
EU Taxonomy eligible products / solutions Pyrofloor2® Pyrorotor® Roller Press Oxyfuel Cyclones / Preheater KHD ProMax® Pyroredox® 23 Annual General Meeting – May 2024
Slide 24: Vision, Mission and Company Values
Vision, Mission and Company Values Our vision: Our 6 Company Values: Cement beyond Carbon Innovation Our missions: Teamwork Constant Improvement Integrity Accountability Diversity 24 Annual General Meeting – May 2024
Slide 25: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 25 Annual General Meeting – May 2024
Slide 26: Project Status
Project Status ▪ The largest EP project in KHD’s history (Mitchell, Indiana/USA) is in commercial operation. Heidelberg Materials signed the substantial completion certificate in July 2023. ▪ Problematic projects have been fully finalized (incl. successful termination of litigation) – no unplanned c
Slide 27: Business Environment
Business Environment ▪ The trends observed in FY 2023 have continued and accelerated in FY 2024. ▪ The price pressure from Chinese competitors in EPC new build projects has sharpened and is dominating almost all projects globally, with exemption of India and USA only. ▪ The “Net Zero” strategies of
Slide 28: New Reality - Net Zero Strategies are Implemented
New Reality - Net Zero Strategies are Implemented ▪ CO2 emission allowance prices under the EU and UK trading system ETS and the expectations of institutional investors are major drivers for the strategies of large, publicly listed cement producers. • At current values of € 65 per ton CO2 (after see
Slide 29: Outlook – Cement Consumption 2024
Outlook – Cement Consumption 2024 ▪ Forecasted cement consumption in 2024 according to World Cement – IA Cement Ltd. (status January 2024) 29 Annual General Meeting – May 2024
Slide 30: Outlook – Markets 2024
Outlook – Markets 2024 ▪ According to IA Cement, growth in 2024 cement consumption is slightly picking up in formerly stagnating markets (USA, Canada, Brazil, Russia, Australia). ▪ As an exemption, the strong market in India further continues to be driven by rising cement consumption and the resulti
Slide 31: Future Order Intake
Future Order Intake ▪ KHD’s primary focus is on securing new orders, preferably connected to our “Cement beyond Carbon” technologies through the following selling points: » Marketing KHD’s solutions / new technologies like Oxyfuel, Clay Calcination and Pyrorotor®. » Entering new adjacent activities
Slide 32: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 32 Annual General Meeting – May 2024
Slide 33: Six Action Packages for Strategy Implementation
Six Action Packages for Strategy Implementation Benefit from green Go China / India and EPC transition improvement of • Capabilities • Solutions for market presence • Model decarbonization • Strategic partnerships • Energy efficiency • Reduction of emissions Expansion of service Cost competitiveness
Slide 34: Progress in Strategy Implementation
Progress in Strategy Implementation Strategy implementation is not a short-term task and the success will finally become visible by (profitable) new order intake and good gross profit margins in running projects. ▪ Update on some important aspects: » For each of the action packages a dedicated task
Slide 35: Product Portfolio
Product Portfolio ▪ Over 160 years of experience in the cement industry. ▪ We offer the full line of equipment and engineered solutions for cement plants, including individual machines, spare parts, and associated plant services.
Slide 36: Research & Development – New Technologies
Research & Development – New Technologies Convincing concepts for drastically reducing the CO2 emissions of cement plants remain tremendously important for the future of the cement industry. In addition to the traditional concepts of energy efficiency and the substitution of clinker by slag and fly
Slide 37: Two major Objectives for KHD's R&D
Two major Objectives for KHD’s R&D 1. Develop / improve technologies and products for the transformation of the cement industry » Calcined Clay » Oxyfuel technologies » Kiln plants for low-cost carbon capture Flash » Electrified kiln processes Calciner » Novel grinding machines for low-cost grinding
Slide 38: Achievements of recent R&D Activities
Achievements of recent R&D Activities » 16 Pyrorotor® sold – interest still increasing worldwide. » First KHD ProMax® RTO installation commissioned – further projects under negotiation. » Participation in major EU funded R&D-projects ACCSESS and ELECTRA for the development of optimized plants for th
Slide 39: Agenda
Agenda Business Performance 2023 First four months (January – April) of the Financial Year 2024 Sustainability Project Status and Market Outlook Strategy and Research & Development Questions 39 Annual General Meeting – May 2024
Slide 40: Questions
Questions 40 Annual General Meeting – May 2024
Slide 41: Disclaimer for Forward-Looking Information
Disclaimer for Forward-Looking Information This document contains statements which are, or may be deemed to be, "forward-looking statements" which are prospective in nature. Forward- looking statements are not based on historical facts, but rather on current expectations and projections about future
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