Khd Humboldt Wedag International Ag · XETR:KWG
Khd Humboldt Wedag International — Shareholder Meeting (May 2022)
38 slides from Khd Humboldt Wedag International's shareholder meeting presentation, May 27, 2022
Slide 1: Annual General Meeting
Annual General Meeting May 27, 2022 KHD Humboldt Wedag International AG Shen, CEO | Luckas, CFO | Xing, EVP | Dr. Jochem, COO | Mersmann, CTO
Slide 2: Address from KHD's Chief Financial Officer (1)
Address from KHD’s Chief Financial Officer (1) ▪ The 2021 financial year saw increasing tendering activity. Thanks to our good customer loyalty and convincing solution concepts, KHD was able to achieve well above-average growth in order intake: ▪ In Capex orders (€ 178.5 million), KHD achieved well
Slide 3: Address from KHD's Chief Financial Officer (2)
Address from KHD’s Chief Financial Officer (2) ▪ Increasing our performance as well as competitiveness continues to enjoy top priority at KHD. ▪ We are sticking to our strategy: Orders where KHD can offer customers real added value take precedence over purely volume-driven growth. ▪ Our "Go China" i
Slide 4: Management Board
Management Board CEO CFO EVP COO CTO Jianlong Shen Jürgen Luckas Tao Xing Dr. Matthias Jochem Matthias Mersmann CEO since October 2020 Since 2006 with KHD Member of KHD’s MB Since June 2019 Since February 2020 Since 2018 in executive CFO since April 2015 in 2016 and since back at KHD a
Slide 5: Agenda
Agenda Business Performance 2021 First four months (January – April) of the Financial Year 2022 Project Status and Market Outlook Strategy and Research & Development Questions 5 Annual General Meeting – May 2022
Slide 6: Order Intake and Order Backlog
Order Intake and Order Backlog ▪ The strong order intake of € 231.7 million was significantly above the previous year’s figure (€ 102.1 million), in line with planning. The sales region of HW India made a very special contribution of 52% to the total order intake. ▪ The Capex segment achieved an ord
Slide 7: Key Figures at a Glance
Key Figures at a Glance (in € million) 2021 2020 Deviation Order intake 231.7 102.1 129.6 Revenue 226.3 151.2 75.1 Adjusted gross profit* 19.3 11.9 7.4 * Adjustments: Adjusted gross profit margin 8.5% 7.9% 2021: none Adjusted EBIT* -5.2 -12.5 7.3 2020: € 0.8 million idle capacity Adjusted EBIT margi
Slide 8: Revenue
Revenue ▪ The revenue target was achieved in full. ▪ Significant increase in revenue due to progress of projects in line with planning. Of total revenue, 44% were generated in North America and 35% in India and neighboring countries. ▪ At € 194.1 million, revenue in the Capex segment in FY 2021 was
Slide 9: Group Earnings
Group Earnings adjusted gross profit and GP margin ▪ At € 19.3 million, adjusted gross profit* was significantly higher than the previous year's figure of € 11.9 million. ▪ Unexpected cost overruns in the execution of some old projects prevented a significantly better margin. ▪ At € 48.4 million, st
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 relations. Increase in sales expenses due to higher number of customer inquiries. KHD continues to rely on intensive (targeted) sales activities in order
Slide 11: Segment Earnings
Segment Earnings Segment Capex Segment Plant Services ▪ Revenues of € 194.1 million were significantly ▪ Revenues of € 32.1 million above the previous higher than in the previous year (€ 125.4 million). year’s figure (€ 25.8 million). ▪ Gross profit of € 10.1 million (previous year: ▪ Gross profit w
Slide 12: Key Figures at a Glance
Key Figures at a Glance (in € million) Dec. 31, 2021 Dec. 31, 2020 Deviation Equity 90.7 89.1 1.6 Equity ratio 29.9% 34.4% Cash 65.3 68.0 -2.7 Intercompany loans 95.0 100.0 -5.0 Net working capital -37.5 -47.7 10.2 Order backlog 252.1 240.4 11.7 Employees 737 670 67 * Balance of current assets (less
Slide 13: Financial Position
Financial Position ▪ Total assets as of Dec. 31, 2021 amounted to Cash and Cash Equivalents € 303.7 million (previous year: € 258.9 million), 140 of which: 120 ▪ Cash and cash equivalents amounting to 100 84,1 82,6 € 65.3 million (previous year: € 68.0 million). 80 72,2 68,0 65,3 21,3 ▪ Loans to AVI
Slide 14: Employees
Employees ▪ 737 employees at the end of 2021 (end of 2020: 670 employees) – further targeted increase of capacities planned in India. 900 821 800 703 737 666 664 670 31 700 31 29 600 31 32 233 35 216 500 287 206 285 210 400 300 510 200 447 352 371 388 311 100 0 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2
Slide 15: Agenda
Agenda Business Performance 2021 First four months (January – April) of the Financial Year 2022 Project Status and Market Outlook Strategy and Research & Development Questions 15 Annual General Meeting – May 2022
Slide 16: Order Intake until April 2022
Order Intake until April 2022 Focus remains on real added value for our customers. Order intake of € 55 million in the first four months in line with our planning, but below previous year’s level: ▪ € 38 million in the Capex segment. ➢ In the Capex segment a number of promising projects are due to b
Slide 17: Key Figures January to April 2022 (1)
Key Figures January to April 2022 (1) Jan. - Apr. Jan. - Apr. (in € million) Deviation 2022 2021 Order intake 55.1 96.7 -41.6 Revenue 63.2 59.4 3.8 Adjusted gross profit * 7.7 5.8 1.9 * Adjustments: Adjusted gross profit margin 12.2% 9.8% 2022: none 2021: € 0.1 million idle capacity Adjusted EBIT *
Slide 18: Key Figures January to April 2022 (2)
Key Figures January to April 2022 (2) (in € million) Apr. 30, 2022 Dec. 31, 2021 Deviation Equity 92.4 90.7 1.7 Equity ratio 32.3% 29.9% Cash 72.4 65.3 7.1 Intercompany loans 95.0 95.0 0.0 Net working capital -44.1 -37.5 -6.6 Order backlog 255.4 252.1 3.3 Employees 763 737 26 Jan. - Apr. Jan. - Apr.
Slide 19: War in Ukraine
War in Ukraine ▪ KHD condemns military aggression and force. ▪ All KHD companies strictly comply with existing sanctions and restrictions. ▪ KHD makes a very clear distinction between Russian customers and employees in Russia on the one hand and the Russian government, military, and sanctioned perso
Slide 20: Impacts on KHD's Business in Russia
Impacts on KHD’s Business in Russia ▪ In general, the market for cement plants (including modernizations and expansions) in Russia is assessed as important and promising. ▪ KHD traditionally has a strong market position in Russia. However, investments by cement producers have been at a very low leve
Slide 21: KHD's Potential
KHD‘s Potential ▪ The 2021 financial year closed with positive earnings before taxes – despite adverse circumstances and significant additional costs from legacy projects. ▪ KHD has realized significant improvements in recent years: ▪ Improved performance and competitiveness ▪ No further projects wi
Slide 22: Agenda
Agenda Business Performance 2021 First four months (January – April) of the Financial Year 2022 Project Status and Market Outlook Strategy and Research & Development Questions 22 Annual General Meeting – May 2022
Slide 23: 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 24: Business Environment
Business Environment ▪ The COVID-19 pandemic and associated effects have not resulted in significant adverse impacts on KHD’s business in the current FY 2022. ▪ Travel restrictions (especially China) are still a challenge. ▪ Lockdowns in China, including the Shanghai port, are a concern, but did not
Slide 25: Project Status
Project Status ▪ Improvement in operational excellence and significantly less uncertainties in project execution ➢ Reliable cost estimation / good cost control ➢ Trouble projects have been brought to a final close ➢ Fast response/mitigation to project execution risks ▪ For new projects rising procur
Slide 26: Outlook – Cement Consumption 2022
Outlook – Cement Consumption 2022 ▪ Forecasted cement consumption in 2022 according to World Cement (status January 2022 – before war in Ukraine) 26 Annual General Meeting – May 2022
Slide 27: Outlook – Markets 2022 (1)
Outlook – Markets 2022 (1) ▪ According to IA Cement, global growth (excluding China) in 2022 cement consumption was expected at 4.0% (as of January 2022 before war in Ukraine). ▪ Customers’ investment projects are focused on projects with environmental aspects (emission reduction, CO2 reduction and
Slide 28: Outlook – Markets 2022 (2)
Outlook – Markets 2022 (2) ▪ Rising inflation has become a more severe effect and led to interest rate counter policies of central banks in USA, Europe and elsewhere. This has a negative impact on cement producers’ propensity to invest. ▪ The invasion of Russia into Ukraine has led to massive econom
Slide 29: Agenda
Agenda Business Performance 2021 First four months (January – April) of the Financial Year 2022 Project Status and Market Outlook Strategy and Research & Development Questions 29 Annual General Meeting – May 2022
Slide 30: Market Requirements change remarkably
Market Requirements change remarkably Digitization, Decarbonization and Chinese Efficiency Program will dictate market requirements » KHD will use these market requests as an opportunity » Benefit from / improve a technological leadership position as basis for appropriate pricing Market Pulls: » Chi
Slide 31: Product Strategy for a successful Future
Product Strategy for a successful Future suitable China products organization digital low carbon Innovation solutions products from parts to customer Service value bonding 31 Annual General Meeting – May 2022
Slide 32: Strategy – China
Strategy – China 1. The modernization of plant population is ordered by central government; over 1,000 brownfield and many greenfield projects will be awarded by 2025 2. KHD benefits from its excellent brand recognition 3. Close collaboration with AVIC 4. KHD’s organization and skills are adapted /
Slide 33: Strategy – Innovation
Strategy – Innovation 1. Improvement of existing product portfolio Reorganization of Center of Excellence to foster interdisciplinary cooperation of all engineering disciplines for better product quality 2. Development of a suitable low carbon technology portfolio - Identification of „KHD-fit“-techn
Slide 34: Strategy – Services
Strategy – Services 1. Increasing service business by selling value - Proprietary spare parts business is facing increasing competition from low-cost 3rd party suppliers (incl. piracy) - Clients continue converting fixed cost to variable cost (shifting responsibility to suppliers) - Inclusion of val
Slide 35: Action Focus in FY 2022
Action Focus in FY 2022 1. Increase market success in China - Roller Press as well as kiln upgrades (preheater and coolers) - PYROREDOX® and PYROROTOR® as leading-edge technologies 2. Increase effectiveness of R&D - Streamlining of R&D program with more focus on recognizable innovation - Stage/gate
Slide 36: Agenda
Agenda Business Performance 2021 First four months (January – April) of the Financial Year 2022 Project Status and Market Outlook Strategy and Research & Development Questions 36 Annual General Meeting – May 2022
Slide 37: Questions
Questions 37 Annual General Meeting – May 2022
Slide 38: 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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