Koenig & Bauer AG · XETR:SKB

Koenig & Bauer — Analysts' and Press Conference at Drupa 2008

45 slides from Koenig & Bauer's conference presentation, Jun 10, 2008

1. Slide 1: Analysts' and Press Conference on 10 June 2008 at Drupa

   Analysts’ and Press Conference on 10 June 2008 at Drupa in Düsseldorf ©KBA Page 1

2. Slide 2: Programme

   Programme ¾ Opening address Albrecht Bolza-Schünemann, President and CEO, Koenig & Bauer AG ¾ Current market situation and KBA’s strategy Albrecht Bolza-Schünemann ¾ KBA at Drupa: strategy and solutions Klaus Schmidt, Director Marketing & Corporate Communications, KBA Group ¾ KBA at Drupa: performan

3. Slide 3: Current market situation and KBA's strategy

   Current market situation and KBA’s strategy Albrecht Bolza-Schünemann, President and CEO, KBA ©KBA Page 3

4. Slide 4: Global print market

   Global print market ¾ Packaging, labels, flyers, magazines expected to grow by 3-5% p.a. worldwide ¾ Circulations of daily newspapers will only grow in emerging markets with high populations (worldwide 2.6% in 2007) ¾ Market for media-dependent print products in developed markets approaching saturat

5. Slide 5: Market situation sheetfed offset presses before Drupa

   Market situation sheetfed offset presses before Drupa ¾ Weak demand in the USA ¾ Europe and the Far East relatively stable ¾ Brisk demand in Middle East ¾ Strong euro eroding European manufacturers’ competitiveness ¾ Financial crisis has had a noticeable impact in Europe (e.g. UK) ¾ Trend towards bi

6. Slide 6: KBA-Grafitec teams up with Adast

   KBA-Grafitec teams up with Adast Targeting growth in small and half-format ¾ Adast discontinues development and sales of its own products ¾ It will become a supplier of parts and subassemblies for KBA-Grafitec and other KBA enterprises ¾ Part of a necessary consolidation in small-format market ¾ Add

7. Slide 7: Newspaper and commercial web press market

   Newspaper and commercial web press market ¾ Continued slack demand in the USA ¾ Fewer projects in China since 2007 ¾ Demand picking up in Germany ¾ Demand in newspaper sector falling off following completion of conversion to multicolour print production ¾ Internet accelerating changes in the newspap

8. Slide 8: Special press market

   Special press market ¾ Security press sales and new orders below last year’s high level, but highly profitable ¾ Sales of and profit from metal decorating Banknote printing presses are on target ¾ KBA-Metronic on growth curve with UV offset and ID systems (inkjet etc.) ¾ Higher sales and a good prof

9. Slide 9: Diversification pays dividends

   Diversification pays dividends ¾ Withdrawal from the publication rotogravure market in September 2007 was well justified - overcapacity in gravure sector - poor prospects ¾ Presence in profitable niche markets will be stepped up ¾ We are always on the watch for suitable opportunities in the print se

10. Slide 10: Expansion into non-print activities possible

    Expansion into non-print activities possible ¾ Our Stuttgart subsidiary KBA-MetalPrint is a leading provider of air filtration systems ¾ We have a deep pool of expertise and patented innovations ¾ Expanding our environmental technologies is a possible option ¾ Other fields of engineering also offer

11. Slide 11: China: a high-growth market

    China: a high-growth market ©KBA Page 11

12. Slide 12: China: the print centre of the future

    China: the print centre of the future Chinese printing industry increase output by an average of 16% p. a. over the past five years 60000 in US$m 56770 49032 50000 42851 40000 35806 32877 30000 25961 23213 20000 10000 0 2001 2002 2003 2004 2005 2006 2010/2012 Prognosis ©KBA Source: All Print in Chin

13. Slide 13: Output by the Chinese printing industry in 2006

    Output by the Chinese printing industry in 2006 ¾ Packaging by far the biggest sector ¾ The volume of packaging increases with consumption Other Pre-press 11% 5% Books, magazines Export 21% 7% Forms, flyers 8% Newspapers Packaging 14% 34% ©KBA Source: The Printing Technology Association of China 200

14. Slide 14: Facts and figures on the Chinese printing industry

    Facts and figures on the Chinese printing industry ¾ Over 97,000 print enterprises (of which some 10,000 are printing plants) ¾ Around one-quarter are state-run operations ¾ A good 13% of output is generated by the top 100 ¾ Almost two-thirds of the top 100 print packaging, but books and magazines a

15. Slide 15: Strategy in China

    Strategy in China ¾ Sales of high-tech presses from Europe for premium markets such as packaging and books (KBA well positioned) ¾ All-round presses for smaller commercial and general printers (e.g. Rapida 105 and Rapida 75) ¾ Medium-term expansion, with Chinese partners, of local production facilit

16. Slide 16: KBA at Drupa: strategy and solutions

    KBA at Drupa: strategy and solutions Klaus Schmidt, Director Marketing and Corporate Communications, KBA Group ©KBA Page 16

17. Slide 17: Ten arguments in favour of KBA

    Drupa 2008: KBA’s message Ten arguments in favour of KBA ¾ Winning features in all formats from small to superlarge ¾ World makeready champion in B1 ¾ World market leader in large formats ¾ Number 1 packaging ¾ Pioneer in inline finishing ¾ KBA Complete – the total workflow ¾ Frontrunner in green te

18. Slide 18: Key messages in sheetfed offset

    Key messages in sheetfed offset Rapida 75 Rapida 105 Rapida 106 Rapida 142 (commercial) Rapida 162 (packaging) Waterless Alcohol-free ©KBA Page 18

19. Slide 19: Drupa news in sheetfed offset

    Drupa news in sheetfed offset ©KBA Page 19

20. Slide 20: Drupa 2008: sheetfed offset exhibits

    Drupa 2008: sheetfed offset exhibits Rapida 142 Performa 66-5 Rapida 75-5+C new Rapida 106 Rapida 105-5+C new Rapida 162 Rapida 106-8 perf. new Rapida 142-8 perf. new Rapida 162-6+C Conventional Waterless sheetfed offset Waterless Rapida 105 Rapida 74G-4+C 74 Karat +C Genius 52UV KBA Complete Perfor

21. Slide 21: Drupa 2008: Performa 66

    Drupa 2008: Performa 66 Performa 66: SRA2 for the price of SRA3 ¾ New design ¾ Semi-automatic plate changing ¾ Up to 5 printing units ¾ Optional inline coating ¾ Optional perfecting ¾ Optional ErgoTronic console ¾ Maximum output 10,000 sph ¾ Substrate range 0.04 - 0.45 mm ¾ Sheet format 485 x 660 mm

22. Slide 22: Drupa 2008: Rapida 75

    Drupa 2008: Rapida 75 Best value in its class: KBA Rapida 75 ¾ Up to 8 printing units + coater ¾ Max. 15,000 sph ¾ Standard format 530 x 750 mm ¾ Enlarged format 605 x 750 mm ¾ Impression-cylinder washing ¾ JDF-enabled console ¾ Perfecting from autumn 2008 ¾ Rapida 106 suction sidelays ¾ Rapida 105

23. Slide 23: Drupa 2008: Rapida 105

    Drupa 2008: Rapida 105 Best value in its class: KBA Rapida 105 ¾ New design, new features ¾ New Windows XP operating system ¾ Standard format 720 x 1,050 mm ¾ Option 740 x 1,050 mm ¾ Maximum output 15,000 sph (max.16,500 with HS package) ¾ Up to 7 printing units + coater ¾ Optional UV/hybrid capabil

24. Slide 24: Drupa 2008: Rapida 106

    Drupa 2008: Rapida 106 World makeready champion in B1: KBA Rapida 106 Our premium B1 product sporting a raft of unique features ¾ Max. 18,000 sph straight ¾ DriveTronic Ident pre-registration ¾ Max. 15,000 sph perfecting ¾ QualiTronic sheet inspection ¾ Up to 16 units (incl. coaters, dryers) ¾ Quali

25. Slide 25: Drupa 2008: Rapida 142

    Drupa 2008: Rapida 142 Drupa first from the market leader in large format: KBA Rapida 142 4 over 4 in large format now also available for commercial printers ¾ Optimised sheet guides with fewer, narrower corridors ¾ New perfector delivery for high-quality commercials ¾ Job-changing program ¾ QualiTr

26. Slide 26: Drupa 2008: Rapida 162

    Drupa 2008: Rapida 162 Added value from the no. 1 in packaging printing: KBA Rapida 162 New features for quality management and logistics ¾ Console link to pile turner ¾ Job-changing program ¾ QualiTronic sheet inspection ¾ QualiTronic Professional colour density measurement and control ¾ QualiTroni

27. Slide 27: Drupa 2008: conservation a major issue

    Drupa 2008: conservation a major issue Focal points ¾ Green, waterless print production, both conventional and UV ¾ All conventional presses on the KBA stand are alcohol-free ¾ Alliance with ClimatePartner to promote the options available for climate-neutral production ©KBA Page 27

28. Slide 28: What does KBA do for the environment?

    What does KBA do for the environment? ¾ Unique position in waterless, keyless offset ¾ 74 Karat (1997) – Cortina (2000) – Genius 52 (2002) – Rapida 74G (2004) ¾ First manufacturer to achieve eco- certification for a press (Rapida 105 at Drupa 2000) ¾ Eco-certification subsequently gained for all Rap

29. Slide 29: Drupa 2008: green printing

    Drupa 2008: green printing Genius 52UV Commander CT Cortina 6/2 •ClimatePartner •Wesso AG Rapida 74G 74 Karat ©KBA Page 29

30. Slide 30: KBA: pioneering green printing

    KBA: pioneering green printing Innovator in environmentally friendly waterless, keyless offset Genius 52UV coater press (sheet size 360x520mm) Compact Cortina newspaper press (4/1, 4/2, 6/2) Rapida 74G UV coater press (sheet size 520x740mm) 74 Karat DI offset press (sheet size 520x740mm) ©KBA Page 3

31. Slide 31: Drupa 2008: KBA Complete

    Drupa 2008: KBA Complete ©KBA Page 31

32. Slide 32: Drupa 2008: KBA Complete centre of operations

    Drupa 2008: KBA Complete centre of operations ¾ KBA Complete, a new consultancy for JDF workflows in pre-press (Kodak), press (KBA), post-press (MBO, Perfecta) and order handling with MIS and web-to-print (Hiflex) ¾ Services include print process management, e-business, warehouse optimisation ©KBA P

33. Slide 33: KBA at Drupa: the networked printshop

    KBA at Drupa: the networked printshop KBA Complete Sheetfed offset presses Post-press 1 KBA Complete workflow: JDF process integration 4 Rapida 105-5+C 11 Perfecta guillotine from pre-press to post-press 5 Rapida 106-8 perfector 12 MBO folding machine 2 CTP: Kodak Magnus 800 MCU platesetter 6 Rapida

34. Slide 34: Drupa news in web offset

    Drupa news in web offset ©KBA Page 34

35. Slide 35: KBA Competence: An innovative Compact platform

    KBA Competence® An innovative Compact platform The progressive approach The conventional approach KBA Cortina KBA Competence® KBA Commander CT 4 - 4.5 m of high tech Compact press, Compact press, new process familiar process Waterless offset Wet offset - no ink keys - ink keys - no dampener - dampen

36. Slide 36: Cortina reference installations

    Cortina reference installations Denmark Denmark Germany Netherlands Germany Netherlands Germany Belgium Germany France France Germany Switzerland Germany Germany A total of 14 presses (60 towers) sold ©KBA So far 9 presses (40 towers) in operation Page 36

37. Slide 37: Commander CT 6/2 configuration

    Commander CT 6/2 for Configuration : 15 printing towers Folders: 3 KF 7 jaw folders Production: 360 pp broadsheet, Automation: KBA PlateTronic 720 pp tabloid KBA NipTronic Reelstands: 15 KBA Pastomat KBA RollerTronic Start-up : Autumn 2009 ©KBA Page 37

38. Slide 38: Drupa 2008: commercial web offset

    Drupa 2008: commercial web offset ¾ No press demonstrations as in 2000 and 2004 ¾ New! KBA RollerTronic automated roller locks for high print quality, less maintenance ¾ Control console: online link to customer installations ¾ Demonstrations of KBA LogoTronic ¾ Demonstrations of remote maintenance ¾

39. Slide 39: After-sales service: KBA web shop

    After-sales service: KBA web shop Service activities are being expanded Spare-parts sourcing via the internet ¾ Web shop for spare parts ¾ Multilingual capabilities ¾ Customers can check on parts availability and price ¾ Previous orders can be used as template ¾ All orders are confirmed by e-mail ¾

40. Slide 40: After-sales service: KBA web shop

    After-sales service: KBA web shop Spare-parts sourcing via the internet ©KBA Page 40

41. Slide 41: KBA at Drupa: performance review

    KBA at Drupa: performance review Albrecht Bolza-Schünemann, President and CEO, KBA ©KBA Page 41

42. Slide 42: Packed house at the KBA stand

    Packed house at the KBA stand ©KBA Page 42

43. Slide 43: 2008: preliminary figures

    Drupa 2008: preliminary figures ¾ Attendance similar to last Drupa, but more trade professionals ¾ Sheetfed business brisk: figures well up on results in 2004, primarily for medium- and large-format presses ¾ Web business fair: - several commercial presses sold to Latin America, Denmark - further ma

44. Slide 44: 2008: conclusions drawn

    Drupa 2008: conclusions drawn ¾ Our banner, “Driving advances – together”, is well received ¾ There is widespread support for our drive to “bolster print’s strengths in the media arena” ¾ We must continue to promote standardised and green print production ¾ Our technological position is outstanding

45. Slide 45: Koenig & Bauer AG

    Koenig & Bauer AG Friedrich-Koenig-Str. 4 97080 Würzburg Germany www.kba.com ©KBA Page 45

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