Koenig & Bauer AG · XETR:SKB
Koenig & Bauer — Fourth German Corporate Conference 2015
22 slides from Koenig & Bauer's conference presentation, Sep 22, 2015
Slide 1: Koenig & Bauer AG at Fourth German Corporate Conference
People & Print Koenig & Bauer AG at Fourth German Corporate Conference September 22, 2015, Munich Mathias Dähn, CFO
Slide 2: Agenda
Agenda Company description Strategy & growth drivers H1 2015 & outlook © KBA Koenig & Bauer AG at Fourth German Corporate Conference, 22.09.2015 in Munich 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, flexible Annual revenue packaging and marking & coding >1 billi
Slide 4: Corporate Governance strengthened in all areas
Company description Corporate Governance strengthened in all areas • Zero tolerance for loss-makers • No cross-subsidies Core principles • Capital deployment in line with strategic targets and expected returns anchored • New segment reporting: Sheetfed, Digital & Web and Special • High operational t
Slide 5: Restructuring almost complete with significant upside in cost base
Company description Restructuring almost complete with significant upside in cost base • Major improvement in operating earnings in Q2 Visible restructuring • Q2 EBIT in Sheetfed up €13.3m year-over-year results • Digital & Web almost achieves turnaround in Q2 with EBIT of –€0.2m • Finish last restr
Slide 6: Media exposure reduced to <15% of revenue in new machine business
Company description Media exposure reduced to <15% of revenue in new machine business 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 -3-5% Revenue1) split Revenue1) split Grow
Slide 7: Agenda
Agenda Company description Strategy & growth drivers H1 2015 & outlook © KBA Koenig & Bauer AG at Fourth German Corporate Conference, 22.09.2015 in Munich 7
Slide 8: Strategy
Strategy & growth drivers Strategy • Harvest current market chances in Sheetfed Short term • Expand new applications and markets in packaging printing • Push industrial applications in digital web printing • Targeted expansion into international growth markets Mid • Increase of sales and margins in
Slide 9: Expand new applications and markets in packaging printing
Strategy & growth drivers Expand new applications and markets in packaging printing Flexible packaging Labels, tubes, glass/hollow containers • Large growth potential in flexible packaging • Accessing new packaging markets, by boosting KBA-Flexotecnica’s resources such as high-quality labels and lam
Slide 10: Push industrial applications in digital web printing
Strategy & growth drivers Push industrial applications in digital web printing Own KBA RotaJET platform Alliance with Hewlett Packard • Focus in digital printing on industrial • Digital printing cooperation with HP in applications (e.g. decorative printing) corrugated packaging segment • First inkje
Slide 11: 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 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 +4.1%
Slide 12: Agenda
Agenda Company description Strategy & growth drivers H1 2015 & outlook © KBA Koenig & Bauer AG at Fourth German Corporate Conference, 22.09.2015 in Munich 12
Slide 13: KBA Group performance
H1 2015 & outlook KBA Group performance • Continued very strong order intake, at +33.2% well above previous year • Sales below prior year due to more deliveries in H2, slight plus in sheetfed • Order backlog over €180m higher than at start of year Order Order 01.01. - 30.06. Revenue 01.01. - 30.06.
Slide 14: Earnings in KBA Group
H1 2015 & outlook Earnings in KBA Group • Positive Q2 EBT of €6.9m despite expectedly lower H1 sales with security presses • Substantial earnings improvement in Sheetfed and Digital & Web in Q2 • Stronger security press revenues in H2 • Incremental earnings improvement expected in Q3 and Q4 2013 201
Slide 15: Visible results of working capital management
H1 2015 & outlook Visible results of working capital management • Working capital cut by €100m in last twelve months • Customer prepayments up €24.8m due to good order intake Solid net liquidity • Cash flow reduced by €15m in outflows for staff cuts • High liquid assets of €191.6m • Further upside f
Slide 16: Sheetfed Solutions performance
H1 2015 & outlook Sheetfed Solutions performance • Strong order intake (+50% in Q2 y-o-y), high demand from packaging sector and Print China in April • 4.5% more sales in Q2 y-o-y • Q2 segment profit of +€6.5m, €13.3m above prior year (–€6.8m) • Further incremental earnings improvement by progress w
Slide 17: Digital & Web Solutions performance
H1 2015 & outlook Digital & Web Solutions performance • Order intake better than planned (+50% q-o-q, +100% in Q2 y-o-y) • Q2 sales far above Q1 • Turnaround almost achieved in Q2 with segment loss of –€0.2m • Restructuring of web business to new Digital & Web division shows initial success • Increm
Slide 18: Special Solutions performance
H1 2015 & outlook Special Solutions performance • 21% more orders for special machines with solid security press business • Prior-year sales and earnings above H1 2015 due to large orders of high-margin security presses • Security press business: large deliveries in Q4 Order 01.01. - 30.06. Revenue
Slide 19: Guidance for 2015 confirmed
H1 2015 & outlook Guidance for 2015 confirmed Annual Group sales > €1bn, thereof significantly more than 50% in H2 with higher revenue for special machines Restructuring finished in 2015 2015 Continuation of solid earnings improvement in Sheetfed Digital & Web quarterly turnaround in H2 expe
Slide 20: Mid-term target per segment: achieve robust margin level
H1 2015 & outlook Mid-term target per segment: achieve robust margin level Comprehensive +4% restructuring +4-6% Mid-term EBT target Peaks in security +2% printing business Sheetfed Solutions Digital & Web Solutions Special Solutions • Sheetfed offset presses, • Web offset presses, • Solutions for s
Slide 21: Financial calendar
Financial calendar 10/11/2015 Interim report on 3rd quarter 2015 24/03/2016 Annual report 2015 12/05/2016 Interim report on 1st quarter 2016 19/05/2016 AGM 11/08/2016 Interim report on 2nd quarter 2016 © KBA Koenig & Bauer AG at Fourth German Corporate Conference, 22.09.2015 in Munich 21
Slide 22: Koenig & Bauer AG www.kba.com
People & Print Koenig & Bauer AG www.kba.com
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