Koenig & Bauer Ag · XETR:SKB
Koenig & Bauer — Shareholder Meeting (June 2011)
23 slides from Koenig & Bauer's shareholder meeting presentation, Jun 16, 2011
Slide 1: 86th Koenig & Bauer AG Annual General Meeting
86th Koenig & Bauer AG Annual General Meeting 16.06.2011 in Würzburg Helge Hansen President and CEO KBA Page 1
Slide 2: Situation at Koenig & Bauer AG
Situation at Koenig & Bauer AG Perceptible upswing in demand for sheetfed offset presses and niche products Modest market prospects, need for further consolidation in web press sector Substantial gains in order intake, sales and earnings in first quarter 2011 KBA Page 2
Slide 3: Faster, stronger revival in general engineering industry than in press engineering sector
Faster, stronger revival in general engineering industry than in press engineering sector 160 Engineering industry in general 140 120 100 Printing machinery 80 60 Deeper recession caused by structural and media shifts 40 20 0 2005 2006 2007 2008 2009 2010 KBA Source: VDMA, inflation-adjusted figure
Slide 4: Only moderate growth in printing-press market
Only moderate growth in printing-press market* Normal pre-crisis volume approx. €9bn p.a. Market volume in crisis year 2009 approx. €3.9bn Newspaper web Commercial web Sheetfed offset Flexo, gravure, other offset offset approx. €400m approx. €220m €2.6bn €700m Market volume in 2010 approx. €4.4bn Ne
Slide 5: KBA shares
KBA shares 01.01.2005 - 31.05.2011 DAX KBA shares KBA Page 5
Slide 6: Group performance in 2010
Group performance in 2010 Order intake Sales Order backlog 1.1. - 31.12. 1.1. - 31.12. 31.12.09/31.12.10 1,284.9 Sheetfed offset presses in €m (+45.4%) 1,179.1 Web and special presses 1,300 (+12.3%) 1,200 1,100 1,050.4 1,000 883.9 621.6 900 551.1 800 478.7 700 464.6 440.8 600 (+31.6%) 500 400 335.0
Slide 7: 12.3% sales growth in 2010 to €1.18bn
12.3% sales growth in 2010 to €1.18bn in €m 2.000 1.800 Web and special presses Sheetfed offset presses 1.600 1.400 1.200 1.000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 KBA Group figures from 2001 as per IFRS Page 7
Slide 8: Rise in export level to 88.5%
Rise in export level to 88.5% 2009 2010 Africa/ Germany Germany Latin America 15.5% 11.5% 12.1% Africa/ Latin America 20.6% Asia/Pacific Rest of Europe 22.5% 28.5% Rest of Europe 36% Asia/Pacific 29.4% North North America America 13.9 % 10% KBA Group figures as per IFRS Page 8
Slide 9: Web and special press division 2010
Web and special press division 2010 Sales approx. 10% higher than in previous year Weak demand for web presses impacted on earnings €m Sales €m Operating profit 900 200 750 150 600 628.0 450 100 571.7 300 50 150 31.8 14.0 0 0 2009 2010 2009 2010 KBA Group figures as per IFRS Page 9
Slide 10: Sheetfed offset division 2010
Sheetfed offset division 2010 Sales 15% higher than in previous year Higher sales and cost savings boosted earnings Sales Operating profit/loss €m €m 900 100 750 50 600 551.1 8.2 450 0 -23.1 478.7 300 -50 150 0 -100 2009 2010 2009 2010 KBA Group figures as per IFRS Page 10
Slide 11: Further growth in niche business
Further growth in niche business Subsidiaries’ niche business less affected by structural and media shifts Security printing, metal decorating, UV offset, industrial coding technology and air purification Metal decorating Early differentiation strategy paid dividends in the crisis Broad prod
Slide 12: Improved earnings in 2010
Improved earnings in 2010 2009 2010 Gross profit margin 20.8% 26.6% Operating profit +€8.7m +€22.2m Earnings before taxes +€2.7m +€15.3m Earnings after taxes +€6.6m +€12.5m Earnings per share +€0.41 +€0.76 KBA Group figures as per IFRS Page 12
Slide 13: Solid balance and strong financial profile
Solid balance and strong financial profile 31.12.2009 31.12.2010 Above-average equity ratio 39.6% 39.6% Fewer bank debts €48.3m €43.1m Big jump in liquid assets €76.1m €91m Comfortable level of net liquidity +€27.8m +€47.9m Higher free cash flow +€4.9m +€20.4m Ample cash credit lines aro
Slide 14: Diligent employees the key to our success
Diligent employees the key to our success High standard of training Four top regional rankings in qualifying exams Training level remains high at 6.5% KBA apprentices not offered permanent employment are highly prized in the labour market Core team of technicians, engineers, qualified sale
Slide 15: Ongoing investment
Ongoing investment Property, plant, equipment and IT the primary focus Current project: extension and technical upgrade for the foundry in Würzburg Production plants well equipped R&D spending represents well over 4% of sales KBA Page 15
Slide 16: Group performance to 31.03.2011
Group performance to 31.03.2011 Order intake Sales Order backlog 1.1. - 31.03. 1.1. - 31.03. on 31.12.10/31.03.11 in €m Sheetfed offset presses 619.6 700 Web and special presses (+40.6%) 600 432.1 178.2 500 440.8 (+37.4%) 400 314.4 141.5 162.7 253.3 300 (+20.7%) 110.9 209.8 200 441.4 85.8 126.0 290.
Slide 17: Group performance in first quarter 2011
Group performance in first quarter 2011 37.4% jump in order intake following brisk demand for sheetfed offset presses and niche products 20.7% higher sales compared to 2010 40% bigger order backlog Earnings in weaker first quarter much better than in previous year Strong cash flow, high ne
Slide 18: Successful Print China for KBA
Successful Print China for KBA Over 250 sheetfed offset printing units and two commercial web presses sold KBA focus on green printing well received China is growth market no. 1 for sheetfed offset presses KBA Page 18
Slide 19: Preliminary Group figures to 31.05.2011
Preliminary Group figures to 31.05.2011 Order intake Sales Order backlog 01.01. - 31.05. 01.01. - 31.05. 31.12.10/31.05.11 in €m 599.7 617.5 700 Sheetfed offset presses (+21.3 %) (+40.1%) 600 Web and special presses 494,4 423.0 500 218.0 264.3 (+27.0%) 440,8 400 226.4 333,0 162.7 300 209.0 146.0 200
Slide 20: KBA well positioned in print technology
KBA well positioned in print technology World’s second-largest press manufacturer Broad, highly advanced product portfolio Technological trailblazer No. 1 in newspaper press technology No. 1 in large-format sheetfed offset No. 1 in packaging offset, security printing and metal decorating
Slide 21: Group prognosis for 2011
Group prognosis for 2011 Single-digit increase in Group sales Moderate improvement in earnings Further adjustment at web press production plants to more muted market prospects Preparations in full swing for Drupa, the world’s biggest print media trade fair KBA Page 21
Slide 22: New business line: high-performance digital print
New business line: high-performance digital print Agreement with RR Donnelley to develop, manufacture and distribute own-brand digital presses Digital printing systems for multiple applications Primary target groups: mid-size to large-scale printing plants The first KBA digital printing syst
Slide 23: Koenig & Bauer AG
Koenig & Bauer AG Friedrich-Koenig-Str. 4 97080 Würzburg, Germany www.kba.com KBA Page 23