KBA financial press conference 15 November 2010 in Frankfurt · Digital printing is primarily...

KBA

KBA financial press conference

15 November 2010 in Frankfurt

KBA

Programme

Opening address

Helge Hansen, President and CEO, Koenig & Bauer AG

Current developments in the market and print media sector

Klaus Schmidt, Director Marketing and Corporate Communications, KBA Group

Consolidated financial accounts to 30 September

Helge Hansen

Outlook

Helge Hansen

Discussion

KBA

Current developments in the

market and print media sector

Klaus Schmidt, Director Marketing and Corporate Communications,

KBA Group

KBA

Moderate growth in global press market*

Market volume in crisis year 2009approx. €3.9bn

Web offsetNewspaperapprox. €400m

Web offsetCommercialapprox. €220m

Sheetfed offset

€2.6bn

Flexo, gravure, other

€700m

Market volume in 2010approx. €4.4bn

Web offsetNewspaperapprox. €420m

Web offsetCommercialapprox. €270m

Sheetfed offset

approx. €3bn

Flexo, gravure, other

€730m

Normal, pre-crisis level approx. €9bn p.a.

*excluding toner-based technologies and digital devices

KBA

Slide in new orders for printing presses

0

20

40

60

80

100

120

140

160

2003 2004 2005 2006 2007 2008 2009 2010

Total engineering sector

Printing machinery

Source: VDMA price-adjusted index values: sales in 2005 = 100

Deeper cuts in press technology attributableto structural and media changes

KBA

Structural changes in the print market

Internet, smart phones and iPad have

transformed media consumption

Advertising spend is migrating from print

Technological advances have reduced

volumes for traditional presses

Digital print is growing in some sectors

Consolidation is reducing the number of

printing plants in industrialised economies

The are more printing plants in emerging

economies

KBA

Dailynewspapers20.1

Television19.8

Frees10.7

Other24.9

Direct mail16.8

Popularmagazines7.7

Net advertising revenues in Germany

2009:share in %

Source: ZAW, 2010

Newspapers and television generate the highest revenues

KBA

Digital competition to offset

Digital printing is growing exceptionally fast from a relatively low base

Current share of print volume 12 - 15% (2/3 toner-based, 1/3 inkjet)

Inkjet printing has the best prospects (performance/flexibility)

Digital printing is primarily cost-effective for short runs and personalised

products (e.g. photo albums)

Obstacles to rapid expansion in traditional printing plants

- No economies of scale: product differentiation problematic

- Business model: press, consumables, service only available as costly

package

- Financing issues: technology ages fast, no second-hand market

Digital printing is gaining market share from offset in the market for short-run

and small- format jobs, but is not displacing it.

Parallel or hybrid offset/digital applications are on the increase.

KBA

Inkjet printing 2009 - 2015

Source: Pira 2010, The Future of Inkjet Printing to 2015

Market prospects by product

Inkjet printing’s greatest potential lies in business forms, large-formatdisplays, personalised advertising and books

It will play a minor role in the production of high-circulation newspapers,magazines, inserts and packaging for the foreseeable future

20,000

40,000

60,000

80,000

100,000

120,000

Trans-

actional/

-promo

Direct mail Commer-

cials

Signage Security Labels Newspapers Books Packaging

Pri

nt

vo

lum

e(m

illi

on

A4

)

2009 2015

KBA

Europe30.6%

North America30.8%

Asia30%

LatinAmerica5%

Europe26.9%

NorthAmerica27.2%

Asia35.1%

LatinAmerica6.6%

Strong gains in high-growth regions in

Asia (China, India, Indonesia, Malaysia)

and Latin America (Brazil)

Growth in less developed peripheral

regions in Europe (Poland, Balkans,

Turkey, Ukraine, Russia etc.), in the

Middle East and in Africa

Stagnation or decline in mature markets

(western Europe, North America, Japan,

Singapore, Australia)

2008:US$700bn

Source: PRIMIR/NPES, World Wide Market for PRINT 2009 - 2014 Update (4 August 2010)

2014:US$725bn

Rest of the world4.2%

Rest of the world3.6%

Global print market by region 2008-2014

KBA

KBA: second-largest press manufacturer

Broad product portfolio for volume and

niche markets has stabilising effect

Technological leader in certain sectors

(newspaper, sheetfed offset presses etc.)

No. 1 in newspaper presses ahead of

manroland

No. 2 in sheetfed offset behind Heidelberg

No. 3 in commercial web offset behind

manroland and Goss

No. 1 in large-format sheetfed offset

No. 1 in packaging offset, security and

metal-decorating presses

Strong position in green technology

KBA

Global market shares – sheetfed presses 2010

KBA17%

Heidelberg40%

Komori14%

OtherJapanesevendors

manroland12%

Chinesevendors

Sources: KBA, Heidelberg, internal market research and calculations, 10/2010

7%

10%

KBA

4.0

3.6

3.2

4.4

4.8

5.35.5

5

4.4

3.7

2.6

3.0

0

1

2

3

4

5

6

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

in€b

nMarket forecast – sheetfed offset presses 2013

3,8

€m

KBA

Market share – newspaper presses 2010*

*excluding Japan Sources: KBA, internal market research and calculations, 10/2010

KBA43%

Goss11%

Manugraph7%

TKS10%

manroland19%

Other10%

KBA

Market share – commercial web presses 2010*

*excluding Japan Sources: KBA, internal market research and calculations, 10/2010

KBA14%

Goss36%

Komori4%

manroland44%

Other2%

KBA

1100

900

730

1864

1562

2130

2358

1907

1677

1070

620690

0

500

1000

1500

2000

2500

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

inM

io.€Market forecast – web presses to 2013*

*Commercial and newspaper, excluding Japan

900850

€m

KBA

Consolidated financial accounts to 30 September

Helge Hansen, President and CEO, Koenig & Bauer AG

KBA

1,001.2

682.3

0

200

400

600

800

1000

1200

1.1.-30.9.2009 1.1.-30.9.2010

in€

mKBA: order intake up 46.7% on 2009

+46.7%

Consolidated figures as per IFRS

€m

KBA

772.1

737.3

0

200

400

600

800

1000

1.1.-30.9.2009 1.1.-30.9.2010

in€

mGroup sales 4.7% up on 2009

+4.7%


€m

KBA

Germany16.6%

Rest ofEurope34.8%

Africa/Latin America11.9%

Asia/Pacific23.5%

NorthAmerica13.2%


Germany12.2%

Rest ofEurope30.3%

Africa/Latin America21%

Asia/Pacific26.8%

NorthAmerica9.7%

Export level rises to 87.8%

Geographical breakdown of sales

2009 2010

KBA

564.1

446.5

0

100

200

300

400

500

600

700

30.9.2009 30.9.2010

in€

m26.3% bigger backlog improves capacity utilisation

+ 26.3%


€m

KBA

-35.2

-12.2

9.6

-21.3

-0.7

15.3

-40

-30

-20

-10

0

10

20

in€m

Substantial rise in pre-tax earnings

1st quarter

2009 20102nd quarter

2009 2010

2009 20103rd quarter


€m

KBA

11.6

9.5

0

5

10

15

1.1.-30.9.2009 1.1.-30.9.2010

in€

mPositive cash flow


Operativecash flow+€2.1m

€m

KBA

24.7

18.6

0

10

20

30

30.09.2009 30.09.2010

in%

High level of net liquidity


+€6.1m

%

KBA

37.3

34.4

0

10

20

30

40

50

30.09.2009 30.09.2010

in%

Above-average equity ratio


+2.9

%

KBA

KBA Group: realignment well advanced

Restructuring and realignment are well

advanced

Present Group payroll 6,437 (less 219

negotiated redundancies)

Training level 6.5%

Around 5% R&D investment

Innovative products and skilled personnel

are our competitive strengths

KBA

KBA product mix promotes stability

Dual focus on volume and niche markets

Diversification an asset during the crisis

Niche markets were a stable factor

Metal-decorating presses

Marking and coding devices

KBA

Outlook

Helge Hansen

KBA

Group prognosis for 2010

Increase in Group sales of around 7%

Substantial sales and profit contributions

from niche activities

Much higher pre-tax profit than in 2009

Prospect of dividend for 2010

2011: further rise in sales and earnings

KBA

Expansion into new lines of business

Innovative press technology remains

our core business

We shall continue to pursue new, high-

potential fields of operation

Screening potential projects is taking

longer than expected

Risks and rewards must be carefully

weighed

Solid Group finances mean we are under

no pressure of time; diligence is our

watchword

KBA

Koenig & Bauer AG

Friedrich-Koenig-Strasse 4

97080 Würzburg

Germany

www.kba.com

KBA financial press conference 15 November 2010 in Frankfurt · Digital printing is primarily...

Documents

Transcript of KBA financial press conference 15 November 2010 in Frankfurt · Digital printing is primarily...