Koenig & Bauer Preliminary figures 2020 - Dr. Andreas Pleßke, CEO | Dr. Stephen Kimmich, CFO 26 February 2021, Würzburg
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Koenig & Bauer
Preliminary figures 2020
Dr. Andreas Pleßke, CEO | Dr. Stephen Kimmich, CFO
26 February 2021, Würzburg
1 26/02/2021Koenig & Bauer at a glance.
1. • Further improvement in operating result achieved in Q4.
Business performance at a glance. • Order intake significantly better than industry average.
• Business performance still affected by travel restrictions.
2. • With an annual turnover of €1,029m and
Preliminary figures 2020*. an EBIT before special effects of -€19m,
the forecast for 2020 was clearly exceeded.
3. • Retrospective application leads to increase in year-on-year
New revenue recognition policy. transparency. The new policy reduces volatility in revenue reporting
and enables more balanced planning.
4. • Initial measures, e.g. to increase productivity, in purchasing and in
Efficiency programme P24x. service, were successfully implemented in Q4.
• Negotiations with employee representatives successfully started.
5. • Fundamentally intact end markets with different growth opportunities.
Market outlook & forecast. • Forecast 2021: +4% turnover, balanced EBIT; medium-term targets
confirmed.
2 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Business performance at a glance.
Preliminary figures for the full year 2020 and Q4 2020*.
• Further improvement of the operating result in Q4 in a challenging environment with a still tense global
economic situation. Despite the effects of the pandemic, we were able to achieve clear recovery trends
in EBIT before special effects – starting with a heavily affected Q1: In Q2, the minus was only in single
digits, in Q3 we were almost "break-even" and in Q4 even slightly positive.
• Covid-19 pandemic (virus mutations) and the delayed start of the vaccination campaigns
continue to burden business development; travel restrictions in particular hamper the
worldwide deployment of our fitters and service technicians.
• Despite the continued noticeable interest in our innovative printing, finishing and postpress solutions,
customers are postponing new investments in light of the current economic uncertainty.
• Due to the retrospective application of the revenue recognition policy, turnover in 2020 was
€ 1.029m, EBIT was -€68m and EBIT before special effects was around -€19m.
• Turnover thus clearly exceeded the guidance of € 900-950m; accordingly,
EBIT before special effects also exceeded the guidance
of a negative EBIT before special effects in the mid double-digit million range.
3 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Business performance at a glance.
Preliminary figures for the full year 2020 and Q4 2020*.
• At €975m, order intake for 2020 was around 14.5% down on the prior-year figure,
but significantly better than the -21.9% 12-month order intake for printing presses
published by the German Engineering Federation (VDMA)
• According to preliminary figures, order intake in the Sheetfed segment in particular developed very
positively in the medium- and large-format sheetfed offset and folding carton gluers segments.
Overall, the decline in the Sheetfed segment of -5.4% was significantly better than the industry
average.
• In the Digital & Webfed segment order intake was burdened primarily by lower orders
in the offset web press business and in flexible packaging printing – sales successes
for RotaJET presses and HP machines.
• In the Special segment, fewer orders in security, identification and direct glass printing led to a decline
in sales - in contrast, new business in metal decorating increased.
• The service business comprises more than 30% of the Group and has remained stable in terms of
turnover and results even during the crisis.
4 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Preliminary figures for 2020 and Q4 2020*.
Business development in the group.
Order intake 01.01. - 31.12. Revenue 01.01. - 31.12. Order backlog 31.12.
Under retrospective application of the revenue accounting guideline. Under retrospective application of the revenue accounting guideline
-14.5% -17.4% -7.9%
1,141 1.246 686
975 1,029 632
€m €m €m
2019 2020 2019 2020 2019 2020
• The 14.5% decline in order intake was less severe than the 21.9% drop in new orders
for printing presses published by the VDMA.
• This also applies to the decline in sales, which at 17.4% was less pronounced than the 24.2% drop
in sales of printing presses according to VDMA.
• 632 million in orders on hand as of 31.12.2020 as a solid basis for the 2021 financial year.
5 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Preliminary figures for 2020 and Q4 2020*.
Earnings development in the group.
EBIT 01.01. - 31.12. Special items
Under retrospective application of the revenue accounting guideline
• One-off income from the successful outcome
of a legal proceeding (€4m) in Q2
70 • One-off expenses in connection with the
2020 efficiency programme "P24x" (-€58m) in Q3
€m 2019 -19
-68 • One-off income from the property sale in
-49
Frankenthal (€5m) in Q3
• The decline in EBIT is mainly due to the Covid-pandemic and the associated decrease in turnover.
It also includes special effects of around -€49m.
• Accordingly, EBIT before special effects was around -€19m and thus significantly exceeded our forecast.
6 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Preliminary figures for 2020 and Q4 2020*.
Development in the segments.
€m Sheetfed Digital & Webfed Special Überleitung Konzern
2019 2020 ∆ 2019 2020 ∆ 2019 2020 ∆ 2019 2020 2019 2020 ∆
Order
629 595 -5,4% 144 109 -24,3% 408 306 -25,0% -40 -35 1.141 975 -14,5%
intake
Revenue 639 556 -12,9% 159 129 -18,9% 495 377 -23,8% -47 -33 1.246 1.029 -17,4%
EBIT 19 -28 -15 -25 51 -32 15 17 70 -68 -138
Under retrospective application of the revenue accounting guideline
• The Sheetfed segment achieved a robust order intake – strong order intake in sheetfed offset medium and large format
and folding carton gluers.
• In the Digital & Webfed segment mainly declines in order intake due to lower orders in the offset web press business and
in flexible packaging printing - sales successes in RotaJET presses and HP presses.
• In the Special segment, fewer orders in security, identification and direct glass printing led to a decline in sales –
in contrast, new business in metal decorating increased.
7 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.New revenue recognition policy.
Comparison of the old and new regulations.
Old regulation New regulation
€m €m
-19,8% -17,4%
1,219 978
Revenue 1,246 1,029
2019 2020 2019 2020
€m €m
56 -132
70 -138
EBIT
-76 -68
Under retrospective application of the revenue accounting guideline
New version of the revenue recognition policy for
non-customised projects
• old: Depending on the customer contract, revenue was recognised at • Reduction of volatility in revenue recognition
different points in time (e.g. at delivery, at commissioning, etc.). Targets: • More balanced planning
• new: Sales are predominantly booked at the time of commissioning.
8 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.New revenue recognition policy.
Presentation of the shifts in revenue and EBIT.
New regulation New regulation
Old regulation Old regulation
€m 2019 2019 2020 2020
Revenue 1,219 1,246 978 1,029
Shift in
+ ∑ 27 - + ∑ 51 -
revenue
revenue recognition policy 171 144 144 93
EBIT 56 70 -76 -68
Shift in
+ ∑ 14 - + ∑8 -
EBIT
revenue recognition policy 40 26 26 18
9 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.New revenue recognition policy.
Earnings development in the group.
• Reduction of volatility in revenue recognition
€m Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 • More balanced planning
Old
300
regulation
Revenue 172 232 251 323 978
200
New 100
regulation
Revenue 264 252 249 264 1.029 0
Q1 Q2 Q3 Q4
Old
60
regulation
EBIT -35 -6 -55 20 -76 30
0
New Q1 Q2 Q3 Q4
-30
regulation
EBIT -17 -3 -54 6 -68 -60
Old EBIT for 40
regulation
special -35 -101) -22) 20 -271)2) 20
item
0
New EBIT for Q1 Q2 Q3 Q4
-20
regulation
special -17 -71) -12) 6 -191)2) -40
item
1) One-off income from the successful outcome of a legal dispute (€4m); 2) One-off expenses in connection with the efficiency programme "P24x" (-€58m), one-off income from the sale of real estate in Frankenthal (€5m).
10 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Efficiency programme P24x.
First measures successfully launched in Q4.
• The already adopted efficiency programme P24 was expanded in Q3 2020 also due to
the covid-pandemic, hence P24x. One-off costs of €58m expensed in
Q3 2020 through creation of a provision.
• Annual cost savings increasing to over €100m by 2024: Impact
• ~60% of measures will be installed in 2021, with full-year effect in 2022
• ~30% of measures will be installed in 2022, with full-year effect in 2023
• The efficiency programme aims at savings in purchasing, productivity increases, cost
optimisation of administration, sales and service as well as location concepts.
• 700 to 900 jobs affected in the short and medium term; negotiations with employee
representatives have started successfully
• Measures from Q4 2020 already yield >10% of the savings effects:
• Productivity: Due to already implemented productivity increases and adjustment
of capacities as well as lower quality expenses
• Purchasing: Successful supplier dialogues and optimised cash discounts
• R&D and service: Merging of design and service departments Gross savings ramp-up
of several business units
11 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Market outlook & forecast.
Sequential improvement in order intake and turnover.
Order intake Order intake Revenue
€m
€m
300 1500
-17,4%
200 -14,5%
-21,9% -24,2%
100 1000
0
Q1 Q2 Q3 Q4
Order intake 2019 Order intake 2020 500
Revenue
€m
0
300 Koenig & Bauer-Gruppe VDMA 2019 2020 Koenig & Bauer-Gruppe VDMA
Druckereimaschinen Druckereimaschinen
200
264 252 249 264
100 Koenig & Bauer-Group: decline in order intake and sales was less severe than the
drop in order intake and sales for printing presses published by the VDMA.
0
Q1 Q2 Q3 Q4
Umsatz 2020
Under retrospective application of the revenue accounting guideline.
12 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Market outlook & forecast.
Forecast for 2021 and medium-term targets.
VDMA guidance Koenig & Bauer-Gruppe: Guidance
Production in mechanical and plant engineering €m
1.300
+4% +4% 1.070
1.029
-12%
EBIT margin
>7%
-68 Balanced EBIT
2019 2020 2021e
2020 2021e Mid-term
• 2020 stands for the worst result since the financial crisis, with Revenue EBIT targets
production down by almost 25%.
• This forecast is under the assumption that there will be a lifting of Covid-19 restrictions due to
advances in vaccination, which include Covid-19 viral mutations. The 2020 order intake,
• Despite a increase of 4%, VDMA does not expect the
which declined less compared to the industry as a whole, is considered a solid starting point for the new
mechanical engineering sector in Germany to be able to
financial year under the current Covid-19 framework.
reach its 2019 production level again as early as 2021.
The decline of 12% in 2020 was too high for this, and the start
• Renewed travel restrictions – also due to the emergence of Covid-19 virus mutations – continue to
of 2021 was again marked by drastic restrictions in some
weigh on the first quarter of 2021.
areas of the economy.
Under retrospective application of the revenue accounting guideline.
13 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Koenig & Bauer – Key Investment Highlights.
• Fundamentally intact end markets with different growth opportunities; in particular, the growing
market for packaging is proving very stable in the Covid pandemic.
• Covid pandemic to some extent as an accelerator of trends in the growing market for packaging
printing: e-commerce, rise of household packaging.
• Financially well positioned: Group equity ratio of more than 25 % and more than € 250m
cash and cash equivalents available; Active net working capital management.
• P24x on track with focus on increasing operating profitability through
efficiency gains and scaling the group.
14 Koenig & Bauer | Preliminary figures 26/02/2021
*The fourth quarter 2020 and full year 2020 results contained in this document are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.Koenig & Bauer – Financial calendar
24 March 2021 Annual Report 2020
4 May 2021 Interim report on 1st quarter 2021
11 May 2021 Koenig & Bauer Annual General Meeting
29 July 2021 Interim report on 2nd quarter 2021
28 Oct. 2021 Interim report on 3rd quarter 2021
15 Koenig & Bauer | Preliminary figures 26/02/2021Disclaimer:
The projections contained in this presentation were founded on data available at the time of issue.
While management believes them to be accurate, the impact of external factors beyond its control,
such as changes in the economy, exchange rates and in our industry, may give rise to a different
outcome from that projected. The outlook contains no meaningful portfolio effects and influences
relating to legal and official matters. It also depends on ongoing earnings growth and the absence of
disruptive temporary market changes. KBA therefore accepts no liability for transactions based upon
these projections.
koenig-bauer.com
@koenigandbauer
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