www.bobst.com
CONFERENCE FOR FINANCIAL ANALYSTS AND THE MEDIAZurich, December 3, 2014
www.bobst.com
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 2
AGENDA• Review 2014• Group product strategy• Trends 2014• Outlook 2015• Agenda 2015• Q&A
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 3
REVIEW 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 4
• Macro economy• Market trends• Main events• Group transformation
REVIEW 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 5
Review 2014 Macro economyGlobal economic and political situation
• European economies in many countries still a concern (impact on investment capabilities)
• Political developments and instability in many countries not favorable for the economy (Ukraine, Syria, Egypt, etc.)
• China experiences a lower growth rate than expected, India started to regain confidence after election
• North America quite strong, South America very calm• Health concerns (Ebola)
Currency• Various currency evolutions created uncertainty in business
dynamics
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 6
• Macro economy• Market trends• Main events• Group transformation
REVIEW 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 7
Market trends Forecast packaging consumption growth
Worldwide
CAGR 2012-2018 in % Source: Smithers Pira,PPC, BOBST
1.3 1.4Western Europe
-0.6 -0.2
Central Europe
3.1 2.8
5.5
Asia
8.5
7.17.9
4.1
3.1
Africa
3.33.74.0
4.74.34.5
Flexible Materials
North America
1.9
1.8
Central & South
America
5.9
Folding Carton
Corrugated Board
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 8
Highlights• Western Europe
• Central Europe
• Asia
• Africa & Middle East
• Central & South America
• North America
Market trends BOBST worldwide activity
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 9
• Macro economy• Market trends• Main events• Group transformation
REVIEW 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 10
Review 2014 Main events - Exhibitions
RosUpack in Moscow, Russia
All in Print China in Shanghai, China
Interpack in Düsseldorf, Germany
ExpoPrint Latin America in Sao Paulo, Brazil
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 11
Review 2014 Main events - Open houses• In September, the Flexo folder gluer
FFG 820 DISCOVERY launched in Bobst Lyon
• In May, June and September, Customers Days in Bobst Mex for European markets
• In October, Bobst Bielefeld held an Open House dedicated to the topic of color matching on F&K 20SIX
• In October, Bobst Italia held an International Conference dedicated to high barrier films and short run gravure printing
• In November, the Rotogravure printing press RS 3.0 launched in Bobst Shanghai
• In November, the folder-gluers EXPERTFOLD 145/165 launched during COMPETENCE 14 in Bobst Mex
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 12
Review 2014 Main events - Customer roadshows
Africa Packaging Roadshow in Lagos, Nigeria
Africa Roadshow in Durban & Cape town, South Africa
Africa Flexibles and Sheet-fed Converting in Nairobi, Kenya The first Asian Conference
in Jakarta, Indonesia
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 13
• Macro economy• Market trends• Main events• Group transformation
REVIEW 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 14
Review 2014 Group transformation 2011-2015
Operationalexcellence
Effectiveorganisation People
DO
MA
INS
LEV
ER
S
• Platforming• Technologies• Production
footprint• Focus per core
technologies WF- SF-S
• Lean• Simplify
organization• Project mgmt• Business re
engineering• Inventory• Working capital
Growth
4 pillars of the Group transformation
FOC
US GROUP
1.Lower break-even point2.Increase operational efficiency3.Simplify Group organization – Bring Finance
to high performance 4.Establish DP strategy
• Unique global presence
• Strengthen skills in emerging markets
• Develop key competencies
• Succession planning
• Emerging markets• Service• Improved customer
productivity & operational efficiency
BU SF1.Improve flexibility &
profitability2.Expand into emerging3.Keep/reinforce mature4.Innovate - DP
BU WF1.More profitable but less
ambitious growth2.Expand into emerging3.Keep/reinforce mature4.Innovate - DP
BU SV1.Establish good, basic
service in growing mkts2.Exploit market potential for
SF3.Reinforce service WF/SF
Customers & markets
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 15
In million CHF
Review 2014 Group transformation - Phase 2
Cumulated targeted profit improvement
Variation in P&L year over year
Accounted costs
P&L impact in given year
* Improvement in sales due to reduction of discounts
* Cost savings measures
* Governmental grants
** Including prior year non recurring accounted costs
0.0
0.0
-6.0
-6.0
*49.6
49.6
-6.0
43.6
~17%
*76.0
**32.4
-18.1
14.3
~26%
*78.3
**20.4
-6.2
14.2
~27%
2011 2012 2013 2014
~50% ~66% ~68%
~33% ~8% ~5%
www.bobst.com
GROUP PRODUCT STRATEGY
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 17
Entry
High
Medium
2009
Group product strategy WW market segmentation by technology
Technology
Technology/cost ratio
Semi-automatic & manual machines
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 18
High
Medium
Entry
Basic/Simple
Entry
High
Medium
2009 2010
Semi-automatic & manual machines
Group product strategy WW market segmentation by technology
Technology
Semi-automatic & manual machines
Technology/cost ratio
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 19
High
Medium
EntryEntry
High
Medium
2009 2010
BOBST
Technology
Basic/SimpleSemi-automatic
& manual machinesSemi-automatic
& manual machines
BOBST positioning (2 brands)
Group product strategy WW market segmentation by technology
GORDONLocally designed
Acquisitions
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 20
SP 92 FCH / 106 FCH BOBST hot foil stamping takes a new direction for the Chinese market
LILA II 106/126 You could say that folder-gluer is the complete package
NOVACUT 106 ERAutoplaten® die-cutter in-line blanking for highest productivity
Specifications• 80 to 2'000 g/m2• 7'000 s/h• 1'060 x 720 mm
Specifications• 80 to 1'000 g/m2• 7'000 s/h• 920 x 650 mm• 1'060 x 720 mm
Specifications• 800 g/m2, N,F,E• 20 to 350 m/min• 126 to 1'060 / 1'260 mm
Group product strategy New products - Folding Carton
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 21
FFG 8.20 DISCOVERY Discover the future of box making for a wide range of boxes
EXPERTFOLD 145/165 True control over your corrugated board folding- gluing operation
Asitrade NOVAFLUTE For entering the high quality litho-laminating business
Specifications• 160 to 400 g/m2• 120 m/min• 8'000 s/h• 1'450 x 1'450 mm• 550 x 550 mm
Specifications• Board 8 mm• A-B-C-D-E-AB-AC-BC• 18'000 b/h• 250 x 625 mm• 830 x 2'180 mm
Specifications• A-B-C-E-F-N-BE-BF-EF• 20 to 250 m/min• 25'000 b/h (4&6-corner)• 1700 x 296 mm
Group product strategy New products - Corrugated Board
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 22
RS 3.0 Delivering good quality and efficiency for film
Specifications• Chuck• 1'250 mm• 350 m/min• 380 to 940 mm
Group product strategy New products - Flexible Materials
RS 5002 Delivering good quality and efficiency for film, little automation
Specifications• Chuck - Sleeves• 1'250 mm• 350 m/min• 380 to 940 mm
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 23
OUR INNOVATION STRATEGY
OUR INNOVATION STRATEGY
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 24
TREND 2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 25
Trend 2014 Evolution of the Group's business
6 mo avg 12 mo avg
• 2014 started with a slightly lower level of backlog than beginning 2013
• Order entries lower than in previous year - stable for BUSF but lower for BUWF
• Estimated backlog end 2014 globally lower than end 2013 (SF stable, WF lower)
• Machines backlog average 4.5 months
2014
Average bookings
2009 2010 2011 2012 2013
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 26
Trend 2014 Consolidated turnover evolution
Sales 1'280 1'270
In million CHF
1'264
20122010 2011
1'354
2013
1'055
2009
1'290-1'310
Organic growth
Scope of consolidation
Exchange rate impact
2014
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 27
Trend 2014 Operating profit evolution
Published
Underlying
61.3
-4.3
27.5
35.8
19.0
8.3
20122010 2011
60.3
72.6
2013 2014
-175.2
-106.1
2009
Restated
In million CHF
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 28
Trend 2014 Consolidated net profit evolution
Published
Underlying
49.3
-1.8
2.5
8.9
-5.0
-13.4
20122010 2011
27.7
36.8
2013 2014
-160.7
-106.5
2009
Restated
In million CHF
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 29
OUTLOOK 2015
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 30
OUTLOOK 2015• Market and macro economy• Financials• Long-term financial targets
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 31
"Navigating around a lot of obstacles in 2015"
• Global economy remains with a lot of opportunities and uncertainties
• Americas should be strong, political situation in Europe and AFME will continue to negatively influence consumption, therefore indirectly our markets. Asia-China continues to grow. We expect quite volatile quarters
Outlook 2015 Evolution of global market for BOBST
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 32
Outlook 2015 Business Unit Sheet-fed
** Volatility remains high
Folding carton• Over capacity in mature
markets, good potential in growing countries (e.g SEA - AFME)
• Price pressure increases (offset and converting)
• Drupa effect might occur
Corrugated • Good level of investment
in mature markets, more challenging in BRIC
• Demand continues, large investments last 2 years, some slow down for 2015
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 33
Outlook 2015 Business Unit Web-fed
** Volatility remains high
Tobacco• Strong years 2012-13 for
special machines, slow down in 2014-2015
Flexible packaging• Gravure under big pressure
for complex lines, more simple machines
• Flexo will continue its growth at a reasonable pace
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 34
Outlook 2015 Evolution of global market for BOBSTBU Services• Customers satisfaction
increases in 2014 over 2013
• Support the launch of the 8 novelties - process knowledge development
• Skills and competencies are key success factors
• Continue to increase field skills
• Roll out of Service core processes in 2015-2016
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 35
OUTLOOK 2015• Market and macro economy • Financials• Long-term financial targets
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 36
Turnover
Organic growth
2014 2015In million CHF
Outlook 2015 Consolidated turnover evolution (as per Dec. 2014)
Scope of consolidation
Exchange rate impact
Turnover
1'290 - 1'310
1'250 - 1'330
Assumptions:€ 1.21 / $ 0.92Current level of global economy but no recession.
More precise guidance with publication of 2014 results.
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 37
Outlook 2015 Operating profit evolution (as per Dec. 2014)
Published
Underlying
61.3
-4.3
27.5
35.8
19.0
8.3
20122010 2011
60.3
72.6
2013 2014
-175.2
-106.1
2009
Restated
In million CHF 2015
Compared to 2014 guidance
Assumptions:€ 1.21 / $ 0.92Current level of global economy but no recession.
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 38
OUTLOOK 2015• Market and macro economy • Financials• Long-term financial targets
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 39
Assumptions: € 1.20 / $ 0.92 Current level of global economy but no recession.
Operating profit margin and ROCE including impact of IAS 19R application.* Equity ratio excluding impact of IAS 19R application.
Turnover (mCHF)
Operating profit (EBIT) margin
Return on capital employed (ROCE)
Equity ratio *
Payout ratio
Financial ratios
1'300 - 1'400
min. 7%
9 - 12%
~ 35%
30 - 50%
Previous targets
1'400 - 1'500
min. 8%
min. 15%
40 - 45%
30 - 50%
New targets
Outlook 2015 Long-term financial targets
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 40
AGENDA 2015
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 41
Agenda 2015
February 11, 2015• Publication of the 2014 consolidated turnover• Teleconference for financial analysts and the media
March 17, 2015• Publication of the 2014 financial statements• Conference for financial analysts and the media in Mex
April 29, 2015• Annual General Meeting at 5.00 p.m. in Mex
July 30, 2015• Publication of the half-year results• Teleconference for financial analysts and the media
December 3• Conference for financial analysts and the media in Zurich
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 42
Investors and media relations• Giuseppe Santoro• +41 21 621 2560• [email protected]
For more detailed information on Bobst Group, please refer to our websites:
• www.bobst.com• http://investors.bobst.com
Inquiries
www.bobst.com
THANK YOU FOR YOUR ATTENTION!
FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 44
Bobst Group SA and its affiliated companies operate in a rapidly changing environment. Some of the inherent risks are beyond the control of the company. Certain statements and the material which accompany this presentation by Bobst Group SA are by their very nature forward-looking. The actual results of Bobst Group SA and the consolidated results of Bobst Group may differ materially from those predicted in these presentations. While reasonable efforts have been made to ensure that the information provided in the presentation gives a correct picture of the performance, this presentation is only a summary of the performance of Bobst Group and its affiliated companies. Bobst Group has used reasonable efforts to ensure the accuracy and timeliness of the data included in this presentation as of the day when it is made. Bobst Group SA makes no representation or warranty as to the continued accuracy of the data provided and has no obligation to update the data shown in this presentation, as operational changes may occur as time goes by.
The contents of this presentation are the copyright Bobst Group SA, and may not be reproduced, transferred, or stored without prior written permission from Bobst Group SA.
Disclaimer