kba financial press conference 15 november 2010 in frankfurt · digital printing is primarily...
TRANSCRIPT
KBA Page 1
KBA financial press conference
15 November 2010 in Frankfurt
KBA Page 2
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 Page 3
Current developments in the
market and print media sector
Klaus Schmidt, Director Marketing and Corporate Communications,
KBA Group
KBA Page 4
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 Page 5
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 Page 6
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 Page 7
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 Page 8
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 Page 9
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 Page 10
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 Page 11
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 Page 12
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 Page 13
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 Page 14
Market share – newspaper presses 2010*
*excluding Japan Sources: KBA, internal market research and calculations, 10/2010
KBA43%
Goss11%
Manugraph7%
TKS10%
manroland19%
Other10%
KBA Page 15
Market share – commercial web presses 2010*
*excluding Japan Sources: KBA, internal market research and calculations, 10/2010
KBA14%
Goss36%
Komori4%
manroland44%
Other2%
KBA Page 16
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 Page 17
Consolidated financial accounts to 30 September
Helge Hansen, President and CEO, Koenig & Bauer AG
KBA Page 18
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 Page 19
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%
Consolidated figures as per IFRS
€m
KBA Page 20
Germany16.6%
Rest ofEurope34.8%
Africa/Latin America11.9%
Asia/Pacific23.5%
NorthAmerica13.2%
Consolidated figures as per IFRS
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 Page 21
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%
Consolidated figures as per IFRS
€m
KBA Page 22
-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
Consolidated figures as per IFRS
€m
KBA Page 23
11.6
9.5
0
5
10
15
1.1.-30.9.2009 1.1.-30.9.2010
in€
mPositive cash flow
Consolidated figures as per IFRS
Operativecash flow+€2.1m
€m
KBA Page 24
24.7
18.6
0
10
20
30
30.09.2009 30.09.2010
in%
High level of net liquidity
Consolidated figures as per IFRS
+€6.1m
%
KBA Page 25
37.3
34.4
0
10
20
30
40
50
30.09.2009 30.09.2010
in%
Above-average equity ratio
Consolidated figures as per IFRS
+2.9
%
KBA Page 26
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 Page 27
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 Page 28
Outlook
Helge Hansen
KBA Page 29
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 Page 30
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 Page 31
Koenig & Bauer AG
Friedrich-Koenig-Strasse 4
97080 Würzburg
Germany
www.kba.com