Koenig & Bauer : Statement First Quarter 2024, 07.05.2024

Q1 2024

7 May 2024

Dr Andreas Pleßke, CEO Dr Stephen Kimmich, CFO

Koenig & Bauer at a Glance

• 01
• 02
• 03
• 04
• 05

Business Performance at a Glance

News & Highlights

Q1 Figures 2024

Segment Report

Forecast & Key Messages

• Koenig & Bauer entered 2024 on a cautious note in an extremely challenging market environment and announces further details of the "Spotlight" focus programme.
• Under the "Spotlight" focus programme, Koenig & Bauer is working on measures to enhance revenue in profitable areas and on efforts to restructure areas that are currently not profitable. Much depends on the impetus generated during and after the world's leading trade fair drupa, which is taking place again for the first time after an eight-year hiatus.
• "Spotlight" focus programme particularly aims at enhancing earnings and efficiency in the Digital & Webfed and Special segments and requires governance adjustments.
• Further "Spotlight" measures are planned for Group-wide projects and at the Holding.
• As expected, Group revenue of €253.2m and EBIT of €-10.2m lower than in the previous year in a challenging market environment.
• Sheetfed with an encouraging sequential improvement in order intake, Digital & Webfed with a slight increase in revenue, Special set to benefit from a very high order backlog as the year continues.
• Outlook for 2024 confirmed: operating EBIT margin and revenue stable at the previous year's level; "Spotlight" will also help the Group achieve its EBIT margin target of 6-7% by 2026 on Group revenue of €1.5bn.

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// 01 Business Performance at a Glance

Placing the first quarter of 2024 in the big picture

Order Backlog and Order Intake					€m	Revenue								€m
1200	1.007,9	1.027,0	950,4	970,6					500,0								435,7
917,5			906,9	890,6	911,5	901,2					380,0
				400,0
1000											313,9			315,4
800													281,0	294,7
								300,0		253,4					253,2
								238,4
				<			456,6
600
349,1	343,8	333,0	303,4					200,0
400			301,2	251,7	278,4		242,9
200									100,0
0									0,0
Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24		Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
			Order Backlog	Order Intake
Book-to-BillRatio (Ratio of order intake to revenue)				EBIT									€m
2,00																	32,0
1,46	1,36								30,0				25,0
		1,06		1,07		0,94	1,05	0,96	20,0			10,8
			0,80	<	0,80							<-3,2
1,00						10,0					-2,2	3,3
								0,0 -8,5	-5,3
									-10,0									-10,2
0,00									-20,0
Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
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// 02 News & Highlights

Koenig & Bauer announcing further details of the "Spotlight" focus programme

• Under the "Spotlight" focus programme, Koenig & Bauer is working on measures to enhance revenue in profitable areas and on efforts to restructure areas that are currently not profitable. Much depends on the impetus generated during and after the world's leading trade fair drupa, which is taking place again for the first time after an eight-year hiatus.
• There is a particular need for action in the Digital & Webfed and Special segments to harness the strong potential for improving earnings that they offer and require governance adjustments.
• Koenig & Bauer is working on the "D&W 2.0" optimisation and earnings- enhancement project as well as the "BNSx" excellence project under
  "Spotlight".
• Further "Spotlight" measures are planned for Group-wideprojects and at the Holding.

D&W 2.0

Group-

BNSx "Spotlight" wide projects

Holding

4

// 02 News & Highlights

With "D&W 2.0", Koenig & Bauer is addressing the ongoing loss situation

• By reviewing organizational, structural, and operational measures to safeguard earnings opportunities in the growth markets for flexible packaging, digital printing, and corrugated board, the company is addressing the ongoing loss situation in the Digital & Webfed segment.
• The main focus is on eliminating trailing and start-upcosts for new product launches in the digital and corrugated board sector as well as on streamlining and reconfiguring value-adding and non-value-adding structures and processes in the segment.
• Systematic implementation of "D&W 2.0" is being driven forward directly at the Management Board level and requires governance adjustments at the segment level.
• • The CEO, Dr Andreas Pleßke, will be overseeing the "D&W 2.0" optimisation and earnings-enhancement project.
  • As the Management Board member responsible for Digital & Webfed, Christoph Müller, will concentrate to a greater extent on sales, service and strategic partnerships.

D&W 2.0

Group-

BNSx "Spotlight" wide

projects

Holding

5

// 02 News & Highlights

"BNSx" excellence project in the Special segment

• In his additional role as the Management Board member responsible for the Special segment, which he assumed on 1 April 2024, Dr Stephen Kimmich, Chief Financial Officer and Deputy Chief Executive Officer, will lead the

"BNSx" efficiency and earnings-enhancement project as a further key	D&W 2.0
component of the "Spotlight" project.

• The focus is on implementing packages of measures to increase

profitability and earnings in order to return the Special segment to its			Group-
original above-average performance in the long term.	BNSx	"Spotlight"	wide
• Following the completion of major R&D projects, the "BNSx" project with the			projects
Koenig & Bauer Group's clear commitment to the banknote market aims to
optimise the operational value-creation structures at the site in Mödling
(Austria) and the overall responsibility of the business unit in Lausanne		Holding
(Switzerland), as well as various support and specialist functions in
Würzburg

• In addition, further measures are to be adopted to accelerate the successful market launch of the technologies developed in the Special segment over the past five years and to scale these accordingly.

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// 02 News & Highlights

Further "Spotlight" measures for Group-wide projects and at the Holding

• By re-prioritizingGroup-wide projects and initiatives,
  the Group expects to generate savings in external services, for example.
• Internal resources that become available are being allocated to projects and initiatives that are critical to operations and have an impact on earnings.
• At the Holding, there are plans to address the inflation-induced increases in personnel and material costs by adopting a package of efficiency measures and to generally optimise central administrative structures.

D&W 2.0

Group-

BNSx "Spotlight" wide

projects

Holding

7

// 02 News & Highlights

Sheetfed segment: focus on successful go-to-market strategy

• At the world's largest industry trade fair drupa (28 May - 7 June 2024, in Düsseldorf), the Sheetfed segment will be showcasing a wide range of technical innovations for the end-to-endpackaging workflow - from prepress to printing and from punching to folding-boxbonding.

• All the presses presented at drupa - a Rapida 106 X, the VariJET 106 digital folding-box printing press, a CutPRO X 106 rotary die-cutter, a CutPRO Q 106 SB flat-beddie-cutter and an Omega Alius 90 folding-box gluer - come equipped with the latest features. These boost performance by at least 20% compared to earlier generations, thus setting the benchmarks in folding- box production once again. Presented to the general public here for the first time, digital innovations in the packaging workflow will also play a central role.
• With the sequential recovery in order intake in the Sheetfed segment since the third quarter of 2023 and the roll-outof these new features, Koenig & Bauer expects a significant improvement in earnings in the second half of 2024 as well as in

2025.

8

// 02 News & Highlights

"Spotlight" focus programme also aimed at underpinning the Group's targets

• With the release of further details of the previously announced "Spotlight" focus programme, Koenig & Bauer is following a clear plan to lead the company out of the current market phase in a stronger position, despite rising costs as a result of delayed inflation-relatedincreases in personnel and material costs.
• Koenig & Bauer expects to see significant impetus in the market and in customer investments during and after drupa in June 2024 after an eight-year hiatus.
• The "Spotlight" focus programme is to be scaled accordingly on the basis of real post-drupa effects.
• The members of the Management Board responsible for the individual segments will be finalising the specific details for implementing the projects and measures described above.
• With "Spotlight", Koenig & Bauer is also aiming to secure the company's targets of achieving an EBIT margin of 6 - 7% on Group revenue of €1.5bn by 2026.

D&W 2.0

Group-

BNSx "Spotlight" wide

projects

Holding

9

// 03 Q1 Figures 2024

Business Performance in the Group

Order Intake 01.01. - 31.03.	€m	Revenue 01.01. - 31.03.	€m		Order Backlog 31.03.	€m

-7,2%

-19,4%

		301,2
					242,9

	-9,9%
	970,6	901,2
281,0	253,2

			2023				2024								2023			2024							2023				2024
								456,6
																								917,5 1007,91027,0 950,4	970,6
349,1	343,8	333,0	303,4	301,2										313,9	380,0		315,4		435,7				906,9	890,6	911,5	901,2
											294,7
						251,7	278,4		242,9		-46,8%	238,4	253,4		281,0		253,2		-41,9%									-1,1%
Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24		Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24	Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24

• As of 31 March 2024, the order intake was €242.9m, 19.4% below the previous year's figure of €301.2m and thus developed as expected.
• Group revenue decreased by 9.9% compared to the same quarter of last year at €253.2m.
  This was due in particular to the decline in incoming orders in the Sheetfed segment in the third quarter of 2023 and a production-related lower percentage of completion (POC) than in the previous year in the Banknote Solutions business unit.
• At €901.2m, the order backlog was 7.2% lower than the figure as of 31 March 2023 (€970.6m). Compared to the end of the 2023 financial year, it decreased by 1.1% and serves as a solid basis for further development in the 2024 financial year.

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