Koenig & Bauer : Interim report II/2021, 29.07.2021

Group

Interim Report

First Half-Year 2021

Koenig & Bauer Group in figures

01.01. - 30.06.

in €m	2020*	2021
Order intake	480.2	615.3
Revenue	515.7	493.2
Order backlog at 30.06.	650.4	754.1
Export level in %	85.7	84.0
Earnings before interest and taxes (EBIT)	-19.8	6.4
Earnings before taxes (EBT)	-21.8	1.3
Net profit/loss	-24.3	1.1
Balance sheet total at 30.06. (prior year: 31.12.)	1,321.1	1,268.1
Equity at 30.06. (prior year: 31.12.)	342.2	354.1
Investment in intangible assets,
property, plant and equipment	19.4	12.1
Depreciation on intangible assets,
property, plant and equipment	17.1	18.2
Payroll at 30.06.	5,661	5,402
- thereof apprentices/trainees	284	264
Cash flows from operating activities	-68.6	26.5
Earnings per share in €	-1.48	0.05

* adjusted

Contents

Letter to shareholders	4
Koenig & Bauer shares	9

Group management report 10

	10	Macroeconomic and
		industry conditions
	10	Business performance
	12	Earnings, finances and assets
	14	Segment performance
	16	Research and Development
	18	Employees
	19	Risks and Opportunities
	19	Outlook
Sustainability	21
Interim accounts	26
	26	Group balance sheet
	27	Group income statement
	28	Statement of changes in
		Group equity
	28	Statement of comprehensive
		Group income
	30	Group cash flow statement
	31	Notes
Key financial dates	36

3

Letter to shareholders

Dear shareholders,

The first half of 2021 was favourable for the Koenig & Bauer Group in several respects. Our customers ordered around 28% more than in the same period of the previous year. This performance was particularly underpinned by the increase of around 45% in orders in the Special segment. Orders were up on the previous year in all parts of this segment.

In June, MetalPrint recorded one of the best order intakes in the Company's history. This shows that, after a difficult first half for this segment, the order situation is improving and that the global economic engine is increasingly gaining momentum, allowing Koenig & Bauer to face the future with confidence and in a good position. Order intake was also up in the Sheetfed segment again, rising by around 30%, with the sharply growing and more pandemic-resistant packaging printing market accounting for the bulk of this growth. This enabled us to further expand our position in the market for sheetfed offset presses for packaging printing. The market leadership in Germany achieved in 2020 after the substantial increase in market share was particularly gratifying.

Koenig & Bauer also celebrated a number of successes in China - at this year's China Print in Beijing from 23 to 27 June we set a new record for this trade fair in terms of the number of orders received. At the core of the presentation was the world premiere of the new Rapida 105 generation. It was one

4

Letter to shareholders

from left to right: Dr Andreas Pleßke

CEO - Board member Special segment Dr Stephen M. Kimmich

CFO

Michael Ulverich

COO - Production, Purchasing & Logistics

Ralf Sammeck

CDO - Board member Sheetfed segment

Christoph Müller

Board member Digital & Webfed segment

of the absolute highlights of the fair and also attracted great attention beyond it. The visitors to our stand at the fair were impressed by the demonstrations of the new medium-format press, its high printing performance and the swift job changes. The fact that the press is wholly developed and produced

in Germany is another key factor in its favour. Thanks to the comprehensive scope for configuration and its suitability for a wide range of different substrates, the new Rapida 105 can be used in packaging, commercial and also label printing. In this way, our customers can widen their product range and harness new potential for their business success. Alongside the medium-format presses, the large-format Rapida 145 and Rapida 164 sheetfed offset presses also enjoyed strong demand. This is due to the particular need for high-quality packaging - mainly for mobile telephones and consumer electronics.

This shows that our customers' spending reticence is beginning to dissipate in many areas. Nevertheless, some new investments are being postponed due to the uncertainty surrounding the Covid-19 pandemic. In the first half of 2021, this mainly concerned incoming orders in digital decor and corrugated printing. However, as of the end of July 2021, a total of five machines from the CorruCUT series had been successfully marketed to beta customers as well as new

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