Koenig & Bauer : Q1 Results 2021, 04.05.2021

We print

your world.

Q1 2021

Dr. Andreas Pleßke, CEO | Dr. Stephen Kimmich, CFO

04 May 2021, Würzburg

1	we're on it.	02/05/2021

Koenig & Bauer at a glance.

1.	Business performance at a glance.
2.	Figures Q1 2021.
3.	Segments.
4.	Efficiency programme P24x.
5.	Market outlook & forecast.

• Further improvement in operating profit achieved in Q1.
• Increase in order intake, particularly due to Sheetfed segment.
• Business performance still impacted by travel restrictions.
• Covid-19-relateddecline in Group sales - but better than industry average according to VDMA,
  improvement in EBIT despite decline in sales.
• FCF improves and net financial position reduced.
• Segments affected to varying degrees by Covid-19
• Double-digitgrowth in order intake in Sheetfed segment.
• Further measures under the P24x efficiency program were also successfully implemented in the first quarter of 2021, which had a positive impact on the Group's earnings performance.
• Fundamentally intact end markets with different growth opportunities. Forecast 2021: +4% sales, break-even EBIT; medium-term targets confirmed.

2	Koenig & Bauer | Q1 figures 2021

Business performance at a glance.

First Quarter 2021.

• 5.3% increase in incoming orders to €286.0 million - particularly due to double-digit growth in the Sheetfed segment - of which around 60% is attributable to the packaging printing market, which is growing strongly and is more resistant to pandemics. This enabled Koenig & Bauer to
  further expand its market position with sheetfed offset presses in packaging printing.
• Covid-19-relateddecline in Group sales of 7.8% to €243.5m - but better than the industry average with a drop of 13.5% for printing presses according to VDMA.
• Efficiency program P24x has a positive impact on earnings development; despite decline in sales, EBIT improves by €8.1m to -€8.9m.
• Net loss increases to -€11.7m as of March 31, 2021.
• Free cash flow improved by €53.4m to €22.1m.
• Despite persistent Covid 19 situation worldwide, net financial position significantly reduced to -€26.0m.
• Order backlog increased by around 7% compared to year-end to €674.5m and serves as a solid basis for the rest of fiscal 2021.
• Planned organic sales growth of around 4% with balanced EBIT for 2021 and medium-term targets of €1.3 billion sales with an EBIT margin of at least 7% confirmed.

3	Koenig & Bauer | Q1 figures 2021

Figures first Quarter 2021.

Business development in the group.

Order Intake 01.01. - 31.03.	Revenue 01.01. - 31.03.	Order backlog 31.3.

								-2,7%
		+5,3%			-7,8%		693,2	674,5
In €m	271,5	286,0		264,2	243,5	In €m
2020	2021	In €m	2020	2021	2020	2021

• Despite a reluctance to invest, particularly in new market segments due to the global covid 19 pandemic, incoming orders were 5.3% up on the previous year.

• At 7.8%, the drop in sales was less pronounced than the 13.5% decline in printing presses according to the VDMA.
• The order backlog declined slightly by around 3% compared to the prior-year quarter,
  but increased by 6.7% compared to the end of the year and serves as a solid basis for the rest of fiscal 2021.

4	Koenig & Bauer | Q1 figures 2021

Figures first Quarter 2021.

Business development in the group.

EBIT 01.01. - 31.03.	EBIT- bridge ∆ €8.1m

20202021

In €m	-17,0	+47,6%	-8,9

_

+

+

Volume and product mix (approx. €7m) P24x (approx. €10m)

Short-time work (approx. €5m)

• Despite lower sales compared to the previous year, the earnings situation in the Group developed more positively
• Despite a negative volume and margin effect in Q1, the €8.1m improvement in EBIT to €8.9m is mainly attributable to the P24x efficiency program, lower functional costs and the use of short-time working.

5	Koenig & Bauer | Q1 figures 2021