IR Corporate Presentation KSB SE & Co. KGaA Dr. Matthias - - PowerPoint PPT Presentation
IR Corporate Presentation KSB SE & Co. KGaA Dr. Matthias Schmitz (CFO) Dieter Pott (Head of Finance and Accounting) IR Corp. Presentation June 2020 1 About us KSB Group is one of the worlds leading manufacturers of pumps and valves
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KSB SE & Co. KGaA
Dieter Pott (Head of Finance and Accounting)
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KSB Group is one of the world’s leading manufacturers
applications, providing a comprehensive range of service offerings.
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Ownership structure &
Key Figures (EUR million) 2018 2019
2,303.5 2,453.8
2,245.9 2,383.2
179.2 195.5
8.0 % 8.2 %
74.7 113.6
3.3 % 4.8 %
38.2 % 37.1 %
20% 80%
Preference shares: 864,712
Johannes & Jacob Klein GmbH Freefloat 84% 16%
Ordinary shares: 886,615
Johannes & Jacob Klein GmbH Freefloat
Future Perspectives
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Focus on Customers in Sales and After Sales worldwide Agility and Flexibility in Structures and Processes Profit Orientation based on Key Performance Indicators High Engineering Competence powered by Innovation and Excitement of Creativity
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KSB – We shape the future of Fluid Handling
We strive to achieve greater benefits for our customers. We inspire with our expertise, innovation power and creative drive. This makes us a successful, independent and reliable partner. Since 1871.
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Competitive cost structures
(companies, products)
Reaching competitive cost structures and striving for profitable growth at the same time
Focussing on profitable growth
(Lasercusing) for spare parts
Uniform systems and lean processes
and controlling
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Pumps, valves and service
2019 Market size (€M) by geography
Americas Europe MEA APAC World > 4% 2–4% <2% CAGR 2019-2025 P V 18,700 8,000 P V 17,900 8,400 P V 3,300 8,700 27,200 P 14,500 V 34,200 P 72,600 V Source: KSB estimates
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Building Services Energy General Industry Mining Petrochemicals/Chemicals Water Centrifugal pumps in m€ Valves in m€ 2,600 4,300 9,300 2,400 8,000 5,700 25,600 6,900 1,600 19,500
Pumps, valves and service
Megatrends driving growth in KSB's markets
− Increasing regulation − Energy efficiency
− Need for more infrastructure
− Growing demand for water reuse, treatment and efficiency
Source: KSB estimates > 4% 2–4% <2% CAGR 2019-2025
8,000 12,800
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KSB production sites KSB sales and service sites Share of regions
(as per 31 December 2019)
Order intake Sales Europe 53 % 54 % Asia 24 % 23 % America 16 % 16 % MEA 7 % 7 %
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KSB Group Pumps Valves Service
1,112.7 743.1 171.3 198.3 (EUR million)
intake decreased across all segments and regions caused by the corona virus pandemic.
(- EUR 71.1 million)
(- EUR 17.7 million)
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KSB Group Pumps Valves Service + 6.5 % + 7.4 % + 1.8 % + 7.3 % 2,453.8 1,617.8 361.9 474.1 (EUR million)
segments particular driven by
+ Energy (+ EUR 43.4 million) + Industry (+ EUR 25.4 million) and + Water / Waste Water 12(+ EUR 23.3 million)
+ Asia / Pacific (+ EUR 69.5 million) + America (+ EUR 44.2 million)
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+ 1.0 % + 13.6 % + 12.3 % Europe Asia / Pacific Americas Middle East / Africa
53 % 16 % 24 % 7 % Middle East / Africa Asia / Pacific Americas Europe (in EUR + 13.1 million) (in EUR + 69.5 million) (in EUR + 44.2 million) (in EUR + 23.4 million)
2019
Total order intake: EUR 2,453.8 million
+ 16.3 %
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KSB Group Pumps Valves Service 1,049.2 695.6 165.4 188.2
(EUR million)
decrease in sales revenue. In particular, government-ordered closures in Asia / Pacific had a negative impact.
region:
(- EUR 38.0 million)
(- EUR 9.1 million)
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KSB Group Pumps Valves Service 2,383.2 1,562.5 364.4 456.4 + 6.1 % + 6.3 % + 6.9 % + 4.7 % (EUR million)
long-term projects, sales revenue lags behind order intake
+ Asia/Pacific (+ EUR 59.5 million) + Americas (+ EUR 41.9 million)
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54% 16% 23 % 7 % Europe Middle East / Africa Asia / Pacific Americas
+ 3.1 % + 12.4 % + 12.1 %
Europe Asia / Pacific Americas Middle East / Africa
(in EUR + 38.9 million)
2019
Sales in total: EUR 2,383.2 million
(in EUR + 59.5 million) (in EUR + 41.9 million) (in EUR
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(EUR million) 2018 2019 H1/2019 H1/2020 Sales revenue 2,245.9 2,383.2 1,141.9 1,049.2 Cost of materials % of total Sales revenue
41.6
41.3
44.3
41.2 Staff costs % of total Sales revenue
34.1
35.6
36.8
39.8 Other expenses / income (net)
EBIT 74.7 113.6 45.2 15.1
* Change in reporting from the 2019 Half-year Financial Report, other taxes item that was previously reported separately in the income statement was included in other expenses.
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66.6 78.9 13.0 12.9 * 2018 2019 79.6 107.0 Property, plant and equipment Intangible assets
60 % 20 % 16 % 4 % Europe Middle East / Africa Asia / Pacific Americas
2019 (EUR million)
Capex in total: EUR 107.0 million
15.2 Right of use asset * * First-time adoption of the new IFRS 16 accounting standard.
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2,253 2,242 2,327 885.4 856.8 862.6 2017 2018 2019 Equity Balance sheet total 39,3 % 38,2 % (EUR million) 37,1 %
interests
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364.3 333.9 347.3
2017 2018 2019 Financial liabilities Available financial resources 288.0 255.0 (EUR million) 246.3*
were recognized as a result of the first-time adoption of IFRS 16 in 2019 as compared to the fiscal year 2018.
* Adjusted by the lease liabilities the net financial position amounts to € 293.4 million.
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(EUR million)
2017 2018 2019 Long-term debt Short-term debt
Financial liabilities
liabilities of € 22.2 million are mainly attributable to the first-time adoption
repayment of a borrowers note.
is affected by € 15.0 million and the long-term debt of € 56.8 million is affected by € 32.0 million due to the capitalization of rights of use to leased assets under IFRS 16.
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5.501 5.501 7.501 3.002 8.501 2015 2016 2017 2018 2019
1 EUR / Preference shares: + 0.26 EUR 2 EUR / Preference shares: + 0.38 EUR
24.7 % 35.5 % 47.9 %
Pay out ratio Group: Dividend per share / EPS
29.4 % 34.7 %
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+ Outlook for financial year 2020 + Climb 21 Strategy Project
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to create uncertainties regarding the impact on supply chains, production and customer demand in the near future.
coronavirus pandemic on the customers’ willingness to reach out and invest, and thus on the key indicators of order intake, sales and EBIT.
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Industry
Further slowdown of industrial production in particular of mechanical engineering Weaker demand and continuing consolidation, contraction in investments
Share in KSB COI (2019)
Energy supply Petro-/Chemical Mining Water/Wastewater
Contraction in countries with economic recession Worldwide extension and renewal of water and wastewater infrastructures in particular in APAC and Africa Slow down in investments in power plants and renewals
Construction
Reduction in production, capital spending and global fuel demand
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27
Efficiency and effectiveness by adapting the organi- sational structure Profitable growth through focusing on markets
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Efficiency / Cost savings / Liquidity Profitable growth Structural measures
Potential through external growth Long-term measures
Medium-term measures Short-term measures
OCT
2018 2021 2020 2019
Q1 Q2 Q3 Q4 NOV DEC Focusing on markets Imple- mentation
Improvement of the income statement Improvement of the balance sheet
Focused acquisitions Development of a new organisational structure and functions
Climb 21
Climb 21 28
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Climb 21
Regions Headquarter
Mining Energy Petrochemicals /Chemicals Water General Industry Building Services Pumps Valves Service Central Services KSB Valves KSB SupremeServ
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KSB joined the UN Global Compact in 2010. I 31 Sustainability
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32 Sustainability Greenhouse gases
Reduction in CO2 emissions year on year in 2019
Renewable energy
Share of renewable energy in the Group’s power consumption
Social activities
Charitable initiatives and projects supported
Employee motivation
2017: 46 % Target for 2025: 80 %
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1. CO2 emissions: - 30 % 2. KSB water pumps: Annual savings of 850,000 tonnes of CO2 3. Ecological product rating: Recyclability 4. Employee satisfaction index: 80 % 5. At least 20 % of management positions: Women 6. Reduction of days lost due to occupational accidents: < 0.3 days per employee / year 7. Professional development: At least 30 hours per employee / year 8. Sustainability performance assessment of key suppliers 9. Global commitment: 25 social projects / year
33 Sustainability
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+ Executive Board + Legal form + Financial Statements + Financial Calendar 2020
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Dr Stephan Timmermann Ralf Kannefass Dr Stephan Bross Dr Matthias Schmitz
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Mechanical engineer
appointed until 30 November 2023.
2015 – 2017 Consultant 2005 – 2015 Member of the Board of MAN Diesel & Turbo SE 2002 – 2005 Managing Director Schwäbische Hüttenwerke GmbH 1999 – 2002 CEO MAN Logistics GmbH
Integrated engineering/business administration degree
appointed until 31 May 2023
2014 – 2016 CFO H.C. Starck GmbH, Munich 2007 – 2013 CFO Linde Material Handling GmbH (Kion Group) 2002 – 2007 Head Controlling Mahle GmbH, Division Pistons 1993 – 2002 KSB AG, last position: Head Controlling KSB Group Dr Stephan Timmermann Dr Matthias Schmitz
Members of the Executive Board
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Ralf Kannefass
Members of the Executive Board
Mechanical engineer and degree in business
appointed until 30 June 2023 2014 – 2017 Industrial consultancy Stieler Kannefass 2013 – 2014 Board Member of Cassidian / EADS (today Airbus Defence & Space) 1994 – 2013 Siemens AG, last position: CEO of Siemens Energy, Oil & Gas Turbo Equipment Dr Stephan Bross
Mechanical engineer, Dr-Ing.
appointed until 14 September 2022 At KSB for 24 years, earlier positions: Head of Corporate Units Pumps and Valves Head of Service Head of Product Management and Development Engineered Pumps Member of the Supervisory Board from 2010 to 2017
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Legal Form
KGaA, Kommanditgesellschaft auf Aktien / limited partnership by shares
KSB Foundation
Johannes und Jacob Klein GmbH (majority shareholder) Annual General Meeting Other Shareholders (free float) Supervisory Board Klein, Schanzlin & Becker GmbH KSB Management SE with Administrative Board
KSB SE & Co. KGaA
Kühborth-Stiftungs GmbH
99.4 % 99.4 % 0.6 % 0.6 %
managed by the general partner KSB Management SE (with Non-executives and Executive Directors)
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(EUR million) 2018 2019 H1/2019 H1/2020 Sales revenue 2,245.9 2,383.2 1,141.9 1,049.2 Total output of operations 2,275.8 2,381.2 1,182.8 1,064.3
Other income 33.1 33.4 19.2 15.5 Cost of materials
Staff costs
Depreciation and amortization expense
Other expenses
Other taxes
74.7 113.6 45.2 15.1
Financial income / expense (net)
Income from / expense to investments accounted for using the equity method 2.5 1.2
EBT 65.6 103.4 37.9 10.4
Taxes on income
Net profit 23.9 58.5 19.5
* Change in reporting from the 2019 Half-year Financial Report, other taxes item that was previously reported separately in the income statement was included in other expenses.
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(EUR million) 2018 2019 H1/2019 H1/2020 Cash flows from operating activities 61.4 144.9
23.1 Cash flows from investing activities
27.0
Cash flows from financing activities
Changes in cash and cash equivalents
24.5 14.2
Effects of exchange rate changes on cash and cash equivalents 4.6
Effects of changes in consolidated Group
289.5 255.6 255.6 280.9 Cash and cash equivalents at end of period 255.6 280.9 268.3 241.6
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(EUR million) 2018 2019 H1/2020 Non-current assets 696.7 782.6 677.6
Intangible assets 91.1 97.1 95.9 Right-of-use assets
43.7 Property, plant and equipment 496.6 511.3 491.5 Non-current financial assets 1.8 2.0 1.1 Other non-financial assets 2.9 2.8 2.8 Investments accounted for using the equity method 23.9 24.2 22.6 Deferred tax assets 80.4 95.1 20.0
Current assets 1,545.5 1,544.4 1,481.8
Inventories 544.4 544.7 557.9 Contract assets 74.5 76.4 97.2 Trade receivables 518.1 504.1 448.3 Other financial assets 103.4 90.9 92.8 Other non-financial assets 49.5 39.6 44.1 Cash and cash equivalents 255.6 280.9 241.6 Assets held for sales
2,242.2 2,327.0 2,159.4
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(EUR million) 2018 2019 H1/2020 Equity 856.8 862.5 727.0 Non-current liabilities 620.4 715.6 716.9
Deferred tax liabilities 10.3 11.1 11.3 Provisions for employee benefits 578.6 646.3 650.9 Other provisions 1.4 1.4 1.4 Financial liabilities 30.1 56.8 53.4
Current liabilities 765.0 748.9 715.5
Provisions for employee benefits 9.3 12.2 11.5 Other provisions 83.5 68.4 77.9 Financial liabilities 48.8 44.3 36.3 Contract liabilities 157.4 165.5 170.1 Trade payables 270.2 252.7 237.3 Other financial liabilities 32.8 31.2 27.1 Other non-financial liabilities 154.7 161.5 142.3 Income tax liabilities 8.3 9.1 13.0 Liabilities held for sales
2,242.2 2,327.0 2,159.4
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13 August 2020 Half-year financial report January – Juni 2020 12 November 2020 Interim report January – September 2020 28 January 2021 Preliminary report on financial year 2020 5 March 2021 Publication Financial Statement 2020, Financial press conference 29 April 2021 Interim report January - March 2021 6 May 2021 Annual General Meeting
Financial Calendar 2020 / 2021
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Dieter Pott Head of Finance and Accounting Phone: +49 (0) 6233 86-2614 eMail: Dieter.Pott@KSB.com
Investor Relations
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This investor presentation contains forward-looking statements that are based on current estimates, forecasts and assumptions made by KSB management to the best of its knowledge and other information currently available to KSB. By their very nature, the forward-looking statements of this presentation are subject to various known and unknown risks, uncertainties and other factors, the non-occurrence or occurrence of which could cause material differences in future results of
limited to changes in political, business, economic and competitive environment, effects of future legal and legislative issues, fiscal, and other regulatory measures, foreign exchange rate fluctuations, interest rates, developments in raw material and personnel costs, launches of competing products or services, poor acceptance of new products or services, and changes in business strategy. KSB does not intend and does not assume any liability whatsoever to publicly update or revise any forward-looking statements or
warranty, express or implied, is made by KSB and/or its management with respect to the completeness, fairness, correctness, reasonableness or accuracy of any information, facts, expectations or opinions contained herein. Neither KSB nor any of its affiliates or representatives shall have any liability whatsoever (in negligence or otherwise) for any losses or damages arising from any use of this presentation or its content or otherwise arising in connection with the statements given herein. This presentation includes percentage and number rounding.