CONFERENCE FOR FINANCIAL ANALYSTS AND THE … · conference for financial analysts and the media. zurich, december 3, ... • a-b-c-e-f-n-be-bf-ef ... conference for financial analysts

www.bobst.com

CONFERENCE FOR FINANCIAL ANALYSTS AND THE MEDIAZurich, December 3, 2014

www.bobst.com

FINANCIAL CONFERENCE, ZURICH | © BOBST | 03/12/2014 | PAGE 2

AGENDA• Review 2014• Group product strategy• Trends 2014• Outlook 2015• Agenda 2015• Q&A


REVIEW 2014


• Macro economy• Market trends• Main events• Group transformation

REVIEW 2014


Review 2014 Macro economyGlobal economic and political situation

• European economies in many countries still a concern (impact on investment capabilities)

• Political developments and instability in many countries not favorable for the economy (Ukraine, Syria, Egypt, etc.)

• China experiences a lower growth rate than expected, India started to regain confidence after election

• North America quite strong, South America very calm• Health concerns (Ebola)

Currency• Various currency evolutions created uncertainty in business

dynamics



REVIEW 2014


Market trends Forecast packaging consumption growth

Worldwide

CAGR 2012-2018 in % Source: Smithers Pira,PPC, BOBST

1.3 1.4Western Europe

-0.6 -0.2

Central Europe

3.1 2.8

5.5

Asia

8.5

7.17.9

4.1

3.1

Africa

3.33.74.0

4.74.34.5

Flexible Materials

North America

1.9

1.8

Central & South

America

5.9

Folding Carton

Corrugated Board


Highlights• Western Europe

• Central Europe

• Asia

• Africa & Middle East

• Central & South America

• North America

Market trends BOBST worldwide activity



REVIEW 2014


Review 2014 Main events - Exhibitions

RosUpack in Moscow, Russia

All in Print China in Shanghai, China

Interpack in Düsseldorf, Germany

ExpoPrint Latin America in Sao Paulo, Brazil


Review 2014 Main events - Open houses• In September, the Flexo folder gluer

FFG 820 DISCOVERY launched in Bobst Lyon

• In May, June and September, Customers Days in Bobst Mex for European markets

• In October, Bobst Bielefeld held an Open House dedicated to the topic of color matching on F&K 20SIX

• In October, Bobst Italia held an International Conference dedicated to high barrier films and short run gravure printing

• In November, the Rotogravure printing press RS 3.0 launched in Bobst Shanghai

• In November, the folder-gluers EXPERTFOLD 145/165 launched during COMPETENCE 14 in Bobst Mex


Review 2014 Main events - Customer roadshows

Africa Packaging Roadshow in Lagos, Nigeria

Africa Roadshow in Durban & Cape town, South Africa

Africa Flexibles and Sheet-fed Converting in Nairobi, Kenya The first Asian Conference

in Jakarta, Indonesia



REVIEW 2014


Review 2014 Group transformation 2011-2015

Operationalexcellence

Effectiveorganisation People

DO

MA

INS

LEV

ER

S

• Platforming• Technologies• Production

footprint• Focus per core

technologies WF- SF-S

• Lean• Simplify

organization• Project mgmt• Business re

engineering• Inventory• Working capital

Growth

4 pillars of the Group transformation

FOC

US GROUP

1.Lower break-even point2.Increase operational efficiency3.Simplify Group organization – Bring Finance

to high performance 4.Establish DP strategy

• Unique global presence

• Strengthen skills in emerging markets

• Develop key competencies

• Succession planning

• Emerging markets• Service• Improved customer

productivity & operational efficiency

BU SF1.Improve flexibility &

profitability2.Expand into emerging3.Keep/reinforce mature4.Innovate - DP

BU WF1.More profitable but less

ambitious growth2.Expand into emerging3.Keep/reinforce mature4.Innovate - DP

BU SV1.Establish good, basic

service in growing mkts2.Exploit market potential for

SF3.Reinforce service WF/SF

Customers & markets


In million CHF

Review 2014 Group transformation - Phase 2

Cumulated targeted profit improvement

Variation in P&L year over year

Accounted costs

P&L impact in given year

* Improvement in sales due to reduction of discounts

* Cost savings measures

* Governmental grants

** Including prior year non recurring accounted costs

0.0

0.0

-6.0

-6.0

*49.6

49.6

-6.0

43.6

~17%

*76.0

**32.4

-18.1

14.3

~26%

*78.3

**20.4

-6.2

14.2

~27%

2011 2012 2013 2014

~50% ~66% ~68%

~33% ~8% ~5%

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GROUP PRODUCT STRATEGY


Entry

High

Medium

2009

Group product strategy WW market segmentation by technology

Technology

Technology/cost ratio

Semi-automatic & manual machines


High

Medium

Entry

Basic/Simple

Entry

High

Medium

2009 2010



Technology


Technology/cost ratio


High

Medium

EntryEntry

High

Medium

2009 2010

BOBST

Technology

Basic/SimpleSemi-automatic

& manual machinesSemi-automatic

& manual machines

BOBST positioning (2 brands)


GORDONLocally designed

Acquisitions


SP 92 FCH / 106 FCH BOBST hot foil stamping takes a new direction for the Chinese market

LILA II 106/126 You could say that folder-gluer is the complete package

NOVACUT 106 ERAutoplaten® die-cutter in-line blanking for highest productivity

Specifications• 80 to 2'000 g/m2• 7'000 s/h• 1'060 x 720 mm

Specifications• 80 to 1'000 g/m2• 7'000 s/h• 920 x 650 mm• 1'060 x 720 mm

Specifications• 800 g/m2, N,F,E• 20 to 350 m/min• 126 to 1'060 / 1'260 mm

Group product strategy New products - Folding Carton


FFG 8.20 DISCOVERY Discover the future of box making for a wide range of boxes

EXPERTFOLD 145/165 True control over your corrugated board folding- gluing operation

Asitrade NOVAFLUTE For entering the high quality litho-laminating business

Specifications• 160 to 400 g/m2• 120 m/min• 8'000 s/h• 1'450 x 1'450 mm• 550 x 550 mm

Specifications• Board 8 mm• A-B-C-D-E-AB-AC-BC• 18'000 b/h• 250 x 625 mm• 830 x 2'180 mm

Specifications• A-B-C-E-F-N-BE-BF-EF• 20 to 250 m/min• 25'000 b/h (4&6-corner)• 1700 x 296 mm

Group product strategy New products - Corrugated Board


RS 3.0 Delivering good quality and efficiency for film

Specifications• Chuck• 1'250 mm• 350 m/min• 380 to 940 mm

Group product strategy New products - Flexible Materials

RS 5002 Delivering good quality and efficiency for film, little automation

Specifications• Chuck - Sleeves• 1'250 mm• 350 m/min• 380 to 940 mm


OUR INNOVATION STRATEGY

OUR INNOVATION STRATEGY


TREND 2014


Trend 2014 Evolution of the Group's business

6 mo avg 12 mo avg

• 2014 started with a slightly lower level of backlog than beginning 2013

• Order entries lower than in previous year - stable for BUSF but lower for BUWF

• Estimated backlog end 2014 globally lower than end 2013 (SF stable, WF lower)

• Machines backlog average 4.5 months

2014

Average bookings

2009 2010 2011 2012 2013


Trend 2014 Consolidated turnover evolution

Sales 1'280 1'270

In million CHF

1'264

20122010 2011

1'354

2013

1'055

2009

1'290-1'310

Organic growth

Scope of consolidation

Exchange rate impact

2014


Trend 2014 Operating profit evolution

Published

Underlying

61.3

-4.3

27.5

35.8

19.0

8.3

20122010 2011

60.3

72.6

2013 2014

-175.2

-106.1

2009

Restated

In million CHF


Trend 2014 Consolidated net profit evolution

Published

Underlying

49.3

-1.8

2.5

8.9

-5.0

-13.4

20122010 2011

27.7

36.8

2013 2014

-160.7

-106.5

2009

Restated

In million CHF


OUTLOOK 2015


OUTLOOK 2015• Market and macro economy• Financials• Long-term financial targets


"Navigating around a lot of obstacles in 2015"

• Global economy remains with a lot of opportunities and uncertainties

• Americas should be strong, political situation in Europe and AFME will continue to negatively influence consumption, therefore indirectly our markets. Asia-China continues to grow. We expect quite volatile quarters

Outlook 2015 Evolution of global market for BOBST


Outlook 2015 Business Unit Sheet-fed

** Volatility remains high

Folding carton• Over capacity in mature

markets, good potential in growing countries (e.g SEA - AFME)

• Price pressure increases (offset and converting)

• Drupa effect might occur

Corrugated • Good level of investment

in mature markets, more challenging in BRIC

• Demand continues, large investments last 2 years, some slow down for 2015


Outlook 2015 Business Unit Web-fed

** Volatility remains high

Tobacco• Strong years 2012-13 for

special machines, slow down in 2014-2015

Flexible packaging• Gravure under big pressure

for complex lines, more simple machines

• Flexo will continue its growth at a reasonable pace


Outlook 2015 Evolution of global market for BOBSTBU Services• Customers satisfaction

increases in 2014 over 2013

• Support the launch of the 8 novelties - process knowledge development

• Skills and competencies are key success factors

• Continue to increase field skills

• Roll out of Service core processes in 2015-2016


OUTLOOK 2015• Market and macro economy • Financials• Long-term financial targets


Turnover

Organic growth

2014 2015In million CHF

Outlook 2015 Consolidated turnover evolution (as per Dec. 2014)

Scope of consolidation

Exchange rate impact

Turnover

1'290 - 1'310

1'250 - 1'330

Assumptions:€ 1.21 / $ 0.92Current level of global economy but no recession.

More precise guidance with publication of 2014 results.


Outlook 2015 Operating profit evolution (as per Dec. 2014)

Published

Underlying

61.3

-4.3

27.5

35.8

19.0

8.3

20122010 2011

60.3

72.6

2013 2014

-175.2

-106.1

2009

Restated

In million CHF 2015

Compared to 2014 guidance

Assumptions:€ 1.21 / $ 0.92Current level of global economy but no recession.


OUTLOOK 2015• Market and macro economy • Financials• Long-term financial targets


Assumptions: € 1.20 / $ 0.92 Current level of global economy but no recession.

Operating profit margin and ROCE including impact of IAS 19R application.* Equity ratio excluding impact of IAS 19R application.

Turnover (mCHF)

Operating profit (EBIT) margin

Return on capital employed (ROCE)

Equity ratio *

Payout ratio

Financial ratios

1'300 - 1'400

min. 7%

9 - 12%

~ 35%

30 - 50%

Previous targets

1'400 - 1'500

min. 8%

min. 15%

40 - 45%

30 - 50%

New targets

Outlook 2015 Long-term financial targets


AGENDA 2015


Agenda 2015

February 11, 2015• Publication of the 2014 consolidated turnover• Teleconference for financial analysts and the media

March 17, 2015• Publication of the 2014 financial statements• Conference for financial analysts and the media in Mex

April 29, 2015• Annual General Meeting at 5.00 p.m. in Mex

July 30, 2015• Publication of the half-year results• Teleconference for financial analysts and the media

December 3• Conference for financial analysts and the media in Zurich


Investors and media relations• Giuseppe Santoro• +41 21 621 2560• [email protected]

For more detailed information on Bobst Group, please refer to our websites:

• www.bobst.com• http://investors.bobst.com

Inquiries

www.bobst.com

THANK YOU FOR YOUR ATTENTION!


Bobst Group SA and its affiliated companies operate in a rapidly changing environment. Some of the inherent risks are beyond the control of the company. Certain statements and the material which accompany this presentation by Bobst Group SA are by their very nature forward-looking. The actual results of Bobst Group SA and the consolidated results of Bobst Group may differ materially from those predicted in these presentations. While reasonable efforts have been made to ensure that the information provided in the presentation gives a correct picture of the performance, this presentation is only a summary of the performance of Bobst Group and its affiliated companies. Bobst Group has used reasonable efforts to ensure the accuracy and timeliness of the data included in this presentation as of the day when it is made. Bobst Group SA makes no representation or warranty as to the continued accuracy of the data provided and has no obligation to update the data shown in this presentation, as operational changes may occur as time goes by.

The contents of this presentation are the copyright Bobst Group SA, and may not be reproduced, transferred, or stored without prior written permission from Bobst Group SA.

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CONFERENCE FOR FINANCIAL ANALYSTS AND THE … · conference for financial analysts and the media. zurich, december 3, ... • a-b-c-e-f-n-be-bf-ef ... conference for financial analysts