Koenig & Bauer AG: Koenig & Bauer sets new Group targets for 2017 to 2021

Würzburg (pta029/20.02.2017/18:47 UTC+1) Preliminary figures for 2016 confirm guidance, dividend of EUR0.50 per share proposed
Target for 2017 to 2021: Organic growth of around 4% and EBIT margin of between 4% and 9%; earnings to improve by around Eur70m
Dividend ratio of 15% to 35% of Group net profit going forward; equity ratio to increase to >45%
Settlement of self-disclosure proceedings due to shortcomings in corruption prevention in Switzerland enables optimisation and review of strategic partnerships in the security business

According to its preliminary unaudited figures, Koenig & Bauer achieved revenue of EUR1,167m and order intake of EUR1,150m in 2016. At EUR57m, earnings before tax and positive special items matched the guidance in full.
The revenue target for 2017 to 2021 is an organic growth rate of around 4% p.a. More than half of the targeted revenue growth will be generated in packaging printing, which is expected to expand by an average annual rate of 4% according to internal estimates. Further growth will be generated by the expansion of the service business in all segments as well as by market share gains. As security printing is not expected to generate higher equipment revenues, the company is reviewing growth options including strategic partnerships over the life cycle of the banknote. A further strategic goal is to strengthen the Group's stability by reducing volatility and risk. Earnings stability is to be improved by lifting the share of revenue attributable to services to 30%.
For 2017 to 2021, the Group aims to achieve an EBIT margin of between 4% and 9%, depending on global economy, end markets and on the necessary investments in growth. It is anticipated that earnings will increase by EUR70m following optimisation of the security printing business and growth in services (EUR20m each), the integrated production network, and strategic purchasing
(EUR15m each). Koenig & Bauer is aiming for a dividend ratio of 15% to 35% of net profit. An equity ratio in excess of 45% and net working capital of between 20% and 25% of revenue complete the Group's targets.
The Group also actively reduced its risk profile by settling legal disputes. The Swiss subsidiary responsible for security printing settled proceedings against it in Switzerland through agreement with the Swiss Office of the Attorney General in connection with shortcomings in corruption prevention. By self-reporting, the company had initiated the proceedings itself. A symbolic fine of CHF 1 will be imposed on the Swiss company. In addition, the company accepted the skimming of profits of EUR27.8m from projects between 2005 and 2012 in four countries. This will not have an effect on Group net profit.

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Emitter:	Koenig & Bauer AG Friedrich-Koenig-Straße 4 97080 Würzburg Germany
Contact Person:	Dr. Bernd Heusinger
Phone:	+49 931 909-4835
E-Mail:	bernd.heusinger@kba.com
Website:	www.kba.com
ISIN(s):	DE0007193500 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt, Munich; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Stuttgart, Tradegate