Koenig and Bauer recently held its first virtual annual general meeting.The management board reported that the coronavirus pandemic, which has been spreading rapidly since January, has already had a considerable impact on revenue and earnings in the current financial year. CEO Claus Bolza-Schünemann: “Our broad product portfolio with a significant share of revenue in system-relevant packaging printing, the robust, increasingly digital service business and our sound balance sheet with a high equity ratio limit the risk potential. With the corona crisis management established in March, we are working to actively counter this extraordinary situation. The health and safety of our employees, customers and suppliers is our top priority. Our action plan focuses on reliable customer support, cost and investment discipline and securing liquidity. There were almost no restrictions on the supply chain. Short-time working has, however, been in place at different locations since 1 April 2020 due to capacity utilisation. Under the currently uncertain general conditions, the impact on revenue and earnings in the 2020 financial year cannot yet be quantified.“
Performance 2024 efficiency programme is flanked by applying for a KfW loan
CEO Claus Bolza-Schünemann: “In parallel to the corona crisis management, we are working intensively on the Performance 2024 efficiency programme, evaluating various scenarios. In addition, improvements in working capital and cash flow are at the top of the agenda alongside the strategic focus on packaging printing and digital services. To strengthen the stability and strategic flexibility of the group, the management board and the supervisory board decided to apply for a flexibly repayable KfW loan with a volume of up to €120m to supplement the existing syndicated credit lines (Direct Participation in Syndicated Loans). Among others, no dividend distributions are permitted during the term of the KfW loan. After the plans for increasing the operating profitability and performance of the group have been adopted, we will report promptly on the targets and costs of the Performance 2024 efficiency programme.”
