Koenig & Bauer decides to streamline the group structure

Reorganization of corporate structure in Banknote Solutions business unit

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Koenig & Bauer
Koenig & Bauer decides to streamline the group structure

In its meeting today, the Koenig & Bauer AG supervisory board approved the draft concept of the management board for the transformation of the corporate structure in the Banknote Solutions business unit designed with Treuhand KGs into a pure corporation with profit and loss transfer agreements unanimously. President and chief executive officer, Claus Bolza-Schünemann, said, “We have dealt intensively with this structural change and are convinced that this streamlining of the corporate structure will have a positive effect on our group. In addition to strengthening corporate governance and simplifying the management structure, we want to reduce administrative expenses with this reorganization of the corporate structure. We remain committed to our proven broad product portfolio and will continue to further develop and consistently expand it through a large number of initiatives in accordance with market needs.” The agreed reorganization of the corporate structure has, according to IFRS, no effect on Koenig & Bauer group’s earnings, finances, and assets, but the measures significantly strengthen equity in Koenig & Bauer AG’s individual financial statements.

As part of the Fit@All restructuring program, the four business areas Sheetfed, Digital & Webfed, Banknote Solutions, and Industrial, were spun off as of 1 January 2015 in the legal form of an AG & Co. KG with Koenig & Bauer AG as the sole general partner. A corresponding management GmbH, whose shares Koenig & Bauer AG holds 100%, acts as limited partner. The reorganization of the corporate structure in the Banknote Solutions business unit will take place as of 31 December 2020 and includes Koenig & Bauer Banknote Solutions AG & Co. KG and Koenig & Bauer Banknote Solutions (DE) AG & Co. KG. It takes place in each case through the transfer of the assets of the Treuhand KGs to the limited partners Koenig & Bauer Banknote Solutions GmbH and Koenig & Bauer Banknote Solutions (DE) GmbH. This reorganization uncovers hidden reserves, which, according to current estimates, are roughly in the order of magnitude of the annual loss expected in 2020 due to the Corona pandemic, so that no taxes will be triggered. The balance sheet revaluation of the book values of the equity interests enables the capital strengthening of various subsidiaries and, according to current calculations, leads to a one-off income at Koenig & Bauer AG of over EUR100m with a corresponding increase in equity.

The conclusion of the intended profit and loss transfer agreement between Koenig & Bauer AG and Koenig & Bauer Banknote Solutions GmbH still requires the approval of the annual general meeting in May 2021. A reorganization of the Treuhand KGs in the other business areas will be further analyzed in the next few years, taking the business development into account.

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

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