Ad hoc: Koenig & Bauer AG: Koenig & Bauer AG: Preliminary financial figures for 2008 and changes at the top

Koenig & Bauer AG / Annual accounts / Ad hoc: Koenig & Bauer AG:
Preliminary financial figures for 2008 and changes
at the top

Ad hoc announcement according to §15 WpHG processed and transmitted
by Hugin. The issuer is solely responsible for the content of this
announcement.

----------------------------------------------------------------------
--------------

The global economic crisis has left its mark on the 2008 balance
sheet of Germany press manufacturer Koenig & Bauer AG (KBA).
Preliminary figures reveal that the group order intake fell to
EUR1,241.5m, 19.7% down on the corresponding figure for 2007.
Below-capacity production levels, particularly at KBA's sheetfed
plants, caused a 10.1% drop in sales to EUR1,531.9m (2007:
EUR1,703.7m). The volume of orders on hand at the end of the year
shrank 36.7% to EUR501.5m. In consequence the group posted an
operating loss of around EUR80m and a pre-tax loss (EBT) of more than
EUR85m. However, there was a modest EBITDA profit of under EUR10m.

An operating profit of more than EUR100m on web and special presses
contrasted with a loss of over EUR180m in the sheetfed division,
where substantial provisions for the proposed restructuring of
domestic and foreign sheetfed production plants and for related
inventory valuation adjustments, write-downs on bad debts and other
remedial measures resulted in a one-off charge in the high
double-digit millions.

Company president and CEO of six years' standing Albrecht
Bolza-Schünemann (57) has resigned with immediate effect from all
offices within the group. Announcing his decision at the March
meeting of the company's supervisory board, he cited the substantial
losses incurred by the sheetfed division in Radebeul near Dresden
last year. His brother Claus (53) is now the sole remaining
representative of the founding family on the KBA board.

Mr Bolza-Schünemann is making way for personnel changes aimed at
turning the division around. The supervisory board accepted his
resignation with the greatest respect and appointed Helge Hansen, CFO
since February this year, his successor both as president and as head
of human resources in Radebeul. Product development has been taken
over by the executive vice-president for production, Dr Frank Junker.

At the end of December there were 7,838 employees on the group
payroll, 398 fewer than in 2007 (8,236). Further reductions will be
necessary at KBA's sheetfed production plants, bringing the total
down to nearer 7,000 by the end of the current year.

Given the present recessionary tendencies in the global economy and
the engineering industry, KBA anticipates a further drop of 20% in
sales. However, barring a renewed slump in demand the scheduled
restructuring, consolidation and cost-cutting initiatives should
enable the group to post a balanced result for 2009. A more detailed
projection will be issued when the 2008 financial statements are
disclosed on April 30.

--- End of Message ---

Koenig & Bauer AG
Friedrich-Koenig-Straße 4 Würzburg Germany

WKN:
719350; ISIN: DE0007193500; Index: SDAX;
Listed: Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin, Prime Standard in Frankfurter
Wertpapierbörse,
Freiverkehr in Börse Düsseldorf, Regulierter Markt in Bayerische
Börse München,
Regulierter Markt in Frankfurter Wertpapierbörse;
Copyright © Hugin AS 2009. All rights reserved.