Worldwide leading supplier of equipment and services to packaging manufacturers in the folding...

Worldwide leading supplier of equipment and servicesto packaging manufacturers in the folding carton,corrugated board and flexible materials industries

Zurich, December 8, 2010Slide 2 © Bobst Group SA

Review 2010

How do we enter 2011

Agenda 2011

Questions and answers

Estimation 2010

Conference for financial analysts and the mediaZurich, December 8, 2010

Outlook 2011


Review 2010

Macro economy

Main events 2010

Markets trends

Group Transformation Program

TEAM & LEAN


Macro economy

Review 2010

Global situation is improving since 2009, investment at a higher level. However industrialized countries are not out of the crisis (GDP still too low to create enough jobs)

Exchange rates create new "financial turmoil"

Market growth is mainly in BRIC and emerging countries, industrialized countries still strugglingfor growth


Main events 2010 - H1

Good start with a backlog higher than one year before

Business Units organization since 1st January

March: TEAM project for CHF 180m

April: first presentation of the new Fischer & KreckeFP 15S

May: Celebration of 50th anniversary of Rotomec

May: Celebration of 50th anniversary of BHS

Group Transformation program costs on schedule

Review 2010


Main events 2010 - H2

Exchange rates create "new financial" challengesfor the Group

Price pressure even higher, product mix unfavorable, high volatility! Higher impact than expected

October: acquisition of 65% of Gordon Ltd., Hong Kong – one of the leading players in China for folding carton and corrugated industry (closing Q1 2011)

October: management buy out of Atlas Converting Equipment, Bedford/GB - brands Atlas et Titan forthe flexible materials

Review 2010


Main events 2010 – H2

December: Announcement of Group Executive changes; Stephan März to become new executive member for BU Services

Review 2010


Main events 2010

Selected open houses and exhibitions

April: Sino Folding Carton 2010, Dongguan, China

May: IPEX 2010, Birmingham, England

May: Rotomec open house, San Giorgio, Italy

September: COMPETENCE'10, Mex, Switzerland(626 companies, 2000 visitors and 57 countries)

Review 2010


BU Services

Stephan März, to become new executive member forBU Services

Increase momentum in BU Services evolution

Continue Group Transformation with our matrix organization; increase effectiveness

Company seeking for "Process Excellence"

Review 2010


Global accounts position

Review 2010

Claude Currat new responsibility

Increase strategic exchanges with global accounts WW as well as with end users and trend setters

Continue to develop and improve the Bobst Group WW network in all 3 industries

Improve branding and communication strategy


Review 2010

Trends in the Group’s customer markets

Folding carton industry

Shipments 2010 vs 2009 & 2008 Turnover 2010 vs 2009

Sources ECMA & PPC

Overall, customers report an increase in activity of 5 % in 2010 vs 2009

US market: 0.9% increase vs 20090.8% increase vs 2008

Europe: 3.0% increase vs 20092.1% decrease vs 2008

Profit outlook 2010

Increasing carton board prices (+15% to +30%in Europe since beginning 2010)Main drivers: healthcare, dry/frozen food & ready meals2010-2014 Consumption growth of 5.3% (CAGR) expected worldwide (9.5% in BRIC)(Pira International)

Investment - Closure 2010 vs 2009

Plant closures seem to have slowed down in comparison to 2009Consolidation might continue



Shipments 2010 vs 2009 & 2008 Turnover 2010 vs 2009 & 2008

US market: 3.3% increase vs 20094.4% decrease vs 2008

Europe: 4.5% increase vs 200915% decrease vs 2008

Profit outlook 2010Investment - Closure 2010 vs 2009

Plant closures seem to have slowed down compared to 2009DS Smith took over Otor in France making them 2nd biggest in this country

US market: expected recovery in 2010 butnot compensating drop of 2009

Europe: 1.5% increase vs 200933% decrease vs 2008

(corrugated and some sheet plants)

Corrugated industry

Review 2010

Restructuring 2009 continued to improve profitabilityIntegrated groups benefit from paper price increases(up to 50%)Main drivers: processed food, electrical goods and personal & household careConsumption growth of 4.7% (CAGR) expected worldwide (9.4% in BRIC) between 2010 and 2015 (Pira International)



Shipments 2010 vs 2009 Turnover 2010 vs 2009Remains at good level

Profit outlook 2010Investment - Closure 2010 vs 2009North America: consolidation continueEurope: international groups are planning to close some plants for rationalization and move East of EuropeCIS: investment continue with newcomersin converting Asia: heavy investment in film line mainlyin China and India

North America: increase 2 to 5%South America: strong increase in volumeSup +12%Europe: average recovering +3% ME: 5 to 7% increase vs 2009Asia: 4 to 8% increase

Flexible materials industry

Review 2010

Input costs are rising faster than sellingprices can be transferred down the supply chain (example: strong price increase inPET, BOPP)


Group Transformation Program - Main objectives

Increase customer satisfaction

Increase market coverage and improve sales motivation

Achieve break-even as soon as possible

Get CHF 100 million savings by 2011 run rate

Operationalexcellence Growth Effective

Organization

Break-even assoon as possible

Return to pre-crisis growth dynamics

Customer orientation Seek for Internal

effectiveness

Review 2010


Group Transformation Program - Current situation

Review 2010

Operational excellence GrowthServices

Services activities and organization implementedas of March 10. Volume increase satisfactoryPriorities: first customer service and local support, second volume increase

Medium segmentAcquisition of Gordon (10.2010), new developments 2011

Technical organization achieved, technical synergies not done yet (2 years), process excellence and efficiency (2011)Technical development priorities set upShared Service Center implemented in Europe, North America (lower scale than foreseen)Standardization projects started September

RisksLegal constraints and laws might slow down transformation process Volume increase "versus" cost reduction/optimizationChoice between growth/market share and profitabilityLoss of competences

Effective OrganizationLean production (PHOENIX) validated and launched. Supplier network is the main challengeProduction footprint continues to evolveModus Operandi defined.

Not efficient enough yet (see 2011 objectives)Focus on Business Excellence (simplify)


Review 2010

September, official inauguration of the extension works site Mex / Lausanne area (TEAM Project –Switzerland – CHF 180m)

TEAM project (Tous Ensemble A Mex)


Review 2010


Site of Mex today

…and in 2012


Review 2010


Production Hall10'200 sqm


Review 2010

LEAN Production - PHOENIX AmbitionsThe main focus of PHOENIX is to eliminate systematically waste from the date we receive the customer order until the customer has accepted the equipment (paid)To maximize customer satisfaction we focus all our efforts on reducing total lead time

Current situation "PE Bloc Platine" General Situation before PHOENIX


Review 2010

OpportunitiesAccelerate changesCreate platform, use standards componentsand develop supplier networkDevelop adequate competences and skills

RisksChange management (train, keep key people)Supply chain needs to be "best in class"Sales and R&D processes should also be lean

LEAN Production - PHOENIX Ambitions


Review 2010


Agenda 2011


Estimation 2010


Outlook 2011


Evolution of the Group's business

Estimation 2010

2010 started with higher level of backlog than beginning 2009

Backlog endJuly 201040% higher thanbeginning 2010

End November2010 backlogcomparablelevel to July 2010

Evolution of bookings

6 mo avg 12 mo avg


Consolidated turnover evolution

Estimation 2010

1'604

1'744

1'633

2006

2007

2008

2009

Organic growthScope of consolidationExchange rate impact

2010 1'250 – 1'300

1'055

In m

illion

CH

F


Operating profit evolution

Estimation 2010

Published

177.4

86.0

2007

2008

2009

2010

-175.2

120.12006

177.4

111.7

-106.1

114.7Underlying

In m

illion

CH

F

Positive Slightly negative


2010 Positive Negative

Consolidated net profit evolution

Estimation 2010

Published

129.8

55.9

2007

2008

2009 -160.7

103.32006

129.8

74.9

-106.5

80.6Underlying

In m

illion

CH

F


Targeted savings

Accounted costs

70-80

~102011

80-100

2012

Group Transformation Program in numbers

In m

illio

n C

HF

6.3

652009

8-102010

Cash impact of costsin given year 10-20 0-1022 48-58

50-60

0

Estimation 2010


Divestment Prilly

Buildings

Total20

-42

-132012

65.5-10

2013

-7

2014

TEAM in numbers

9.5-40

-352010

Net Cash effect -22 55.5 -7-30.5

-81

-602011

-81

Installations -29 -10 -7-5 -21

Estimation 2010In

mill

ion

CH

F


Review 2010


Agenda 2011


Estimation 2010


Outlook 2011


Worldwide


Consumption level, which is lower than 2006-2008, will remain "stable" or "slightly inferior"

GDP still too low to recover from 2008-2009 crisis

Exchange rates uncertain and unpredictable

=> No clear trend for the machine industry


In our markets


Investment mood still volatile

No clear view if countries/government will continueto support economy, specially in Europe

Market growth in emerging countries as well as in services will not compensate past volume reductionin industrialized countries


Focus on core businessSeek for Business ExcellenceAdjust footprint – reduce break even Manage closely market share -Margins - WIP & cashRetain and develop best skills

To face these challenges


Group Transformation program is the right strategy

Program continues for next years

Increasing performances

Clear priorities set

Five Priorities


To face these challenges - 2011 Objectives


Tbd2012Service full potentialMedium segmentGrowth markets

2011Focus on core businessSeek for Business ExcellenceAdjust footprint – reducebreak even Manage closely marketshare - margins - WIP & cashRetain, get and develop best skills

2010Simplifi-cationDecisionsLeadershipServiceLean

2009SynergiesCOGSG&A

Quality& Growth

Quality& Growth

CustomerOrientationQualityEffective

OrganizationOperationalExcellence

Growth potentialPlatform buildCrisis - correction

"modusoperandi"


Review 2010


Agenda 2011


Estimation 2010


Outlook 2011


2008 20102006

1'700

900

In m

illion

CH

F

Potential Group turnover (as per December 2010)

1'900

1'500

1'300

1'100

2007 2009 2011

Actual

Scenario LoScenario Hi

Outlook 2011

1'300

1'250

1'055

1'400

1'300


Consolidated turnover evolution

Outlook 2011

Turnover 2010

Turnover 2011

Vision 2011

Organic slow growth

Scope of consolidation

Exchange rate impact ???±

~ CHF 1'300 - 1'400 million=

(More precise guidance with publication of 2010 results)

±

+ Gordon Ltd. (ETERNA)ATLAS


Operating profit evolution

Outlook 2011

Published

177.4

86.0

2007

2008

2009

2010

-175.2

120.12006

177.4

111.7

-106.1

114.7Underlying

In m

illion

CH

F

Vision 2011

Profit Slightly negative


Agenda 2011

February 15 Publication of the 2010 consolidated turnoverTeleconference for financial analysts and the media

March 30 Publication of the 2010 financial statementsConference for financial analysts and the media in Prilly

May 4 Annual General Meeting at 5.00 p.m.at the Palais de Beaulieu in Lausanne

September 1 Publication of the half-year resultsTeleconference for financial analysts and the media

December 7 Conference for financial analysts and the media in Zurich


For more detailed information on Bobst Group,please refer to our website www.bobstgroup.com

Investors and Media Relations+ 41 (21) 621 [email protected]

Inquiries


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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