Presentation Roadshow Paris - Mühlbauer Group

Roadshow Paris
5 November 2010
Hubert Forster, CFO
www.muehlbauer.de
info@muehlbauer.de
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 1

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 2

Mühlbauer at a Glance
Independent Technology Partner
Technological
know-how
combined
Market
know-how
• World market leader in equipment for Smart Identification
• The only company worldwide which offers complete turnkey solutions to the market
• Intensively involved in more than 300 ID projects worldwide
• Sales and service on-site – always close to our clients
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 3

Company facts
Benefit from a strong background
General
• 2.200 employees on more than 30 locations worldwide
• Approx. 400 engineers in research & development
• Currently more than 350 trainees in the company
• High standards of sustainability and social commitment
Investment
• Technology & buildings: appr. EUR 165 million
• Research & Development: appr. EUR 155 million
Financial
• Sales 2009:
EUR 160.5 million
• EBIT margin 2009: 6.0%
• Equity ratio 2009: 77.9%
• Financial independence
Market
Position
• The world’s leading system partner for the complete
technology and know-how-transfer for the production of
smart ID documents
• Turnkey solution provider of RFID Smart Label technology
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 4

Company facts
Worldwide close to our customers
Headquarters in Roding
and seven further technology
centers in Germany
Technology center in
Newport News, USA
Technology center in
Melaka, Malaysia
Technology center in
Nitra, Slovakia
• Continuation of the internationalization of the
Group
• Establishing of new sites in Shanghai, Turkey
and Uganda
• Production on three continents
• Know-how-transfer from Germany guarantees
the same proven quality within the Group
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 5

Company facts
References in growing markets
Government
Customers
Smart Card
references
ePassport
references
• Long-term business relations
with world market leaders
• Independent from individual
suppliers, customers or
markets
• As partner of many
governments Mühlbauer is
the first choice for further ID
projects
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 6

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 7

Company facts
Business fields of the Mühlbauer Group
Cards & TECURITY ®
Smart Card
• IC module & inlay production
• Card and Smart Card production
• Personalization & mailing
ePassport
• IC module & inlay producion
• Holder page production
• Booklet production
• Personalization & mailing
Systems & Solutions
• Data enrollment
• Border crossing / verification
• Access control
• Vision inspection solutions for
security industries
Semiconductor Related Prod.
Semiconductor
Backend
• Die sorting/die bonding
• Flip chip bonding
• Carrier tape forming
• Inspection solutions
Smart Label
• RFID transponder production
• Converting & inserting
• Testing & personalization
Traceability
• Marking & laser
• Automation & Boardhandling
Solar
• Thin film solar cell
• Concentrator solar cell
technology
Precision Parts
• CNC-milling
• CNC-turning
• Eroding & Grinding
• Sheet metal working
• Welding processing
• Surface treatment
• Quality assurance
• System assembly
• Product realization
• Process management
high technology and market competence
state of the art infrastructure and powerful team
full commitment and responsibility towards customers
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Investor Relations – R15
November 2010 – Mühlbauer Group – Page 8

Cards & TECURITY ®
Complete turnkey solutions
• As the only company in the world Mühlbauer supports governments and authorities
by the complete technology & know-how transfer in respect of the realization of ID
projects
• Technology portfolio ranges from data enrollment technology to Smart Card/ePass
production and personalization systems through to fully automatic access control –
including software solutions
• Involved in government projects on all continents; e.g. in ePassport, ID Card, driver’s
license and health card projects
• Market increasingly relies on unique business model and system solution orientation
with the result of more and more large scale orders with complete responsibility
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Investor Relations – R15
November 2010 – Mühlbauer Group – Page 9

Semiconductor Related Products
Allowing flexibility
RFID Smart Label
Semiconductor
Backend
Traceability
Solar
• RFID: With a market share of 80% Mühlbauer is the world market leader in the
manufacture of complete production solutions for RFID Smart Labels & conversion to selfadhesive
label or RFID ticket
• Semiconductor Backend: Mühlbauer focuses on promising niches of the semiconductor
market – product portfolio comprises Die Sorter, Flip Chip Bonder and Carrier Tape
solutions
• Traceability: Mühlbauer is a specialist for boardhandling, marking systems as well as
automation solutions and provides an important contribution to greater production safety
• Solar: Developing of complete solutions for the production of concentrator solar cells and
future technologies for automation of thin film solar processes
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 10

Precision Parts & Systems
Guarantee reliability
Stollberg Roding Nitra (Slovakia)
• State of the art production centers on three independent manufacturing sites for the
production of precision parts
• Mühlbauer produce for own requirements as well as for external customers in
sophisticated industries such as aerospce, motor sports, medical technology and the
semiconductor industry
• As specialist for all production steps from a single source Mühlbauer provides
customers highest quality and highest flexibility
• State of the art machines and high qualified staff form the basis for the competence in
PPS
• Through local production on different sites Mühlbauer utilizes specific location
advantages
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 11

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 12

Financial year 2009
Sales
EBIT / EBT
200
175
150
172.9
-7.0%
160.8
19.4
12.7
17.7 5.8
PPS
Traceability
SRP
C&T
30
24.3 24.4
2008
2009
125
34.9
29.5
20
100
75
50
100.9
112.8
10
9.6 9.7
25
0
2008 2009
0
EBIT
EBT
40
35
30
25
20
Free cashflow / Liquidity
35.1
25.8
2008
2009
• Core business Cards & TECURITY ® recorded further
growth, but could not fully compensate for declining
industrial business
• EBIT dropped due to higher cost of sales in respect of
depreciation and a further increase in legal costs
15
10
5
6.3
3.3
• Lower earnings and higher investment expenditures
resulted in decline in free cashflow by EUR 3.0 million
0
Free cashflow
Net cash position
• High liquidity ensures financial independence
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 13

Figures Q3/2010
Order income
Development of order income
Figures in million EUR Q3/2010 Q3/2009 +/- % 9m/2010 9m/2009 +/- %
Cards & TECURITY ® 35.3 33.8 +1.5 4.4 159.8 93.5 +66.3 70.9
Semiconductor Related
Products
15.9 6.5 +9.4 144.6 48.8 22.6 +26.2 115.9
Traceability 4.6 1.2 +3.4 283.3 8.8 3.0 +5.8 193.3
Precision Parts & Systems 7.0 3.3 +3.7 112.1 18.5 9.0 +9.5 105,5
Total 62.8 44.8 +18.0 40.2 235.9 128.1 +107.8 84.2
82.4
Order backlog
+88.8%
155.6
• Core business area Cards & TECURITY ® showed
another increase to EUR 35.3 million due to government
orders for the implementation of ID projects
• Semiconductor related area rose 144.6% and benefited
from the increasing acceptance of the RFID technology
and the ongoing high propensity to invest in the
semiconductor backed industry
• Orders in Traceability & PPS increased due to the
sustained positive industry development
Q3/2009 Q3/2010
• Order backlog with EUR 155.6 million still at a high level
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 14

Figures Q3/2010
Sales
Development of sales 1
Figures in million EUR Q3/2010 Q3/2009 +/- % 9m/2010 9m/2009 +/- %
Cards & TECURITY ® 35.6 29.8 +5.8 19.5 93.2 87.9 +5.3 6.0
Semiconductor Related
Products
11.0 7.2 +3.8 52.8 33.2 21.9 +11.3 51.6
Traceability 2.4 1.7 +0,7 41.2 5.8 4.2 +1.6 38.1
Precision Parts & Systems 5.6 3.1 +2.5 80.6 15.3 9.3 +6.0 64.5
Total 54.6 41.8 +12.8 30.6 147.5 123.3 +24.2 19.6
1 gross values before subraction of any deductions on sales
proceeds
Regional Sales Breakdown (Q3)
Europe
11.4%
Asia
Africa
29.3%
America
27.4%
31.9%
• Strong demand in all business areas results in 30.6%
higher sales yoy
• At EUR 35,6 million Cards & TECURITY ® contributed
the largest share in volume in Q3 and achieved an
increase of 19,5%
• PPS contributed a total of EUR 5.6 million and, at
80.6%, achieved the highest growth in percent
• With regard to the regional sales breakdown Asia
overtook the continent Europe as largest export region
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 15

Figures Q3/2010
Earnings
Figures in million EUR Q3/2010 Q3/2009 +/- % 9m/2010 9m/2009 +/- %
Net sales 54.5 41.7 +12.8 30.7 147.3 123.0 +24.3 19.8
Gross profit 22.0 14.9 +7.1 47.7 58.3 43.9 +14.4 32.8
EBIT 11.4 2.4 +9.0 375.0 27.6 7.5 +20.1 268.0
EBT 11.5 2.4 +9.1 379.2 27.9 7.5 +20.4 272.0
Net earnings 9.2 1.8 +7.4 411.1 21.8 5.4 +16.4 303.7
Earnings per share in EUR 0.63 0.12 +0.51 425.0 1.50 0.36 +1.14 316,7
2010
2009
Free cashflow
24.6
• Due to significant sales growth and favourable
operating leverage EBIT rose to EUR 11.4 million with
a margin of 20.9% compared to an adjusted EBIT of
EUR 4.2 million yoy
10.4
.
• Net income further benefited from a lower tax rate
(19.9% vs. 27% for 2009) – as a result EPS was more
than five-fold higher yoy
Q3
8.0
Q3
9m
3.2
9m
• Based on strong results and the reduction of working
capital free cashflow in 9 months rose considerably to
EUR +24,6 million (PY: EUR +3.2 million) despite
higher capex
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 16

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 17

The Mühlbauer share
Key data related to shares 2009 2008
Number of shares (in million) 14.7 14.7
Share price (Xetra) 1 (in EUR) 17.15 17.40
Earnings per share (in EUR) 0.50 1.24
Dividend (in EUR) 1.00 1.00
Dividend yield 1 (in %) 5.8 5.7
Market capitalization 1 (in EUR million) 252.0 255.7
Equity ratio (in %) 77.9 77.5
1 year end
Share development (Jan 2010 – Oct 2010)
Dividend development (in EUR)
160%
140%
Mühlbauer
Tecdax
1,4
1,2
1,0
0.90
1.25
1.00 1.00 1.00
120%
100%
0,8
0,6
0,4
0.30 0.35 0.30 0.30 0.35 0.60
80%
0,2
60%
J F M A M J J A S O
0,0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 18

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 19

Market potential
Key driver for Cards & TECURITY ®
Cards & TECURITY ®
Security and flexibility
New standards
e.g. by ePassport, eGovern-
e.g. biometric, contactment,
innovative security
less identification
features
Global Smart Card market (in billion of units)
New laws and regulations
e.g. US-Visa-Waiver-Program,
ICAO Standards, EU Regulation
ePassports and innovative ID Cards become a standard worldwide
Source: RNCOS
5.5
CAGR
11%
8.5
• Continuous growth due to increasing application
of smart card in different sectors
• Governments and authorities replace conventional
ID documents by innovative smart
cards or ePassports
• EMV standard is driving many banks to issue
smart cards
2009 2013
• Further growth in GSM/SIM cards due to high
demand in developing and emerging countries
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 20

Semiconductor Related Products
Market potential
Key driver for Semiconductor Related Products
RFID
Backend
Traceability
Solar
Optimization of
logistics and
security
Continuous
trend regarding
to miniaturize of
chips (Dice)
More product
security and
improvement of
efficiency through
automation
Pushing of
renewable
energy
production
RFID market (in bn US-$)
5.8
8.2
CAGR
15%
12.8
17.0
20.0
24.0
2011 2013 2015 2017 2019 2021
Quelle: nach IDTechEx, RFID Forecast
• Overall RFID market continues to grow
• RFID will increasingly used in supply chain
management, ticketing and apparel industry
• Following forecasts RFID should gain
importance in retail and consumer goods from
2013
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 21

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 22

Outlook
Cards & TECURITY ® Semiconductor Rel. Products Precision Parts & Systems
• Growth prospect of the TECURITY ®
market is unchanged
• Customers pay more attention to Mühlbauer
due to its unique business model
as experienced key solution provider
• Mühlbauer will enlarge its market
penetration in the system business by
extending its value chain and further
internationalization
• Rise in demand for RFID
projects in supply chain
management and in the apparel
industry
• Intensification of market penetration
to exceed the market
growth in the Semiconductor
and Smart Label industry
• Further expansion in market
niches with growth potential
• Mechanical engeneering
industries should retain
positive market development
• Market diversification to
broadening the customer
base
• Reinforcement of sales
activities and extension of
international market position
Continuous investment to streamline the organisation, increase flexability and efficiency and position the
company even better in the future. Mühlbauer is planning investments of approx. EUR 28 million for 2010, of
which EUR 15.9 million were already completed to the end of Q3 2010
Mühlbauer raises its earnings forecast – Based on the strong order situation, Mühlbauer is now expecting to
achive sales of at least EUR 195 million and an EBIT rate of approx. 18% in 2010. Provided that the general
economic conditions are not impaired, the company is expecting sales and earnings to rise even further in 2011
Responsible management ensures a sustainable business development – continuing of an earnings oriented
dividend policy
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 23

Content
1. Base
2. Competence
3. Figures
4. Share
5. Market potential
6. Outlook
7. Financial calendar and contact
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 24

Financial calendar and contact
Financial calendar:
22 November 2010 German Equity Forum (Frankfurt)
2 December 2010 European Conference 2010 (London)
16 March 2011 Annual Report 2010
28 April 2011 Annual General Meeting
Contact:
Mühlbauer Holding AG & Co. KGaA
Investor Relations
Josef-Mühlbauer-Platz 1
93426 Roding, Germany
Phone: +49 9461 952 - 1653
Fax: +49 9461 952 - 8520
Email: investor-relations@muehlbauer.de
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 25

Disclaimer
This information is provided without guaranty or warranty. While the
information provided is believed to be accurate, it may include errors or
inaccuracies. In no event shall Mühlbauer be liable to any person for any
special, indirect or consequential damages relating to this material.
This presentation contains statements that are projected into the future;
statements that are based not on historic facts but rather on current
plans, assumptions and estimates. Future-oriented statements are only
applicable to the period in which they are established. Mühlbauer accepts
no liability to revise these once new information becomes available.
Future-oriented statements are always subject to risk and uncertainty. We
therefore wish to point out that a range of factors can impact the actual
results and situation to the extent that these deviate considerably from
mentioned figures, estimates and statements.
www.muehlbauer.de
Investor Relations – R15
November 2010 – Mühlbauer Group – Page 26