The following section describes the main opportunities available to the Koenig & Bauer Group. In the absence of any indication to the contrary, these affect all segments equally. However, they represent only a selection of the opportunities available to us. The order in which the opportunities are presented reflects the assessment of their relative significance for the Koenig & Bauer Group and provides a basis for assessing them. The assessment of opportunities is also subject to continuous change, as our Company, the technology we use, our markets and our customers are constantly evolving. New opportunities may arise from this, existing ones may cease to exist or the significance of an opportunity may change.

We see the greatest opportunities for Koenig & Bauer in the printing industry itself. Above all else, we have opportunities for improving our business performance by harnessing the development potential of special applications, such as packaging and industrial printing, the growing importance of digital printing in the packaging sector in the future and the transformations that we expect to continue emerging with regard to digital products, processes and services. Looking forward, we will continue to work intensively on expanding our service business. We are trying to take advantage of additional opportunities, by structuring our service with a focus on digitalisation. These aspects are expressly addressed by our “Exceeding Print” strategy, which aims to make the Group more sustainable, digital and modular. Further information can be found in “Goals and Strategy” on page 22. Opportunities for growth may also arise from gains in market share if a competitor exits the market or abandons an area of business.

Acquisitions and alliances
We continuously monitor our current and potential markets to identify opportunities for strategic mergers, acquisitions, investments and partnerships that we can use to complement our organic growth. These activities could help Koenig & Bauer to strengthen its position in our current markets, to open up new markets or to complement our portfolio in strategic

Macroeconomic and cyclical opportunities
In particular, the containment of the coronavirus would spur the recovery of the global economy and, along with it, the printing industry. This would also be aided by an easing of the current procurement and transport situation as well as energy costs. In a number of countries there are also opportunities for social and political changes, government intervention, customs regulations and legislative amendments that may have a positive impact on the Koenig & Bauer Group’s business performance. The recent legislative measures and government action to accelerate the response to halt global climate change, especially in Europe, through the Green Deal, are a recent example of this.

Planning, control and monitoring
The forecasts of our future business performance are based on assumptions that are subject to certain uncertainties. In addition to the risks already described, they also entail opportunities. Higher revenue than that assumed for budgeting purposes, a more advantageous cost situation and overachievement of the savings targets defined by the P24x efficiency programme would have a positive impact on earnings.

Financial opportunities
A shift in exchange rates in our favour would have a positive impact on the Koenig & Bauer Group’s revenue and earnings performance. In a favourable capital market environment, an increase in the discount rate for future retirement benefits (as well as the performance of plan assets) offers an opportunity for reducing provisions for retirement benefits and similar obligations and for an increase in equity due to actuarial gains.

Summary of the situation with respect to opportunities
We view the overall situation with regard to opportunities as moderate. Even though the macroeconomic conditions are duly factored into our expectations and business plans, we do not believe that the opportunities presented here outweigh the risks described above given the protracted uncertainties in connection with Covid-19, the associated risks in the supply chains and mounting geopolitical tensions. There are no changes in the opportunities available to the Koenig & Bauer Group compared with the previous year.