Krones Ag · XETR:KRN
Krones — FY2019 Earnings Presentation
29 slides from Krones's earnings presentation, Mar 19, 2020
Slide 1: Krones Conference Call
KRONES Conference Call March 19, 2020 Christoph Klenk, CEO Norbert Broger, CFO
Slide 2: Recap 2019
2 ｜KRONES Conference Call March 19, 2020 Recap 2019
Slide 3: Krones Achieves Targets for 2019
3 ｜KRONES Conference Call March 19, 2020 Krones Achieves Targets for 2019 Despite difficult overall economic conditions, consolidated revenue increased in 2019 by 2.7% to €3.96 billion. Order intake, at €4.08 billion, was up 3.2% year-on-year. EBT margin without one-time restructuring impacts at 2.8
Slide 4: Krones Highlights 2019
4 ｜KRONES Conference Call March 19, 2020 Krones Highlights 2019 +3.2% 4,084m€ 3,959 Revenue (+2.7%) m€ New orders Free cash flow -94.4 1.1% m€ (PY +120.7m€) 41.7m€ EBT margin
Slide 5: Revenue Growth Reached our Target – Strong Order Intake, Especially in Q4
5 ｜KRONES Conference Call March 19, 2020 Revenue Growth Reached our Target – Strong Order Intake, Especially in Q4 4,084 3,959 3,957 +3.2% +2.7% 3,854 1,126 1,017 +10.7% 1,069 1,161 -7.9% 925 919 -0.6% 1,000 902 +11% 997 1,022 906 -2.5% 899 +1% 1,042 984 993 892 +5% +10% 2018 2019 2018 2019 New orde
Slide 6: Krones' Revenue Split Remains Well Balanced
6 ｜KRONES Conference Call March 19, 2020 Krones‘ Revenue Split Remains Well Balanced Share of revenue (Q1 – Q4) Europe 2017 2018 2019 CIS/Central Asia 36.1 % 38.8 % 38.8% 2017 2018 2019 1.5 % 2.1 % 1.9% China North America 38.8% 2017 2018 2019 2017 2018 2019 33.3% 3.7% 6.9 % 7.5% 8.1% 14.8 % 13.8% 1
Slide 7: EBT affected by 71m€ One-Time Costs and Structural Measures
7 ｜KRONES Conference Call March 19, 2020 EBT affected by 71 m€ for One-Time Costs and Structural Measures − EBT 2019 affected by high personnel expenses, negative product mix impact in the first half year and 305.9 71m€ one-time costs for restructuring and portfolio 260.0 optimization. 204.3 99.8 22
Slide 8: Dividend payment
8 ｜KRONES Conference Call March 19, 2020 Dividend payment Payment (in m€) for Fiscal Year Dividend per Share (in €) for Fiscal Year 63.2 53.7 53.7 1,00 1.00 1.70 1.70 53.8 1.55 45.8 1.45 +0% +10% 39.5 1.25 +7% +16% -53% 1.00 22.6 23.7* 0.75 +25% 0.75* +33% 2012 2013 2014 2015 2016 2017 2018 2019 201
Slide 9: Actual Situation and Outlook 2020
9 ｜KRONES Conference Call March 19, 2020 Actual Situation and Outlook 2020
Slide 10: Krones Targets 2020
10 ｜KRONES Conference Call March 19, 2020 Krones Targets 2020 Revenue growth EBITDA margin Working capital 0% ~ 6.7-7.2% 26% Comparable to EBT margin ~ 3.2-3.7% Figures based on the effects of the Corona-virus with information as of early March. Due to global developments surrounding the Corona-viru
Slide 11: Development Sales and EBT per Segment
11 ｜KRONES Conference Call March 19, 2020 Development Sales and EBT per Segment Segment Sales (EURm) FY 2019 EBT (EURm) FY 2019 Targets 2020 *** Targets 2020 *** Product filling Growth EBT margin and decoration +5% +3% +2.8% Growth 3,090 3,178 3,265 0% 8.5% 7.0% 1.7% EBITDA margin 263.3 223.3 56.4*
Slide 12: The Corona Crisis and its Impact on Krones' 2020 Revenue and Earnings Forecast
12 ｜KRONES Conference Call March 19, 2020 The Corona Crisis and its Impact on Krones’ 2020 Revenue and Earnings Forecast Corona unknown December 2019 3% growth Corona in China and 7.5% EBITDA margin first other countries (4.0% EBT margin) January - Early March 2020 Further growth based 0% growth on
Slide 13: Actual Corona Situation at Krones
13 ｜KRONES Conference Call March 19, 2020 Actual “Corona Situation" at Krones CHINA ▪ Operations back at 80% ▪ Travel activities of the service technicians limited ▪ Order Intake clearly behind plan ITALY ▪ System Logistics in closed zone, Operations 90 % ▪ Kosme Italy in closed zone, Operations at
Slide 14: Banking Crisis 2008 versus Corona Situation 2020
14 ｜KRONES Conference Call March 19, 2020 Banking Crisis 2008 versus Corona Situation 2020: Different Impacts for Krones Banking Crisis 2008 Corona Crisis 2020 ▪ Dramatic slow down of order intake for new machine ▪ Similar expectation for uncertain period of time business (>20%) (3 months up to?) ▪
Slide 15: Latest update Corona Crisis at Krones and Measures taken
15 ｜KRONES Conference Call March 19, 2020 Latest* update Corona Crisis at Krones and Measures taken 1. Measures to minimize the risk of infection for employees, suppliers, service providers, customers and visitors 2. Maintaining the business operations of Krones AG worldwide (business continuity), t
Slide 16: Overview on Krones Crisis Plan Corona
16 ｜KRONES Conference Call March 19, 2020 Overview on Krones Crisis Plan „Corona“ Health / HR / Business Continuity Communication Securing Results Administration Crisis Mgmt. Team* CEO, HR, Safety, CC, CEO / Head of Head of FI / Company Doctor, CG, IT- Executive Board Public Relations Head of CO Inf
Slide 17: Mid-Term Perspectives
17 ｜KRONES Conference Call March 19, 2020 Mid-Term Perspectives
Slide 18: Krones Mid-Term Targets
18 ｜KRONES Conference Call March 19, 2020 Krones Mid-Term Targets Revenue growth EBTIDA margin Working capital 2-5% 9-12% 22-24% Comparable to EBT margin 6-8%
Slide 19: Continued Growth in Beverage Consumption
19 ｜KRONES Conference Call March 19, 2020 Continued Growth in Beverage Consumption Main factors: per capita consumption and/or population growth Litres per Beverage consumption 2019 Ø-Consumption growth in % Growth per capita Ø-Population growth in % capita 2019 in million litres consumption until 1
Slide 20: Customer Requirements: Krones Value Drivers
20 ｜KRONES Conference Call March 19, 2020 Customer Requirements: Krones Value Drivers Solutions that focus on generating value for our customers make Krones the SAFE choice among F&B machinery suppliers Safe & Secure Affordable ▪ Product safety ▪ Maximum OEE ▪ Product quality ▪ Smart system ▪ Produc
Slide 21: Customer CAPEX Rationale
21 ｜KRONES Conference Call March 19, 2020 Customer CAPEX Rationale Top 5 Investment Motives Decision Making Criteria Organic Growth of Beverage Sales CAPEX 1 Higher output requirements necessitate additional or faster equipment Up-Front Investment for Machinery OPEX Venture Investments Utility consu
Slide 22: Climate Change: Challenges create Opportunities
22 ｜KRONES Conference Call March 19, 2020 Climate Change: Challenges create Opportunities World Economic Forum 2020 Customer commitments to reduce 2Calculation: Food & Beverage constitute 16% of total segment “Industrial Energy Efficiency Solutions” 1Source: Bundesministeriums für Umwelt/ Roland Ber
Slide 23: Emphasis on Sustainable Packaging by Region
23 ｜KRONES Conference Call March 19, 2020 Emphasis on Sustainable Packaging by Region Consumer Awareness: Regulation: Consumer Awareness: Regulation: Consumer Awareness: Regulation: Consumer Awareness: Regulation: Consumer Awareness: Regulation: Consumer Awareness: Regulation: Low emphasis High emph
Slide 24: Realizing Mid Term Targets
24 ｜KRONES Conference Call March 19, 2020 Realizing Mid Term Targets − 2022/2023 When? (under regular market conditions; no crisis situation like „Corona“ 2020) − Successful execution of 2019 published measures in 2019 (✓) and 2020 How? − Additional profit improvement initiatives to stabilize and in
Slide 25: Krones Mid-Term Targets
25 ｜KRONES Conference Call March 19, 2020 Krones Mid-Term Targets Revenue growth EBTIDA margin Working capital 2-5% 9-12% 22-24% Comparable to EBT margin 6-8%
Slide 26: Questions and Answers
26 ｜KRONES Conference Call March 19, 2020 Questions and Answers ? …
Slide 27: 27 ｜KRONES Conference Call March 19, 2020
27 ｜KRONES Conference Call March 19, 2020
Slide 28: Financial Calendar 2020
28 ｜KRONES Conference Call March 19, 2020 Financial Calendar 2020 March 19, 2020 Annual Report 2019 May 28, 2020 Capital Markets Day (postponed from March 2020) April 29, 2020 Conference Call Group Q1 2020 and Quarterly Statement as per March 31 May 18, 2020 Annual General Meeting Olaf Scholz Head o
Slide 29: Disclaimer
29 ｜KRONES Conference Call March 19, 2020 Disclaimer This investor presentation contains forward-looking statements that are based on current estimates, forecasts and assumptions made by KRONES AG management to the best of its knowledge and other information currently available to KRONES AG. The for