Krones Ag · XETR:KRN
Krones — H1 2015 Earnings Presentation
21 slides from Krones's earnings presentation, Jul 23, 2015
Slide 1: Conference Call First Half Year 2015
KRONES Conference Call First Half Year 2015 Page 1 | KRONES Conference Call July 23, 2015
Slide 2: Krones continues profitable growth trend
Krones continues profitable growth trend Revenue from January to June 2015 grew 4.8% to €1,503.7 million. New orders exceeded year-earlier period by 4.3%. EBT margin improved sharply, from 6.2% to 6.9%, in the first half. Krones has raised its EBT margin target for 2015 from 6.8% to 7.0%. Page 2 | K
Slide 3: New orders rose 4.3% in 1st HY
New orders rose 4.3% in 1st HY New orders 1st HY (€ million) New orders by quarter (€ million) 3,040 2,809 2,721 +8.2% 2,514 +3.2% Q4 842.2 1,524 1,462 +8.2% (+19.5%) 1,383 Q4 705.0 1,323 1,328 (–6.5%) 1,524 (+4.3%) Q3 735.9 Q3 721.0 (+2.1%) (+12.7%) 737.1 Q2 Q2 723.1 (+1.9%) Q2 697.6 (+3.7%) (–4.4%
Slide 4: Revenue rose ≈ 5% in 1st HY
Revenue rose ≈ 5% in 1st HY Revenue development 1st HY (€ million) Revenue development by quarter (€ million) 2,953 2,816 2,664 +4.9% 2,480 +5.7% Q4 789.0 1,504 +7.4% Q4 782.8 (+0.8%) 1,436 (+2.1%) 1,377 1,290 Q3 728.9 1,258 (+11.2%) Q3 655.4 1,504 (+7.8%) (+4.8%) Q2 694.1 Q2 732.5 Q2 764.8 (+8.3%)
Slide 5: Revenue per region in 1st HY 2015
Revenue per region in 1st HY 2015 CIS/Central Asia 2014 2015 4.9% 3.3% North America Europe 2014 2015 2014 2015 China 8.1% 12.8% 32.1% 36.2% 2014 2015 9.0% 8.6% Africa/Middle East South America 2014 2015 Asia/Pacific 2014 2015 11.1% 15.2% 2014 2015 14.6% 10.3% 20.2% 13.6% Share of Emerging Markets o
Slide 6: Strong increase of EBT margin based on the performance improvement
Strong increase of EBT margin based on the performance improvement EBT 1st HY (€ million) Personnel costs 1st HY (€ million) 434.0 468.9 406.0 414.1 104.1 89.4 +16% 31.9 30.9 30.7 79.7 30.1 +12% 2012 2013 2014 2015 64.0 +25% Personnel costs to total performance (%) 6.9 6.2 Material costs 1st HY (€ m
Slide 7: Machines and lines for product filling and decoration
Machines and lines for product filling and decoration Page 7 | KRONES Conference Call July 23, 2015
Slide 8: Product filling and decoration: Further improvement of profitability
Product filling and decoration: Further improvement of profitability Revenue development 1st HY EBT development 1st HY (€ million) (€ million) Regionalization of the LCS business 1,281 1,209 1,136 +6% 98.4 +6% Cost reduction program to compensate 87.6 +12% cost increases 79.5 +10% Expansion of modul
Slide 9: Machines and lines for beverage production / process technology
Machines and lines for beverage production / process technology Page 9 | KRONES Conference Call July 23, 2015
Slide 10: Beverage production/process technology: volatile sales development in the quarters
Beverage production/process technology: volatile sales development in the quarters Revenue development 1st HY EBT development 1st HY (€ million) (€ million) Expansion of the component business 187.1 173.4 174.2 -7% Strengthening the product portfolio for carbonated softdrink applications and 2013 20
Slide 11: Machines and lines for the low output range
Machines and lines for the low output range Page 11 | KRONES Conference Call July 23, 2015
Slide 12: Segment for the low output range: Successful restructuring, sustainable margin situation
Segment for the low output range: Successful restructuring, sustainable margin situation Revenue development 1st HY EBT development 1st HY (€ million) (€ million) Restructering program in the final stage. Operating result is in proving profitability 54.1 53.2 2013 2014 2015 -1.7% 48.6 -8.6% Strength
Slide 13: ROCE increases as planned
ROCE increases as planned Working capital* 1st HY (%) of revenue ROCE* 1st HY (%) 17.0 15.6 15.9 25.8 23.9 24.5 24.5 13.2 2012 2013 2014 2015 2012 2013 2014 2015 *LTM (Last twelve months) *LTM (Last twelve months) Page 13 | KRONES Conference Call July 23, 2015
Slide 14: Free cash flow stable
Free cash flow stable (€ million) 1st HY 2015 1st HY 2014 Earnings before taxes 104.1 89.4 +/– non-cash expenses and income +53.2 + 101.8 +/– change in Working Capital -112.8 –157.9 +/– other (mainly tax payments) -21.1 –20.8 Cash flow from operating activities 23.4 12.5 +/– Capex, intangible Assets
Slide 15: Equity rose over 1 billion €, ratio at 41%
Equity rose over 1 billion €, ratio at 41% 2,504 Total 2,504 Total 2,428 Property, plant 2,428 and equipment, 2,238 intangible assets, 2,238 626 and financial assets 624 1,029 605 Non-current 988 Equity 51 48 assets 953 36 681 Non-current 650 Inventories 13 12 liabilities 641 29 436 Provisions 439 3
Slide 16: Krones raises EBT margin target for 2015 from 6.8% to 7.0%
Krones raises EBT margin target for 2015 from 6.8% to 7.0% Target: Target: Target: Revenue growth EBT margin ROCE + 4% 7% 17% HY1 2015: HY1 2015: HY1 2015: 4.8% 6.9% 17.0% ✓ ✓ ✓ Page 16 | KRONES Conference Call July 23, 2015
Slide 17: Change in Management Board in 2016
Change in Management Board in 2016 Volker Kronseder Christoph Klenk Longterm experience in the 2015 CEO CFO packaging industry in various financial functions Volker Kronseder intends Christoph Klenk Michael Andersen 2016 to join the Supervisory Board CEO CFO Page 17 | KRONES Outlook Conference 2015
Slide 18: Vita Michael Andersen
Vita Michael Andersen Personal Data Date of birth 09.02.1968 (Denmark) Marital Status Married, three children Nationality Danish Languages Danish (Native language), English, German Professional Career 2014 – Triton 1995 – 2014 GEA Group 2010 – 2014 CFO, GEA Heat Exchangers (Sales ~ 1,5 billion €, 7
Slide 19: Page 19 | KRONES Conference Call July 23, 2015
Page 19 | KRONES Conference Call July 23, 2015
Slide 20: Financial Calender 2015
Financial Calender 2015 22.10.2015 Conference Call concern Q3 2015 Interim Report as per September 30 28.04.2016 Interim Report as per March 31th 2016 and Annual Report 2015 Conference Call concern Q1 2016 15.06.2016 Annual General Meeting Olaf Scholz Head of Investor Relations KRONES AG Böhmerwalds
Slide 21: Disclaimer
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 forward-looking statements of this presentati