Krones Ag · XETR:KRN
Krones — Q3 2014 Earnings Presentation
22 slides from Krones's earnings presentation, Oct 23, 2014
Slide 1: Shaping success – Conference Call January–September 2014
krones 1｜ krones Conference Sample textCall Q3 2014 Shaping success Conference Call January – September 2014 October 23, 2014
Slide 2: KRONES fulfil the complete demand of the customers
krones 2｜ krones Conference Sample textCall Q3 2014 KRONES fulfil the complete demand of the customers MES/ITS Filling and Process technology packaging technology Material flow technology Beer Labelling Warehouse management Malt drinks Inspection Soft drinks Filling Wet part In-house
Slide 3: KRONES is established in all regions
krones 3｜ krones Conference Sample textCall Q3 2014 KRONES is established in all regions KRONES worldwide Sales Distribution in 2013 Germany 10 % 64 % 26% Europe (excl. GER) Other Regions
Slide 4: Development of primary packaging 2003-2018
krones 4｜ krones Conference Sample textCall Q3 2014 Development of primary packaging 2003-2018 Market development Beverage packaging in billion units Annual growth rate +3.6% p.a. 1,777 2013/2018 +3.5% p.a. Others +4.1% 1,598 145 +3.3% p.a. HDPE +5.0% 1,491 71 +3.4% p.a. 129 +2.5% p.a. 1,397 119 61
Slide 5: Highlights Q3/2014
krones 5｜ krones Conference Sample textCall Q3 2014 Highlights Q3/2014 KRONES’ value strategy program is working Revenue up 6.5 % to € 2,164.4 million at the end of nine months Krones further improves profitability EBT margin climbs from 5.8 % to 6.3 % Krones streamlines Kosme Italy´s portfo
Slide 6: Orders received up 4.5 % in line with targets
krones 6｜ krones Conference Sample textCall Q3 2014 With an increase of 4,5 % in orders received KRONES is in line with the targets Trend by region Orders on hand Orders received 2012 2013 2014 in €m in €m Central Europe +5% 1,026 +7% Western Europe 1,070 -4% +6% 1,012 Q3 2,198 Eastern Europe +3% 1,
Slide 7: Sales are increasing after nine months by 6.5 %
krones 7｜ krones Conference Sample textCall Q3 2014 Sales are increasing after 9 months by 6,5 % Sales Q1 – Q3 Sales per Region (in €m) Germany 189.2 8.7 % Central Europe 70.5 3.3 % +6% +7% Western Europe 366.2 16.9 % 2,165 2,033 Eastern Europe 62.0 2.9 % 1,898 729 655 +11% CIS and Central Asia 89.8
Slide 8: EBT margin increasing significantly because of higher productivity
krones 8｜ krones Conference Sample textCall Q3 2014 EBT-Margin is increasing significantly because of higher productivity +17% EBT Q1 – Q3 136.7 Material costs Q1 – Q3 1,011.5 1,046.1 916.9 891.5 +132% 47.3 117.1 Q3 49.9 49.6 49.0 -40% 48.8 37.4 84.1 2011 2012 2013 2014 14.9 Material costs to total
Slide 9: Product filling and packaging: cost efficiency program increases margin
krones 9｜ krones Conference Sample textCall Q3 2014 Product filling and packaging: cost efficiency program increases margin Sales development +12% +3% 1,866 1,666 1,617 657 Q3 530 489 Key Topics 2014 635 560 561 Q2 Taking our LCS business further into the regions 568 575 574 Q1 Reducing costs no
Slide 10: Process technology: Sales development is not satisfactory
10 krones ｜kronesSample textCall Q3 2014 Conference Process technology: Sales development is not satisfactory Sales development -25% +39% 290.1 216.5 103.0 43.1 Q3 208.7 Key Topics 2014 96.9 70.3 Q2 105.0 Expansion of the component business 56.6 (Operational start of Evoguard in 2014 and 103.1 Acq
Slide 11: KOSME: Restructuring provision results in a negative EBT
11 krones ｜kronesSample textCall Q3 2014 Conference KOSME: Restructuring provision results in a negativ EBT Sales development +7% +8% 82.0 76.8 71.4 28.8 22.7 Q3 21.7 Achievements 2013 27.8 27,1 Q2 24.2 Long term strategy evaluated 25.5 26.3 26.1 Q1 Kosme will be long term part of the product st
Slide 12: KOSME status
12 krones ｜kronesSample textCall Q3 2014 Conference KOSME status Root cause analysis, KOSME Italy The product mix has experienced a critical development Italy Packing technology has declined in terms of profitability far more than other product groups Revenues in single machines are declining
Slide 13: KOSME status – measures
13 krones ｜kronesSample textCall Q3 2014 Conference KOSME status The following principle measures are the result of this analysis Italy Termination of packing technology Personnel reductions in packing technology Tightening of management structure Additional turnover in labelling technology
Slide 14: KOSME status – summary of measures and effects
14 krones ｜kronesSample textCall Q3 2014 Conference KOSME status Summary of measures and their effects 2014 2015 2016 Italy Italy 7 Today Tomorrow + 1 million 0 69 million € sales 54 million € sales 1 2 Employees Employees 5 Permanent employees: Permanent employees: 250 384 4 6 Loan workers: 20 Loan
Slide 15: ROCE improved again
15 krones ｜kronesSample textCall Q3 2014 Conference ROCE improved again ROCE Working Capital 15.6% 15.3% 16.7% 15.1% 25.7% 24.2% 25.2% 16.1% 15.4% 15.9% 2014 25.0% 26.0% 25.2% 21.2% 24% 2014 2014 2014 2014 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Average 2013 KRONES generated a ROCE of 16.1 % which is in line w
Slide 16: Free Cash Flow has further improved in Q1–Q3 2014
16 krones ｜kronesSample textCall Q3 2014 Conference Free Cash Flow has further improved in Q1 – Q3 2014 Q1-Q3 2014 Q1-Q3 2013 Earnings before tax in €m 136.7 117.1 +/- non-cash expenses and income in €m 128.9 126.7 +/- change in Working Capital in €m -161.1 -229.7 +/- other (mainly tax payments) in
Slide 17: Balance sheet in € million
17 krones ｜kronesSample textCall Q3 2014 Conference Balance sheet in € million Assets Equity and liabilities 2,238 2,319 Total 2,238 2,319 Total 2,070 Property, plant and 2,070 equipment, 605 (27%) 600 (26%) intangible assets and 587 (28%) financial assets 797 (39%) 953 (43%) 960(41%) Non-current as
Slide 18: Economic Development by Region
18 krones ｜kronesSample textCall Q3 2014 Conference Economic Development by Region GDP Development 2013 – 2015 (October 2014) 6 CIS Global 2,2 2,2 2,1 1,6 0,9 0,8 2 USA 3,0 3,1 4 3,8 2013 e2014 e2015 3,2 3,3 3,4 3,3 1,9 2,2 1,7 2,2 1 Euro Area 3 China 1,1 1,5 1,3 7,7 7,7 0,8 7,4 7,4 2013 e2014 e2015
Slide 19: Targets for 2014 confirmed
19 krones ｜kronesSample textCall Q3 2014 Conference Targets for 2014 confirmed In 2014, KRONES will focus even further on the value strategy for profitable growth. KRONES is optimistic to achieve the three targets: Revenue growth of 4% EBT Margin of around 6.2% ROCE above 16%
Slide 20: Thank you!
20 krones ｜kronesSample textCall Q3 2014 Conference Thank you! Vielen Dank!
Slide 21: Financial calendar
21 krones ｜kronesSample textCall Q3 2014 Conference Financial calendar Interim report 30.04.2015 as per March 31th 2015 and Annual Report 2014 Annual General Meeting 17.06.2015 (Neutraubling) Olaf Scholz Head of Investor Relations and Interim report 23.07.2015 International Group Accounting as per J
Slide 22: Disclaimer
22 krones ｜kronesSample textCall Q3 2014 Conference 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 A