Slide 1: Krones Q3 2024 Conference Call
Krones Q3 2024 Conference Call November 05, 2024 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones with a successful Q3 2024; Revenue and profitability increased again
Krones with a successful Q3 2024; Revenue and profitability increased again; Key figures are full in line with targets for 2024 Order intake in first nine Revenue growth in Q3 2024 EBITDA margin after 9 Targets for 2024 include the months 2024 at €4.1 billion as by 13.2% yoy, after first nine months
Slide 3: Krones highlights Q1 – Q3 2024
Krones highlights Q1 – Q3 2024 €4.12 billion +11.2% 10.1% +€145 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY €4.11 billion) €3,875 million (PY 9.5%) (PY -€166 million) 3 Krones Conference Call November 05, 2024
Slide 4: Order intake (€ million)
Order intake (€ million) Order intake (€ million) Market demand in the filling and 5,783 packaging industry is robust and +34.0% 5,377 pipeline is full. 1,183 -7.0% − The Q3 2024 order intake was almost Q4 1,263 4,116 on the same high level as prior year 1,493 +0.1% Q3 1,328 1,323 − In the first 9 m
Slide 5: Order backlog (€ million)
Order backlog (€ million) Order backlog (€ million) − As forecasted, the book-to-bill ratio 4,364 was 1.1x in the first 9 months 2024 4,122 +5.9% − As a result, the order backlog 3,466 +18.9% +83.1% continued to rise despite strong revenue growth (11.2%) in the first nine months − Order backlog of €
Slide 6: Revenue split in industrialized and emerging markets
The well-balanced revenue split in industrialized (51%) and emerging markets (49%) reflects the strong resilience of Krones Share of revenues (Q1 – Q3) Eastern Europe/ Europe Central Asia Prag 32.2% 7.3% 5.2% North and 28.6% 27.5% 4.7% Central America 2022 2023 2024 26.1% 23.3% 21.8% China 2022 2023
Slide 7: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) 4,721 Krones' strong revenue growth +12.2% continued in the third quarter (+13.2%). 4,209 1,235 +15.8% 3,875 − After nine months 2024 growth at 11.2% was thus within the range of 1,165 +11.2% 9% to 13% forecast for 2024 1,319 Q4 − The acquisition of Netstal
Slide 8: EBITDA and EBITDA margin further improved
EBITDA and EBITDA margin further improved EBITDA (€ million) (€ million and %) EBITDA margin 30.09. in % 457.3 +22.5% EBITDA margin at 10.1% with EBITDA 125.0 391.1 at €391 million (+18%) 373.3 +17.7% +19.4% − Despite of higher personnel- and 134.9 103.2 material costs EBITDA continued to improve by
Slide 9: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) EBT (€ million) EBT margin 30.09. in % 310.5 +28.3% EBT margin increased in nine months 275.6 2024 to 7.1% vs. 6.8% prior year 75.1 +17.1% − After 9 months in 2024 EBT also 242.1 89.9 +36.5% increased by 17% up to €276 million and a EBT margin of 7.1%
Slide 10: Personnel and material expenses Q1 – Q3
Personnel and material expenses Q1 – Q3 (€ million and %) − Personnel costs increased by 15% as a Personnel costs Q1 – Q3 (€ million) Material costs Q1 – Q3 (€ million) result of increasing number of employees 1,909 (+9.7%) in the last 12 months. Also wages 1,763 and salaries raised but all in all t
Slide 11: Krones employees worldwide
Krones employees worldwide – Growth in Germany in 9months 2024 (+4.2%) also includes hiring of service engineers and trainees; a further growth in the RoW (+11.8%) mainly related to M&A (Netstal) Total Germany RoW Thereof KAG 20,025 18,513 17,164 10,654 11,119 10,130 8,906 7,859 9,395 8,608 7.034 9,
Slide 12: Revenue and EBITDA per segment (1/3)
Revenue and EBITDA per segment (1/3) Filling and Packaging Technology Revenue development Q1 – Q3 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 – Q3 − Revenue growth (+13.8%) is above the 3,277 growth of the group and in line with the target 2024 (9% to 13%). Growth in Q3 2,881 342
Slide 13: Revenue and EBITDA per segment (2/3)
Revenue and EBITDA per segment (2/3) Process Technology Revenue development Q1 – Q3 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 – Q3 − Revenues increased in the first nine months 2024 by 12%. After a good first half year 2024 (+19%) and a seasonally weaker Q3 we are fully in line
Slide 14: Revenue and EBITDA per segment (3/3)
Revenue and EBITDA per segment (3/3) Intralogistics Revenue development Q1 – Q3 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 – Q3 − Revenue decreased to €220 million in first nine months 2024 resulting from ambitious market conditions. The share of this segment in group sales is a
Slide 15: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments − Despite of payment for Liquidity reserves Equity (€ million) and equity ratio (in %) M&A activities (€179 million) 30.09.2024 and dividends (€70 million) financial position of Kron
Slide 16: Working Capital Q3 (in %)
Working Capital Q3 (in %) Working Capital average is stable at Working Capital of revenue Q3 Part of Working Capital in % 17.1% vs. 17.3% (%, average over four quarters) of revenue (last 12 months) − The receivables/POC decreased by 2.1% relating to the revenues. In Euro amount Receivables/PoC the i
Slide 17: Free cash flow Q1 – Q3
Free cash flow Q1 – Q3 With a strong operating cash flow in first (€ million) 2024 2023 nine months 2024 the free cash flow (w/o M&A) improved with €311 million Earnings before taxes (EBT) 275.6 235.3 significantly to €145 million +/– Other non-cash changes +166.7 +121.8 − The positive development o
Slide 18: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of first nine months 2024 398 developed as expected − The development of free cash flow normalized in first nine months 2024 221 203 − As a consequence of the high free 149 145 cash flow after nine mont
Slide 19: ROCE
ROCE − ROCE, as the third target figure, is at ROCE Q1 – Q3 2022 – 2024* in % 18.3% within our expectations for FY 2024 (17% to 19%) and better than 17.5% of 9 months 2023 18.3 17.5 − The positive development is mainly based on higher EBIT (+23%) after nine months 2024 − This increase in earnings wi
Slide 20: Outlook 2024
Outlook 2024 20 Krones Conference Call November 05, 2024
Slide 21: Krones Outlook 2024 – further growth and improvement of profitability
Krones Outlook 2024 – further growth and improvement of profitability; All targets including the acquisition of Netstal 9% – 13% 9.8% – 10.3% 17% – 19% Revenue growth EBITDA margin ROCE There are various unpredictable factors that could affect the company’s business processes and production. These i
Slide 22: Krones Outlook 2024 – Segment targets
Krones Outlook 2024 – Segment targets (including the acquisition of Netstal in the core segment) Filling and Packaging Process Intralogistics Technology Technology Revenue growth 9% – 13% 15% – 20% 5% – 10% EBITDA margin 10.3% – 10.8% 8% – 9% 6% – 7% 22 Krones Conference Call November 05, 2024
Slide 23: Mid-term targets 2028
Mid-term targets 2028 Revenue, € billion EBITDA and EBT margin, % ROCE, % ~7.0 bn EBITDA EBT >20% 4.7 bn 16.3% 11-13% 9.7% 8-10% 6.6% 2023 2028 target 2023 2028 target 2023 2028 target Growth drivers Profitability drivers ROCE drivers 3% Global Beverage Market Pricing power Increase in EBIT
Slide 24: Key take aways
Key take aways 1. Krones with good figures for the first 9 months 2024. Revenue and profitability increased significantly 2. Despite critical overall economic conditions, the beverage markets are robust and the willingness of our customers to invest remains good 3. With a very high order backlog of
Slide 25: Questions and Answers
Questions and Answers 25 Krones Conference Call November 05, 2024
Slide 26: Conference Call Q3 2024
Conference Call Q3 2024 26 Krones Conference Call November 05, 2024
Slide 27: Thank you for your attention!
Thank you for your attention! 27 Krones Conference Call November 05, 2024
Slide 28: Financial calendar 2025
Financial calendar 2025 February 20, 2025 Conference Call Group Preliminary figures for the period from 1 January to December 31, 2024 May 9, 2025 Conference Call Group Quarterly statement for the period from 1 January to March 31, 2025 May 27, 2025 Annual General Meeting in Regensburg July 30, 2025
Slide 29: 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
Slide 30: Solutions beyond tomorrow
SOLUTIONS BEYOND TOMORROW