Krones Ag · XETR:KRN
Krones — Q3 2023 Earnings Presentation
33 slides from Krones's earnings presentation, Nov 3, 2023
Slide 1: Krones Q3 2023 Conference Call
Krones Q3 2023 Conference Call November 03, 2023 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones reports strong figures for 9 months 2023 and fully confirms targets
Krones reports strong figures for 9 months 2023 and fully confirms targets for 2023; All key figures are in the expected ranges Order intake in the first Revenue growth in first EBITDA significantly With the actual revenue 9 months at €4.1bn as a result 9 months 2023 by 14.5% yoy increased by 23% in
Slide 3: Krones highlights Q1 – Q3 2023
Krones highlights Q1 – Q3 2023 €4.11 billion +14.5% 9.5% -€166 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY +€4.60 billion) €3,486 million (PY 8.9%) (PY +€132 million) 3 Krones Conference Call November 03, 2023
Slide 4: Order intake (€ million)
Order intake (€ million) − Market demand still very high Order intake (€ million) − Q3 order intake of €1.33bn 5,783 above the level of the "new order +34.0% level" per quarter (€1.2 - €1.3bn p.q.) and 4.3% above Q2 2023 4,316 1,183 +30.5% 4,114 − Order intake in 2022 was 4,600 -10.6% influenced by
Slide 5: Orders on hand (€ million)
Orders on hand (€ million) − Order backlog at 30.9.2023 is at Orders on hand (€ million) €4.1bn with a range until 2025 4,094 − With a book-to-bill ratio of 1.2x +18.1% the orders on hand at 30.09.2023 3,466 were 18.1% above the very high +83.1% level at year end 2022 (€3.5bn; +83.1%) and 18.7% abov
Slide 6: Development of order intake [EURm] 2006 – 2023p
Development of order intake [EURm] 2006 – 2023p* 5.783 >5.200 +7,0% p.a. 4.316 3.957 4.084 3.787 3.441 3.307 3.040 3.189 2.721 2.809 2.514 2.300 2.326 2.194 1.967 1.916 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 p After strong growth in 2022, we expect
Slide 7: Main growth drivers for the global beverage industry
Main growth drivers for the global beverage industry Increasing share of people Growing world living in urban areas from population from current 55% to 65% in 2040 current 8bn people to and almost 70% in 2050; >9bn in 2040 and mainly affecting cities in the almost 10bn in 20501 Global South2 Rising
Slide 8: Sustainability rating success
Sustainability rating success Krones has received the EcoVadis gold medal − With the gold medal Krones belongs to the best 5 percent of companies rated from EcoVadis in our sector worldwide. − Currently more than 90 international customers are tracking Krones’ Scorecard via EcoVadis. The gold medal
Slide 9: Carbon Transition Plan published
Carbon Transition Plan published Krones published a 76-page strong Carbon Transition Plan to show progress and plan for climate action With the Transition Plan we anticipate requirements of CSRD, CDP, TCFD and other standards / ratings. 9 Krones Conference Call November 03, 2023
Slide 10: Focus on carbon emissions (Scope 1+2)
Focus on carbon emissions (Scope 1+2) Reducing our on-site emissions according to our climate target 100% − Forecast for 2023 improved due to measure implementation FC: − Many projects for energy efficiency, energy self-supply and 23,553 green energy procurement running t CO2e − Currently no compens
Slide 11: Well diversified revenue generation
Well diversified revenue generation Revenue split per customer segment, 2023 Revenue split per region, 2023 Middle East / Africa Eastern Europe / Central Asia 9,5% Small- and Mid- Europe Global Accounts 4,7% sized companies ~30% ~30% China 28,6% 7,1% Asia / Pacific 13,8% 10,3% 26,1% ~40% South Ameri
Slide 12: Strong growth in North America and in APAC outperforming other regions
Strong growth in North America and in APAC outperforming other regions Altogether the revenue split shows a strong resilience Share of revenues (Q1 – Q3) Eastern Europe/ Europe Central Asia Prag 32.2% 6.9% 5.2% North and 31.6% 28.6% 4.7% Central America 26.1% 2021 2022 2023 21.2% 21.8% China 8.6% 20
Slide 13: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) 4,209 Further strong revenue growth after +15.8% 9 months 2023 (14.5%); Updated revenue 3,634 1,165 guidance* confirmed with 11%–13% in 2023 +9.4% 3,486 − Despite supply chain shortages for +14.5% 991 electronic devices the revenue in Q3 2023 1,165 increase
Slide 14: EBITDA and EBITDA margin strongly improved
EBITDA and EBITDA margin strongly improved EBITDA (€ million) (€ million and %) 373.3 EBITDA margin 30.9. in % +19.4% EBITDA at €332 million (+23%) with 103.2 332.3 312.6 EBITDA margin at 9.5% +23.0% +134.7% − Under challenging conditions 110.9 EBITDA was significantly increased 100.0 by 23% and the
Slide 15: EBT and EBT margin by quarter (€ million and %)
EBT and EBT margin by quarter (€ million and %) EBT (€ million) EBT at €235 million(+33%) with EBT margin 30.9. in % EBT margin strongly increased to 6.8% 242.1 58.9 235.4 − EBT also increased significantly and +36.5% +33.3% is after 9 months with €235m nearly 65.5 at the same level as after full ye
Slide 16: Personnel and material expenses Q1 – Q3
Personnel and material expenses Q1 – Q3 (€ million and %) − Personnel cost ratio stabilized with Personnel costs Q1 - Q3 (€ million) Material costs Q1 – Q3 (€ million) 29.7% nearly on same level as last 1,763 year (29.9%) and on the level of full year 2022 (29.8%). 1,519 − Because of higher growth i
Slide 17: Krones employees worldwide
Krones employees worldwide – Growth in Germany in 9 months 2023 also includes hiring of temporary workers; a further growth in the RoW mainly related to services and digitalization and M&A (Ampco Pumps) Total Germany RoW Thereof KAG 18,258 17,164 16,303 9,821 10,130 10,553 8,375 6,482 8,608 7,034 8,
Slide 18: 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 − Increase in revenue (+12.9%) is slightly 2,881 below group level but in the range of our new revenue target* for 2023 (10% 2,551 to
Slide 19: 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 by 27% and confirms the updated growth target* for full year 2023 (20% to 25%; prev. 338 15% to 20%) − EBITDA margin with 7.0%
Slide 20: 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 − As predicted seasonal effects impact Intralogistics 266 − After strong growth within first 6 225 months (+30,8%), the growth rate in revenues after 9
Slide 21: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments Liquidity reserves Equity (€ million) and equity ratio (in %) 30.09.2023 − With €284m net cash and €859m free credit lines 1,684 Krones has a very strong Used credit lines 1,598 fina
Slide 22: Working Capital (in %)
Working Capital (in %) Further decrease in Working Capital with Working Capital of revenue Part of Working Capital in % 17.3% vs. 20.5% (%, average over four quarters) of revenue (last 12 months) − Relating to the revenues of the last 12 months the receivables/POC increased by 1.5%. In Euro 26.2 Rec
Slide 23: Free cash flow Q1 – Q3
Free cash flow Q1 – Q3 Current cash flows situation must be (€ million) 2023 2022 seen in relation to the extraordinary strong 2022 Earnings before taxes (EBT) 235.3 176.6 − Despite a positive development in the +/– Other non-cash changes +121.8 +147.8 earnings and non-cash situation the +/– Change
Slide 24: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of 9 months 2023 and FY 2022 must be considered together 398 − Free cash flow in 2023 is influenced by a further rising Working Capital based on stronger operative activities − As consequence of the neg
Slide 25: ROCE
ROCE − ROCE, as the third target figure, is at ROCE Q1 – Q3 2021 – 2023* in % 17.5% slightly above the expectations for FY 2023 (15% to 17%) and also better than the 14.1% of full year 2022 17.5 − The positive development of the last years is mainly based on higher earnings − This increase in earnin
Slide 26: Outlook 2023
Outlook 2023 26 Krones Conference Call November 03, 2023
Slide 27: Krones Outlook 2023 – an increasing growth target and strong confirmation of profitability
Krones Outlook 2023 – an increasing growth target and strong confirmation of profitability Kernaussage New target* confirmed: Confirmed: Confirmed: 11% – 13% 9% – 10% 15% – 17% Revenue growth EBITDA margin ROCE (prev. 8% – 11%) Key assumptions: 1. No further escalation of Russia-Ukraine conflict and
Slide 28: Key take aways
Key take aways 1. Despite strong revenue growth in 2023 order backlog has further increased and with >€4bn an excellent base for 2024 and 2025 2. Strong improvement in profitability, due to efficiency improvement measures and strong service business in all regions 3. After an excellent free cash flo
Slide 29: Questions and Answers
Questions and Answers 29 Krones Conference Call November 03, 2023
Slide 30: Thank you for your attention!
Thank you for your attention! 30 Krones Conference Call November 03, 2023
Slide 31: Financial calendar 2023/2024
Financial calendar 2023/2024 February 22, 2024 Conference Call Group Preliminary figures for the period from 1 January to December 31, 2023 May 3, 2024 Conference Call Group Quarterly statement for the period from 1 January to March 31, 2024 June 4, 2024 Annual General Meeting in Regensburg July 31,
Slide 32: 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 33: Solutions Beyond Tomorrow
SOLUTIONS BEYOND TOMORROW