Krones Ag · XETR:KRN
Krones — H1 2024 Earnings Presentation
31 slides from Krones's earnings presentation, Jul 31, 2024
Slide 1: Krones First Half Year 2024
Krones First Half Year 2024 Conference Call July 31, 2024 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones with a very successful HY1 2024
Krones with a very successful HY1 2024; Revenue and profitability increased significantly; Key figures are full in line with targets for 2024 Order intake in HY1 2024 at Revenue growth in Q2 2024 EBITDA margin after Targets for 2024 include the €2.8 billion as a result of by 16.7% yoy, after first h
Slide 3: Krones highlights 1st HY 2024
Krones highlights 1st HY 2024 €2.79 billion +10.1% 10.0% +€127 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY +€2.79 billion) €2,556 million (PY 9.5%) (PY -€131 million) 3 Krones Conference Call July 31, 2024
Slide 4: Order intake (€ million)
Order intake (€ million) Order intake (€ million) Market demand in the filling and 5,783 packaging industry is robust. Order +34.0% 5,377 intake in the 1st half of 2024 was 1,183 -7.0% above the high level of prior year Q4 1,263 − The Q2 2024 order intake was 2.9% 1,493 above prior year Q3 1,328 2,7
Slide 5: Order backlog (€ million)
Order backlog (€ million) Order backlog (€ million) − As forecasted, the book-to-bill ratio 4,359 was 1.1x in the first half of the year. 4,122 +5.7% 3,466 +18.9% − As a result, the order backlog +83.1% continued to rise despite strong revenue growth in the first six months − Order backlog of €4.4 b
Slide 6: Development of order intake 2006 – 2024
Development of order intake [€ million] 2006 – 2024 5.783 ~5.600 5.377 +6% 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 2024 The longterm view of order in
Slide 7: Revenue split industrialized and emerging markets
The well-balanced revenue split in industrialized (52%) and emerging markets (48%) reflects the strong resilience of Krones Share of revenues (1st HY) Eastern Europe/ Europe Central Asia Prag 33.0% 7.6% 5.5% 5.1% North and 31.0% 28.6% Central America 24.9% 2022 2023 2024 23.3% 21.6% China 2022 2023
Slide 8: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) 4,721 Revenue growth in Q2 2024 accelerated +12.2% as expected significantly by 16.7% 4,209 1,235 compared to the first quarter (4.0%) +15.8% 1,165 − The acquisition of Netstal (closed end Q4 of March) had a positive impact on the 1,165 2,556 second quarter
Slide 9: EBITDA and EBITDA margin further improved
EBITDA and EBITDA margin further improved (€ million and %) 457.3 +22.5% EBITDA margin at 10.0% with EBITDA 125.0 EBITDA (€ million) at €256 million (+16%) 373.3 EBITDA margin in % +19.4% − Despite of higher personnel- and 103.2 material costs EBITDA continued to improve by 16% and thus represents Q
Slide 10: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) 310.5 +28.3% EBT margin increased in Q2 2024 to EBT (€ million) 7.4% vs. 7.0% Q2 prior year 75.1 EBT margin in % − After six months in 2024 EBT also 242.1 +36.5% increased by 15% up to €186 million and a EBT margin of 7.3% 65.5 74.3 185.7 Q4 − EBT was
Slide 11: Personnel and material expenses HY1
Personnel and material expenses HY1 (€ million and %) − Personnel costs increased by 12% as a Personnel costs 1st HY (€ million) Material costs 1st HY (€ million) result of increasing employee amount (+10,1%) in the last 12 months. Also wages 1,272 and salaries raised but all in all the 1,146 person
Slide 12: Krones employees worldwide
Krones employees worldwide – Growth in Germany in HY1 2024 (+1.9%) also includes hiring of service engineers; a further growth in the RoW (+10.4%) mainly related to M&A (Netstal) Total Germany RoW Thereof KAG 19,534 18,513 17,164 10,654 10,861 10,130 8.673 7,859 9,234 8,608 7.034 9,056 31.12.2022 31
Slide 13: Revenue and EBITDA per segment (1/3)
Revenue and EBITDA per segment (1/3) Filling and Packaging Technology Revenue development 1st HY Segment EBITDA (€ million) and (€ million) EBITDA margin (%) 1st HY − Revenue growth (+11.5%) is above the 2,149 growth of the group and in line with the 1,927 target 2024 (9% to 13%). Growth in Q2 223 2
Slide 14: Revenue and EBITDA per segment (2/3)
Revenue and EBITDA per segment (2/3) Process Technology Revenue development 1st HY Segment EBITDA (€ million) and (€ million) EBITDA margin (%) 1st HY − Revenues increased in the first six months 2024 by 18.6% and is fully in line with the growth target for full year 2024 (15% to 20%) 255 − EBITDA m
Slide 15: Revenue and EBITDA per segment (3/3)
Revenue and EBITDA per segment (3/3) Intralogistics Revenue development 1st HY Segment EBITDA (€ million) and (€ million) EBITDA margin (%) 1st HY − Revenue decreased to €152 million in HY1 resulting from ambitious market conditions in 2023 − Based on an actual good order intake we confirm the reven
Slide 16: 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 M&A Liquidity reserves Equity (€ million) and equity ratio (in %) activities (€185 million) and 30.06.2024 dividends (€70 million) 1,772 financial position o
Slide 17: Working Capital 1st HY (in %)
Working Capital 1st HY (in %) Working Capital average is stable at Working Capital of revenue 1st HY Part of Working Capital in % 17.4% vs. 17.2% (%, average over four quarters) of revenue (last 12 months) − The receivables/POC decreased just slightly by 0.4% relating to the revenues. In Euro 21.6 R
Slide 18: Free cash flow 1st HY
Free cash flow 1st HY With a strong operating cash flow in first (€ million) 2024 2023 half year 2024 the free cash flow (w/o M&A) improved significantly to €127m Earnings before taxes (EBT) 185.7 161.1 − The positive development of the earnings +/– Other non-cash changes +102.1 +65.2 compensated th
Slide 19: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of first half year 2024 398 developed as expected − The development of free cash flow normalized in HY1 2024 − As a consequence of the high free cash 221 203 flow after six months in 2024 the cash conve
Slide 20: ROCE
ROCE − ROCE, as the third target figure, is at ROCE 1st HY 2022 – 2024* in % 18.8% at the upper end of expectations for FY 2024 (17% to 19%) and better 18.8 than 17.8% of HY1 2023 17.8 − The positive development is mainly based on higher EBIT (+25%) after six months 2024 − This increase in earnings
Slide 21: Outlook 2024
Outlook 2024 21 Krones Conference Call July 31, 2024
Slide 22: 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 23: 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% 23 Krones Conference Call July 31, 2024
Slide 24: 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 25: Key take aways
Key take aways 1. Krones with a very good first half year 2024. Revenue and profitability increased significantly 2. Markets are robust and our customers continue to invest 3. With a very high order backlog Krones has planning certainty and a capacity utilization beyond mid 2025 4. Further strong im
Slide 26: Questions and Answers
Questions and Answers 26 Krones Conference Call July 31, 2024
Slide 27: Conference Call HY1 2024 Krones Capital Market Day
Conference Call HY1 2024 27 Krones Capital Market Day 2024
Slide 28: Thank you for your attention!
Thank you for your attention! 28 Krones Conference Call July 31, 2024
Slide 29: Financial calendar 2024
Financial calendar 2024 November 5, 2024 Conference Call Group Quarterly statement for the period from 1 January to September 30, 2024 Olaf Scholz Head of Investor Relations KRONES AG Böhmerwaldstrasse 5 93073 Neutraubling Germany Mail Olaf.Scholz@krones.com Phone +49 9401 70-1169 29 Krones Conferen
Slide 30: 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 31: Solutions Beyond Tomorrow
SOLUTIONS BEYOND TOMORROW