Krones Ag · XETR:KRN
Krones — Investor Day (November 2020)
87 slides from Krones's investor day presentation, Nov 12, 2020
Slide 1: Capital Market Day 2020
JFH Understanding Uncertainty Mastering Volatility Shaping the Future Capital Market Day 2020 12th of November 2020
Slide 2: The Global Impact of COVID-19 is severe, but growth fundamentals remain intact
2 ｜Capital Market Day 2020 The Global Impact of COVID-19 is severe,… Travel Restrictions On-Trade Sales Supply Chain …but long-term Growth Fundamentals remain intact… Population Growth Middle Class Urbanization …and Krones is well positioned for the “New Normal”! Remote & Digital Sustainable Localiz
Slide 3: Agenda
3 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 4: Agenda
4 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 5: Krones Highlights Q1 – Q3 2020
5 ｜Capital Market Day 2020 Krones Highlights Q1 – Q3 2020 -22.2% 2,301 EURm 2,449 Sales (-15.3%) EURm New orders Free cash flow -58.4 6.0% EURm (PY -294.5 EURm) 147,3 EURm (PY 164,3 EURm; 5.7%) EBITDA margin
Slide 6: Order Intake in Q3 clearly better than Q2 – but still affected by COVID-19
6 ｜Capital Market Day 2020 Order Intake in Q3 clearly better than Q2 – but still affected by COVID-19 4,084 3,959 1,126 1,069 ▪ Order intake in Q3 2020 was 8% below prior 2,301 2,449 -15.3% year, but with a strong increase vs. Q2 2020 919 -22.2% -8.2% 1,000 -25.0% (+37%). 750 844 997 -38.2% 906 -16.
Slide 7: Cost Savings compensate the negative Sales Effect on the EBITDA in Q3
7 ｜Capital Market Day 2020 Cost Savings compensate the negative Sales Effect on the EBITDA in Q3 ▪ Cost savings in personnel and material costs compensate most of the negative effects from the decrease in sales on the EBITDA ▪ EBITDA margin in Q3 with 6.0% was higher than prior year (5.7%) ▪ EBT aff
Slide 8: Development of Sales and EBITDA per Segment 9 Months
8 ｜Capital Market Day 2020 Development of Sales and EBITDA per Segment 9 Months Segment Sales (EURm) 9 months EBITDA (EURm) 9 months Targets 2020 *** Product filling Product filling Growth EBITDA margin and decoration ▪ The measures to reduce personnel costs +6% +6% -13% 8.7% 7.0% 8.3% (short-term)
Slide 9: Free Cash Flow improved significantly vs. prior Year
9 ｜Capital Market Day 2020 Free Cash Flow improved significantly by 236 EURm vs. prior Year Q1 – Q3 (in EURm) 2020 2019 Earnings before taxes 26.7 61.4 +/– Other non-cash changes +176.6 +187.9 ▪ Change in working capital favorable +/– Changes in working capital -85.5 -321.1 developed compared to las
Slide 10: Krones Outlook 2020
10 ｜Capital Market Day 2020 Krones Outlook 2020 Revenue growth EBITDA margin ~-17% 5.5-6.0% Sales Equivalent to EBT margin ~€3.3bn 1.0-1.6% This outlook does not include any one-off expenses for impairments and structural measures for capacity adjustments. If further countries and regions impose loc
Slide 11: Krones Group KPIs Actuals, Outlook 2020 and Base Case 2021/2022
11 ｜Capital Market Day 2020 Krones Group KPI‘s Actuals, Outlook 2020 and Base Case 2021/2022 Actual Actual* Actual * Outlook* Base Case Base Case EURm 2017 2018 2019 2020 2021 2022 SALES 3,691 3,854 3,959 ~ 3,300 EBITDA 9.2% 8.7% 6.6% 5.5% - 6.0% margin EBT margin 7.0% 6.4% 2.8% 1.0% - 1.6% Working
Slide 12: Q3 Financials & Outlook Confirmation
12 ｜Capital Market Day 2020 Q3 Financials & Outlook Confirmation Detailed Q3/2020 financial figures are published today and we confirm our FY2020 outlook
Slide 13: Agenda
13 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 14: Number of Infections is rising globally
14 ｜Capital Market Day 2020 Number of Infections is rinsing globally – biggest Momentum in Northern Hemisphere Status 11/11/2020 While a second wave of infections hits Europe in particular, daily infections have been rising steadily on a global level.
Slide 15: Why and for how long the Virus is likely resurging in Europe & North America
15 ｜Capital Market Day 2020 Why and for how long the Virus is likely resurging in Europe & North America 1) Less sun exposure → low Vitamin-D levels 1) Dry mucous membrane 2) More social activities in closed spaces 2) Increased virus survival (lipid bilayer) Critical October to April Scenario for
Slide 16: Krones' COVID-19 Response: Successful Adaptation of our Operational Setup
16 ｜Capital Market Day 2020 Krones’ COVID-19 Response: Successful Adaptation of our Operational Setup Health Management The health & safety of our employees is paramount! We do our best, to keep ALL colleagues healthy. First precautionary measures approved by executive board & implemented as early
Slide 17: Agenda
17 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 18: Regional Second Wave of Infections hits Europe - Ramifications for the Beverage Market
18 ｜Capital Market Day 2020 Regional Second Wave of Infections hits Europe - Ramifications for the Beverage Market Second Wave Implications ▪ A rebound of on-trade sales throughout summer reverses as restrictions return ▪ Volume shifts from on-trade to off-trade are now increasingly becoming permane
Slide 19: Market Insights from our Discussions with Customers on Executive Level
19 ｜Capital Market Day 2020 Market Insights from our Discussions with Customers on Executive Level Current situation of our customers » Revenue decline by 10-15% » Overall profitability down 25-30% » Changes in product portfolio: less SKUs & higher volumes » Shift in distribution channels: more off-
Slide 20: Investment Strategy Insights from our Discussions with Customers
20 ｜Capital Market Day 2020 Investment Strategy Insights from our Discussions with Customers on Executive Level Customer investment plans » Limited capex in upcoming years » Opex in focus => Alternatives » Supply-chains change alongside customer behavior » More operator-free processes (remote/automa
Slide 21: Anticipated Changes in Beverage Consumption & Market Potential
21 ｜Capital Market Day 2020 Anticipated Changes in Beverage Consumption & Market Potential Global beverage consumption by industry (in bn litre) CAGR* CAGR 14/19 CAGR 20/25 Beverage consumption +2,0% +1,4 % CAGR 19/20 Global: -5,4% Beer 1.366 1.383 1.239 1.292 207 211 Wine/Spirits 183 62 205 70 61 1
Slide 22: Krones Group KPIs Actuals, Outlook 2020 and Base Case 2021/2022
22 ｜Capital Market Day 2020 Krones Group KPI‘s Actuals, Outlook 2020 and Base Case 2021/2022 Actual Actual* Actual * Outlook* Base Case Base Case EURm 2017 2018 2019 2020 2021 2022 SALES 3,691 3,854 3,959 ~ 3,300 3,300 – 3,400 3,500 – 3,600 EBITDA 9.2% 8.7% 6.6% 5.5% - 6.0% margin EBT margin 7.0% 6.
Slide 23: Agenda
23 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 24: COVID-19 will not change long-term Tendencies of Population Growth
24 ｜Capital Market Day 2020 COVID-19 will not change long-term Tendencies of Population Growth The Size of Human World Population projection until 2100 Population by country, available from 1800 to 2100 based on Gapminder data, HYDE, and UN Population Division (2019) medium variant scenario projecti
Slide 25: Neither will COVID-19 change the long-term Trend towards Urbanization
25 ｜Capital Market Day 2020 Neither will COVID-19 change the long-term Trend towards Urbanization Split of Population Urban vs. Rural based on UN projection until 2050 ourworldindata.org CC-BY
Slide 26: Rising Middle Class: 2020 marks a setback but it's temporary
26 ｜Capital Market Day 2020 Rising Middle Class: 2020 marks a setback in Eradication of poverty – but it’s temporary Forecasted 2020 increase of extreme poverty by 70-100 Mio. individuals to a total of 700 million people globally* * The Economist 26.9.2020 Income per Day/Capita (adjusted for purchas
Slide 27: Additional Aspects of the New Normal post-COVID-19 World
27 ｜Capital Market Day 2020 Additional Aspects of the “New Normal” post-COVID-19 World Sustainable Packaging and Beyond Roughly 1kg of plastic waste per person / year is leaking into the world’s oceans globally1 → Consumers, regulators and our customers are no longer willing to accept this situation
Slide 28: Agenda
28 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 29: Organizational Notes on Q&A Session
29 ｜Capital Market Day 2020 Organizational Notes on Q&A Session If you have inquiries, please make use of the “raise your hand” feature When not talking, please mute your microphone ?…
Slide 30: Agenda
30 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 31: Our Strategy for Shaping Krones' Future in the New Normal
31 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 32: Our Strategy for Shaping Krones' Future in the New Normal
32 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 33: Adaptation of Capacities
33 ｜Capital Market Day 2020 Adaptation of Capacities Extensive, but targeted use of government furlough schemes (Kurzarbeit) in departments with low utilization Temporary Temporary insourcing of service contracts to increase internal utilization Termination of temporary contract workers wherever pos
Slide 34: Capacity Adjustment Krones AG Entity / Germany
34 ｜Capital Market Day 2020 Capacity Adjustment Krones AG Entity / Germany 10,707 -15 % (-1,637) -22 to -25% FTE‘S Thereof: 10,248 Capacity 1,201 & Target 9,071 Efficiency 2022 466 - 807 sustainable 691 9,072 170 8,545 8,413 8,200 – 8,400 reduction FTE‘S of temps 300 and own 200 FTE‘s 7,700-7,900 9,
Slide 35: Our Strategy for Shaping Krones' Future in the New Normal
35 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 36: Portfolio optimization in Krones House
36 ｜Capital Market Day 2020 Portfolio optimization in Krones House Processing Technology: Review ongoing – Initiated: unbundling and stand-alone ability – Priority: brewery activities – Halt on acquisitions: utilize current footprint, leverage China and India Digitalization – Update on CMD 2020 Bott
Slide 37: Why we carve out Steinecker Breweries Unit: Differing Business Models
37 ｜Capital Market Day 2020 Why we carve out Steinecker Breweries Unit: Differing Business Models Equipment for Equipment for Filling & Packaging Different Breweries 5 operational requirements Machinery Plants/ Systems Systems Short investment cycles (~10 years) Long investment cycles (>30 years) Pr
Slide 38: Update Current Status of Carve-Out Breweries/Steinecker
38 ｜Capital Market Day 2020 Update Current Status of Carve-Out Breweries/ Steinecker (Freising Plant) Deliverables as of 12th of November 2020 ▪ Successful appointment of Managing Director & Head of Finance/ Admin for brewery unit ▪ IT separation effort in advanced stage ▪ New organizational chart s
Slide 39: Our Strategy for Shaping Krones' Future in the New Normal
39 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 40: A strong presence on all continents allows us to capture growth & saving potentials
40 ｜Capital Market Day 2020 A strong presence on all continents allows us capture growth & saving potentials worldwide…… …and lowers our exposure to protectionist trade policies.
Slide 41: Ramp-Up of Krones Debrecen / Hungary Facility
41 ｜Capital Market Day 2020 Ramp-Up of Krones Debrecen / Hungary Facility Update November 2020 Over 15.000h of utilization in October 2020 production Manufacturing fully operational First pre-assemblies successfully completed We confirm our July 2020 timeline and expect full operation by Q1/20
Slide 42: Best Cost Country Sourcing and further Procurement Levers
42 ｜Capital Market Day 2020 Best Cost Country Sourcing and further Procurement Levers BCC Sourcing Approach ▪ Labor costs ▪ China 1 Price ▪ Reduction of 1 ▪ Infrastructure 2 ▪ Asia / Pacific 3 4 Material Costs 5 Order 2 Quality ▪ Risks ▪ India ▪ Increased Selection Regional Ramp-up Targets/ Localiza
Slide 43: Our Strategy for Shaping Krones' Future in the New Normal
43 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 44: Depth & Flexibilization of Value Chain
44 ｜Capital Market Day 2020 Depth & Flexibilization of Value Chain – Continuous Improvement Process Machine Future Value Chain today Modules Employed Capital Units Parts We assess and optimize the depth of our value chain to strengthen profitability & flexibility.
Slide 45: Agenda
45 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 46: Our Strategy for Shaping Krones' Future in the New Normal
46 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 47: Krones Digital Solutions – Securing our Market Position and enabling Growth
47 ｜Capital Market Day 2020 Krones Digital Solutions – Securing our Market Position and enabling Growth Digital machine option Extension/enhancement of stand-alone hardware with digital add-ons, e.g. to achieve an increase in productivity in the customer's production Krones as provider of the leadin
Slide 48: Our Strategy for Shaping Krones' Future in the New Normal
48 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 49: Approximately 50% of Krones' current addressable Market is Plastic-based
49 ｜Capital Market Day 2020 Approximately 50% of Krones’ current addressable Market is Plastic-based Non-Plastics - Krones Scope Plastics - Krones Scope Non-Plastics - Out of Scope Plastics - Out of Scope Plastics: 34% of all containers, ~50% within Krones scope We are well aware of our exposure to
Slide 50: Our Key Accounts are looking towards Recycling to address Plastic Waste
50 ｜Capital Market Day 2020 Our Key Accounts are looking towards Recycling to address issues concerning Plastic Waste Recycled Content Target PepsiCo 25% until 2025 Our Base Case Assumption for 2030 Coca-Cola 50% until 2030 Nestlé (Water) 50% until 2025 Dr Pepper Snapple 30% until 2025 ~50% average
Slide 51: European Circular Economy Stakeholder Platform commitments
51 ｜Capital Market Day 2020 European Circular Economy is a proud member and made the following voluntary commitments1 Stakeholder Platform 1Commitments are voluntary and do not constitute or imply any legal obligations, commercially binding offers or product guarantees 1 rPET Compatibility By 2025,
Slide 52: Our Strategy for Shaping Krones' Future in the New Normal
52 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 53: Krones' Pricing and Project Selection Tactics during the COVID-19 Crisis
53 ｜Capital Market Day 2020 Krones’ Pricing and Project Selection Tactics during the COVID-19 Crisis Market Growth & Pricing Model → Base Case Estimates Market Market Market Market Growth Growth COVID-19 Market Growth Growth contraction Growth Pricing Securing Pricing Pricing Pricing Volume Pricing
Slide 54: Increased Pricing Power through value-adding Technology: LineXpress PET Line
54 ｜Capital Market Day 2020 Increased Pricing Power through value-adding Technology: LineXpress PET Line Information on this page do not constitute an offer, guarantee or binding description of product properties. Case Study Technical Obsolescence → PET lines after approximately 14 – 20 years (wear
Slide 55: Our Strategy for Shaping Krones' Future in the New Normal
55 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 56: Krones Climate Strategy 2030: Our new Climate Targets
56 ｜Capital Market Day 2020 Krones Climate Strategy 2030: Our new Climate Targets by 2030 CO2 emissions Climate Target 1: -25% Reducing the absolute Corporate Carbon Footprint (Scope 1 + Scope 2) of the KRONES Group by 80% by the year 2030 (base year: 2019) and operational climate neutrality by the
Slide 57: Lifecycle Comparison of Beverage Packaging Carbon Footprint
57 ｜Capital Market Day 2020 Lifecycle Comparison of Beverage Packaging Carbon Footprint 500ml Carbonized Softdrink Beverage Packaging1 1Source: Fehringer, R. (2019) Ökobilanz für Gebinde aus PET und anderen Materialien [for ALPLA Werke] Carbon Footprint in g CO²-equivalent2 2Scope: Production, Filli
Slide 58: Food Waste accounts for >6% of global Carbon Emissions – we save Food!
58 ｜Capital Market Day 2020 Food Waste accounts for >6% of global Carbon Emissions – we save Food! Total Food Waste Higher tolerance for input raw materials, lower 42 in% of Production production losses & better preservation/ shelf life Processing Filling & Packaging Source: WRI analysis based on FA
Slide 59: Krones' Position on Climate Change: Doing well by doing good!
59 ｜Capital Market Day 2020 Krones’ Position on Climate Change: Doing well by doing good! 1 Direct and indirect energy-related CO2 emission (metric tons per €1 million in consolidated revenue) External Product Range Internal Value Chain Packaging Solutions Approach Our enviro program: Taking energy
Slide 60: Our Strategy for Shaping Krones' Future in the New Normal
60 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 61: We will take you on a Journey to Krones' Future Markets across the World
61 ｜Capital Market Day 2020 We will take you on a Journey to Krones’ Future Markets across the World Rising Aspiring Resilient Africa Asia North America The world’s growth Lasting economic Who says developed story for the next growth with no end in market cannot grow three decades ahead. sight any t
Slide 62: We will take you on a Journey to Krones' Markets across the World
62 ｜Capital Market Day 2020 We will take you on a Journey to Krones’ Markets across the World Rising Aspiring Resilient Africa Asia North America The world’s growth Lasting economic Who says developed story for the next growth with no end in market cannot grow three decades ahead. sight any time soo
Slide 63: Africa is much bigger than you think
63 ｜Capital Market Day 2020 Africa is much bigger than you think – quite literally… Due to the ubiquitous Mercator cartographic projection, areas near the equator appear much smaller than they are… BY-CC 4.0 Jakub Nowosad
Slide 64: UN Projections foresee Africa overtaking Europe & Americas combined by 2035
64 ｜Capital Market Day 2020 UN Projections foresee Africa overtaking Europe & Americas combined by 2035 Population by country, available from 1800 to 2100 based on Gapminder data, HYDE, and UN Population Division (2019) medium variant scenario projections. Visualization CC-BY OurWorldInData.org/worl
Slide 65: We are investing in the size and skills of our employee base across MEA
65 ｜Capital Market Day 2020 We are investing in the size and skills of our employee base across MEA Number of Employees Region Africa 671 452 LCS Center East Africa Kenia LCS Center West Afrika Nigeria 376 386 393 2015 2016 2017 2018 2019 Krones Center East Africa Ethiopia Krones Southern Africa Sou
Slide 66: We will take you on a Journey to Krones' Markets across the World
66 ｜Capital Market Day 2020 We will take you on a Journey to Krones’ Markets across the World Rising Aspiring Resilient Africa Asia North America The world’s growth Lasting economic Who says developed story for the next growth with no end in market cannot grow three decades ahead. sight any time soo
Slide 67: Asia Market Outlook & Potential
67 ｜Capital Market Day 2020 Asia Market Outlook & Potential You think the Beverage Market in Asia is running out of steam? Think twice... Our Customer Nongfu Spring’s IPO amid the 2020 pandemic briefly made 2Bloomberg Quotation 9633:HK & EURHKD:CUR, 29.10.2020, 9:45 AM CET Zhong Shanshan the richest
Slide 68: Asia – Focus on Building our local Engineering, Manufacturing and Service Setup
68 ｜Capital Market Day 2020 Asia – Focus on Building our local Engineering, Manufacturing and Service Setup Number of Employees Region APAC + China 1801 1546 1342 1110 Krones China (Taicang) 953 Krones-Izumi Singapur 2015 2016 2017 2018 2019 Krones Thailand Krones South Korea We mitigate our risk ex
Slide 69: We will take you on a Journey to Krones' Markets across the World
69 ｜Capital Market Day 2020 We will take you on a Journey to Krones’ Markets across the World Rising Aspiring Resilient Africa Asia North America The world’s growth Lasting economic Who says developed story for the next growth with no end in market cannot grow three decades ahead. sight any time soo
Slide 70: Developed Markets – Krones Persistent Strength in North America
70 ｜Capital Market Day 2020 Developed Markets – Krones Persistent Strength in North America CAGR = 16,45% Revenue in m € Region North / 683 Central America 545 533 505 438 Krones USA, Franklin (WI) US Customer (Bottling Line) 274 2014 2015 2016 2017 2018 2019 Canadian Customer (Brewhouse) Wide CSD C
Slide 71: Our Strategy for Shaping Krones' Future in the New Normal
71 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 72: The New Normal will drive further Growth in Intralogistics
72 ｜Capital Market Day 2020 The “New Normal” will drive further Growth in Intralogistics COVID-19 induced changes that are here to stay in the “New Normal”
Slide 73: Intralogistics: Strategic Rationale within Krones Group
73 ｜Capital Market Day 2020 Intralogistics: Strategic Rationale within Krones Group Opening the Door to new Market Segments System Logistics has long-standing customer relations beyond beverage industry – a unique opportunity to build upon for venturing into new markets Delivering Growth & Risk Dive
Slide 74: Our Strategy for Shaping Krones' Future in the New Normal
74 ｜Capital Market Day 2020 Our Strategy for Shaping Krones’ Future in the New Normal Shaping the Future Saving the Future Designing the Future → Costs and Structure → Innovation and Growth ▪ Adaptation of capacities ▪ Digital & remote solutions for the “New Normal” Short-term Short-term ▪ More effi
Slide 75: Krones R&D Programs: Industries & Packaging
75 ｜Capital Market Day 2020 Krones R&D Programs: Industries & Packaging Sustainable High Performance Lean Glass Advanced Hygienics@ Digital Plastic Packaging Flexibility Plant System Aseptic Flexible Can Line Ecosystem All CSD & Water CSD & Beer Sensitives & Dairy CSD & Beer Beverage Industry Each R
Slide 76: Agenda
76 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 77: Net Cash, free Credit Lines and high Equity Ratio in Q3
77 ｜Capital Market Day 2020 Net Cash, free Credit Lines and high Equity Ratio in Q3 Liquidity reserves > €1bn Equity in EURm and equity ratio in % Used credit lines 255 EURm 1,433 1,330 1,370 1,314 1,226 Cash 177 EURm 43.8% 43.2% 41.3% 41.7% 39.9% Free credit lines 800 EURm 2016 2017 2018 2019 2020
Slide 78: Focus on Cash, Net Working Capital and Capex
78 ｜Capital Market Day 2020 Focus on Cash, Net Working Capital and Capex Net Working Capital development Capex development in % in % of Sales of Sales 28-29% 3.2% corridor 27.3% 27.3% 2.7% 3.0% corridor 26.9% 2.1% 122 26-28% 1.7% 2.0% 108 in EURm 24-26% 78 ~55 2017 2018 2019 2020 2021 2022 2017 2018
Slide 79: Roadmap to increase Profitability
79 ｜Capital Market Day 2020 Roadmap to increase Profitability 2020 Programs to improve efficiencies 2023 Program Structure & Global Footprint Portfolio Growth Process ▪ Adjust capacities ▪ Plant Hungary ▪ Reshape product ▪ Pricing ▪ Product cost ▪ Plant China portfolio ▪ Innovations in reduction ▪ L
Slide 80: Krones Group KPIs Actuals, Outlook 2020 and Base Case 2021/2022
80 ｜Capital Market Day 2020 Krones Group KPI‘s Actuals, Outlook 2020 and Base Case 2021/2022 Actual Actual* Actual * Outlook* Base Case Base Case EURm 2017 2018 2019 2020 2021 2022 SALES 3,691 3,854 3,959 ~ 3,300 3,300 – 3,400 3,500 – 3,600 EBITDA 9.2% 8.7% 6.6% 5.5% - 6.0% 6.5% - 7.5% 8.0% - 9.0% m
Slide 81: Our Midterm Targets remain unchanged
81 ｜Capital Market Day 2020 Our Midterm Targets remain unchanged… Growth EBITDA margin Working Capital 2% - 5% 9% - 12% 24% - 26% (organic growth) (EBT margin 6% - 8%) …and they are achievable in 2023
Slide 82: Agenda
82 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 83: The Global Impact of COVID-19 is severe, but growth fundamentals remain intact
83 ｜Capital Market Day 2020 The Global Impact of COVID-19 is severe,… Travel Restrictions On-Trade Sales Supply Chain …but long-term Growth Fundamentals remain intact… Population Growth Middle Class Urbanization …and Krones is well positioned for the “New Normal”! Remote & Digital Sustainable Locali
Slide 84: Agenda
84 ｜Capital Market Day 2020 Agenda ▪ Review Financials Q3/2020 ▪ Where do we stand in times of pandemic ▪ Feedback from our customers ▪ Long-term megatrends --- Discussion/ Q&As --- ▪ Shaping our future ▪ Securing our future: Costs & structures ▪ Designing our future: Innovation & Growth ▪ Financial
Slide 85: Organizational Notes on Q&A Session
85 ｜Capital Market Day 2020 Organizational Notes on Q&A Session If you have inquiries, please make use of the “raise your hand” feature When not talking, please mute your microphone ?…
Slide 86: Disclaimer
86 ｜Capital Market Day 2020 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 s
Slide 87: We do more.
Digitalisation Process Bottling and Intralogistics Lifecycle technology packaging equipment Service We do more.