Krones Ag · XETR:KRN
Krones — Investor Day (September 2022)
89 slides from Krones's investor day presentation, Sep 15, 2022
Slide 1: Capital Market Day
Capital Market Day 15th September 2022 Christoph Klenk, CEO Norbert Broger, CFO Thomas Ricker, CSO Markus Tischer, Board Member IOS Bülent Bayraktar, Head of Process Technology Luigi Panzetti, System Logistics CEO
Slide 2: Agenda
Agenda 01 Welcome 02 Strategic Overview and Target Picture 2025 and beyond – Christoph Klenk 03 Deep dive: Filling and Packaging Technology – Thomas Ricker/Markus Tischer 04 Deep dive: Process Technology – Bülent Bayraktar 05 Deep dive: Intralogistics – Luigi Panzetti 06 Financial Overview – Confirm
Slide 3: Welcome
01 Welcome
Slide 4: Speakers
Speakers Christoph Klenk Norbert Broger Markus Tischer Thomas Ricker Bülent Bayraktar Luigi Panzetti CEO CFO Board Member CSO Head of Process System Logistics IOS Technology CEO 4 Krones Capital Market Day 2022
Slide 5: Strategic Overview and Target Picture 2025 and beyond
02 Strategic Overview and Target Picture 2025 and beyond Christoph Klenk
Slide 6: Krones major pillars to drive further success
Krones major pillars to drive further success Customer Innovation & Target Picture Economics Satisfaction Technology 2025+ We keep our Our solutions drive Our new target We manage promises in project customer costs in picture drives spirit profitability by execution and after operation down and purp
Slide 7: Krones markets provide continuous and sustainable growth
Krones markets provide continuous and sustainable growth Beverage Consumption Alternative Proteins Intralogistics Global volume, bn liters1 Global consumption, bn tons² Warehouse Automation market, bn €3 +3% p.a. +13% p.a. +12% p.a. 1,428 1,460 1,492 24 47 1,342 1,389 1,267 13 27 2020 2021 2022 2023
Slide 8: Changing customer needs provide new opportunities for Krones
Changing customer needs provide new opportunities for Krones New Normal Opportunities for Krones Agenda on Energy and CO2 “must have” climate change footprint reduction Water and food waste Resource efficiency obligation reduction Significant Digital operating growth potential and business essential
Slide 9: Innovation and internationalization drive Krones growth strategy
Innovation and internationalization drive Krones growth strategy Innovation & 2021 2025 Technology R&D spending € 174m +40% Krones digital 450 people +50% IP 6,440 IPs +15% New line -30% reduction in 100 days installation time duration Internationalization 2021 2025 Global footprint 80% Germany +50%
Slide 10: Solutions beyond tomorrow
New Target Picture …to exploit the full value of our future opportunities and to drive transformation! Our Vision Sustainable and affordable beverages, food and essentials for everyone and everywhere We develop solutions beyond expectations for our customers, humanity and our planet Our Mission We l
Slide 11: Solutions beyond tomorrow – Our strategic focus
Solutions beyond tomorrow – Our strategic focus Process Technology Filling and Packaging Technology Intralogistics Drive food and Implement integrated Provide fully automated, beverage innovation packaging solutions flexible intralogistics Deliver superior services Shape sustainability Shape sustain
Slide 12: Krones transformation journey to drive value for our customers
Krones transformation journey to drive value for our customers Sustainability Digital Product Organisational & Transformation Transformation Transformation Process Transformation › Energy and water › Modular line and › Innovation on line-level › Supply Chain reduction business models of the › Standa
Slide 13: Digitalization at Krones – Core topics
Digitalization at Krones – Core topics Transfor- Cloud-based Data driven Performance- Internal mation into software customer based Performance digital lines platform with support to business by process automation, for filling and portfolio of value improve models (SLA) innovative working packaging p
Slide 14: Krones.digital: Driving the digital transformation
Krones.digital: Driving the digital transformation 200 120 › 450 digital experts lead our digital experts experts transformation in digitalization in operations at line level › One organization ensures best ecosystems system architecture › One architecture seamless from automation to digital cloud s
Slide 15: Sustainability at Krones – Core topics
Sustainability at Krones – Core topics Energy Sustainable and Water Food Solutions Solutions In terms of Sustainability, Solutions beyond tomorrow means: KRONES enables a climate-neutral, circular customer production plant Circular for sustainable drinks and food Economy Solutions Together with our
Slide 16: Steering Sustainability Transformation and Performance
Steering Sustainability Transformation and Performance Challenges Feeding the ESG performance Climate Change Plastic Littering World Solutions Sustainable Value Chain Energy and Media Circular Economy Sustainable Food • Developing and pursuing a • Bringing Future Line • Strengthen Recycling • Focusi
Slide 17: Our performance: Carbon emissions (Scope 1 and Scope 2)
Our performance: Carbon emissions (Scope 1 and Scope 2) 100% -13% 49,865 Reducing the absolute Corporate Carbon Footprint (Scope 1 + Scope 2) 43,493 -32% of the KRONES Group by Forecast CO2 in metric tonnes -80% -44% 34,155 28,000 by the year 2030 (base year: 2019) -80% and reaching operational clim
Slide 18: Sustainability goals Scope 3 downstream
Sustainability goals Scope 3 downstream › with energy efficiency projects and future line concepts 100% 406,092 -25% › incl. all measures: Current CO2 in metric tonnes status: -3% ▪ green energy supply, 304,569 ▪ digitally enabled energy saving solutions 2019 … 2030 Base Year Target Year Our transf
Slide 19: Krones levers to reduce the product carbon footprint of beer
Krones levers to reduce the product carbon footprint of beer CO2 allocation of a brewery, in %1 Krones levers to reduce CO2 11% Packaging Circular Economy › Light-weighting -25% 13% › Handling of recycled material 37% Production Process Energy and Media › Energy efficiency >-25% 24% 15% › Use of ren
Slide 20: enviro - Energy and Water Solutions for a green customer production
enviro - Energy and Water Solutions for a green customer production 80% 70% › Conversion to an even more 70% energy- and water-saving portfolio 60% 50% › Increasing sales potential 40% 38% 30% OI-enviro net in % › CO2 target achievements for 20% 17% Krones and our customers 10% 8% 7% 0% 2019 2020 20
Slide 21: Krones sustainability ranking
Krones sustainability ranking Industry average 2021 Ambition long-term No medal Top 50% Top 25% Top 5% Top 1% Industry average 2021 Ambition long-term D C B A External benchmarks confirm our strong sustainability performance and we are striving for more 21 Krones Capital Market Day 2022
Slide 22: Deep dive: Filling and Packaging Technology
03 Deep dive: Filling and Packaging Technology Thomas Ricker/Markus Tischer
Slide 23: Measures at a glance: segment Filling and Packaging Technology
Measures at a glance: segment Filling and Packaging Technology Programmes to improve growth and efficiency 2022 expectation Program Structure and Global Portfolio Growth process footprint Revenue ~ € 3.2bn › Adjust structure › Expand › Reshape product › Market growth, and processes for production in
Slide 24: Product and market trends driving our products
Product and market trends driving our products Underlying driver PET is back › Greater availability › Global recycling initiatives › Reduced CO2 footprint compared to other packaging types › Highly attractive products due to shape and design options Aseptic gains momentum › US hotfill market to be c
Slide 25: Market drivers for innovation and lifecycle services
Market drivers for innovation and lifecycle services Underlying driver Energy reduction and CO2 › Strong demand for any solution to reduce energy and footprint resource consumption, driven by ▪ ESG compliance ▪ Cost savings Water reduction › “Saving water” is among top management priorities › Tailor
Slide 26: Future requirements of a PET line
Future requirements of a PET line Today Tomorrow Change in % 20-70 products (SKUs) >100 products (SKUs) +100% Ø 5h product change frequency <1h product change frequency -80% 3 operators 1 operator -66% 50 bottles/m² (per hour) >70 bottles/m² (per hour) +40% Converter business for preforms On-site pr
Slide 27: Update: Customer expectations fulfilled
Update: Customer expectations fulfilled Aseptic PET PET lines Glass lines Can lines lines Water CSD CSD Beer CSD Beer Sensitives Dairy industries Focus High-speed Sustainable sec. highlights AI-based inspection Dairy alternatives Solutions PET line packaging New filler Enlarged performance Flexible
Slide 28: New Can Line design: up to 25% smaller footprint
New Can Line design Compact Can Line - 2021 New Block System combining filling and pasteurizing due to new line control: Up to 25% smaller footprint › Less resources for the lines Compact Can Line - 2023 › Further light-weighting of cans › Reduced energy consumption -25% 28 Krones Capital Market Day
Slide 29: Sustainable Solutions reduce carbon footprint (1): New LitePac Top
Sustainable Solutions reduce carbon footprint of our customers (1): New LitePac Top Secondary Packaging Effect of chosen secondary packaging on dry part 1.100 1.000 Carbon Footprint in t CO2/a* 900 800 700 -80% 600 500 400 300 200 100 0 Shrinkpac LitePac Top Krones Vision: no secondary packaging fro
Slide 30: Sustainable Solutions reduce carbon footprint (2): Aseptic and rPET replace Hotfill
Sustainable Solutions reduce carbon footprint of our customers (2): Aseptic and rPET replace Hotfill Effect of chosen filling process and bottle material 35.000 30.000 Carbon Footprint in t CO2/a* 25.000 -80% total reduction 20.000 15.000 10.000 5.000 Krones Vision: Replacing all Hotfill lines with
Slide 31: Circular Economy Solutions – Recycling Solutions
Circular Economy Solutions – Recycling Solutions Recycling as a USP With its unique portfolio and know-how, Krones offers both packaging and recycling solutions Blow- Moulding Primary Recycling Packaging Reverse Secondary Logistics Packaging Closed-loop recycling for different materials: Point of Wa
Slide 32: Market potential for Krones recycling business
Market potential for Krones recycling business Market potential, €m Recycling business growth driven by › consumer awareness › legal requirements › diversification of recycling materials €100 m targeted turnover recycling solutions by 2025 with PET, PP, HDPE, LDPE, PS Krones pushes recycling busines
Slide 33: Strong momentum for Lifecycle Services
Strong momentum for Lifecycle Services (LCS) driven by growing line base and superior customer service Connected lines Increasing LCS market share leads to over- Global proportional growth network Transition towards “Managed by Krones” + 4.5% CAGR of LCS relevant line base 2020 to 2025 33 Krones Cap
Slide 34: Krones continues its strategy towards “Managed by Krones”
Krones continues its chosen strategy towards “Managed by Krones” to gain further market shares Managed by Krones “Performance commitments by Krones“ Additional support and Supported performance by Krones commitments for “Additional Krones customers in the support by Krones Ecosystem Built Krones“ by
Slide 35: Based on our connected line base, we deliver superior customer services
Based on our connected line base, we deliver superior customer services Krones Network supports Krones.world drives Intelligent Operating System customers globally digital services enables smart supply chain mgmt Connected line base 35 Krones Capital Market Day 2022
Slide 36: Krones network ensures customer proximity around the globe
Krones network ensures customer proximity around the globe ~ 3,000 service engineers globally > 100 subsidiaries and locations across the globe Global spare part availability Digitalized support solutions The Krones network proved a success factor during the Covid-19 pandemic and will also provide t
Slide 37: Krones.world bundles all digital customer services
Krones.world bundles all digital customer services along the supply chain in one platform and is highly appreciated by our customers Detailed next > 17% of LCS business fully engaged in Krones.world Cloud Services > 29,000 registered customers Digital Service Center Krones.shop Performance Parts Ass
Slide 38: Central elements of Krones.world (1): Remote Support
Central elements of Krones.world (1): Remote Support Remote Support is high in demand Main customer and Krones benefits Yearly remote access in thd › Response time › Costs savings 11% p.a. 74 70 › No travel time and cost 58 › Availability of best experts 52 › Independence of Covid-19 travel 44 47 re
Slide 39: Central elements of Krones.world (2): Smart Commissioning
Central elements of Krones.world (2): Smart Commissioning Main customer and Krones benefits › Systematic commissioning approach based on real-time data and advanced analytics by using the Krones.world IIOT solutions › Upscaling of service expertise › Significant reduction of commissioning costs › Fa
Slide 40: Krones.world solutions to face customer challenges
Krones.world solutions to face customer challenges Customer challenges Selective Krones solutions Downtimes Automated Shopfloor Waste Parameter Guidance optimization Maintenance Planning Production Parameters Performance Line Control Service Employee Training and Knowledge Changeovers Digital Spare
Slide 41: Intelligent operating system for smart supply chain management
Our intelligent operating system enables smart, efficient and sustainable supply chain management focused on Lifecyle Service SUSTAINABILITY E2E TRANSPARENCY ENGINEERING AI-based demand forecasting SERVICE SUPPORT PROCESS GLOBAL NETWORK INTELLIGENT OPERATING OPTIMIZATION Automated PLANNING SYSTEM MA
Slide 42: Cloud-based Service Level Agreements
Cloud-based Service Level Agreements Digital safety rope and performance booster 42 Krones Capital Market Day 2022
Slide 43: Based on our connected line base, we deliver superior customer services
Based on our connected line base, we deliver superior customer services Krones Network supports Krones.world drives Intelligent Operating System customers globally digital services enables smart supply chain mgmt Connected line base 43 Krones Capital Market Day 2022
Slide 44: In timeline through the pandemic – Client example Petrópolis, Uberaba
In timeline through the pandemic – Client example Petrópolis, Uberaba For reference: Youtube „In Timeline durch die Pandemie“, https://youtu.be/uWJmqQs_vXQ 44 Krones Capital Market Day 2022
Slide 45: Deep dive: Process Technology
04 Deep dive: Process Technology Bülent Bayraktar
Slide 46: Measures at a glance: segment Process Technology
Measures at a glance: segment Process Technology Programmes to improve growth and efficiency 2022 expectation Program Structure and Global Portfolio Growth process footprint Revenue ~ € 360m › Adjust structure › Increase › Increased focus › Market growth, and processes for collaboration on after-sal
Slide 47: PT - Technology diversification & global setup drive growth
PT - Technology diversification & global setup drive growth Yesterday Today Tomorrow 2016 2022 2025 Revenue Mix Sustainable Water & LCS Sustainable Traditional (approximation) Energy Energy Brewery Beverages Solutions Solutions Alternative New Proteins Applications LCS Traditional Brewery Alternativ
Slide 48: Process Technology markets - Strategic growth beyond tomorrow
Process Technology markets - Strategic growth beyond tomorrow Alternative Protein Technology Water Technology Sustainable Energy Solutions Plant-based & advanced fermentation Water treatment & water design Energy efficiency & fossil fuel substitution CAGR >15% CAGR >6% CAGR >20% Boston Consulting Gr
Slide 49: Beyond Dairy - Krones Alternative Protein Technology Landscape
Beyond Dairy - Krones Alternative Protein Technology Landscape Expected cost parity with Plant-Based conventional protein products Proteins from plants are processed BCG (2021) Food for Thought: The Protein Transformation to drinks Key Technology → Enzymatic Reactions Krones Background → Mashing & M
Slide 50: Plant-based Dairy alternatives: turn-key solutions from Krones
Plant-based Dairy alternatives Turn-key solutions from Krones from legumes (e.g. soy, peas, lupins) from nuts Krones Technology (e.g. almond, coconut) Turn-key facilities for plant-based dairy alternatives from grains (e.g. oats, rice, spelt) From solid to liquid – Krones provides technology for all
Slide 51: Advanced Fermentation
Advanced Fermentation The protein source more efficient than animals Bacteria, yeast, fungi or algae Animal-free proteins Fermentati on Liquid carbohydrate feedstock Krones is leveraging beer fermentation know-how to create food solutions beyond tomorrow 51 Krones Capital Market Day 2022
Slide 52: Advanced Fermentation: emerging industry leaders partner with Krones
Advanced Fermentation Emerging industry leaders partner with Krones produces delicious, nutritious & sustainable meat alternatives made from mushroom root Sales Funding Production Meati’s steaks & cutlets were an Since 2020, investors provided Large facility built in 2022 - the instant hit and sold
Slide 53: Process Technology markets - Strategic growth beyond tomorrow
Process Technology markets - Strategic growth beyond tomorrow Alternative Protein Technology Water Technology Sustainable Energy Solutions Plant-based & advanced fermentation Water treatment & water design Energy efficiency & fossil fuel substitution CAGR >15% CAGR >6% CAGR >20% Boston Consulting Gr
Slide 54: Water technology: Krones value chain beyond equipment sales
Water technology Krones value chain beyond equipment sales Ingredients Engineering Supply Services generates recur- R&D and water ring sales of pre- design for formulated salt costumers recipes Equipment Business Hydronomic machines 54 Krones Capital Market Day 2022
Slide 55: Makkah Water KSA – large-scale water treatment by Krones
Water technology Makkah Water KSA – large-scale water treatment by Krones 330,000 litres of water per hour 55 Krones Capital Market Day 2022
Slide 56: Process Technology markets – Strategic growth beyond tomorrow
Process Technology markets – Strategic growth beyond tomorrow Alternative Protein Technology Water Technology Sustainable Energy Solutions Plant-based & advanced fermentation Water treatment & water design Energy efficiency & fossil fuel substitution CAGR >15% CAGR >6% CAGR >20% Boston Consulting Gr
Slide 57: Brewnomic – Concept beer beyond net-zero emissions
Brewnomic – Concept beer beyond net-zero emissions Conventional Brewhouse Brewnomic Modules + Biomass Conversion Heat source Heat source Natural gas Spent grain (fossil fuel) (side stream) Direct emissions Indirect emissions Saved emissions Saved emissions Burning natural gas Animal feed for cows Su
Slide 58: Brewnomic – Self-sufficient energy flows in brewing
Brewnomic – Self-sufficient energy flows in brewing Exemplary Thermal energy breakdown (depending on implemented solutions) Thermal energy kWh/hl Energy Surplus 0,6 5,9 Standard Equi Stromboli Low-temp Dynafill Lavatec LinaFlex Remaining Potential of requirement Therm brewery requirement residuals B
Slide 59: Krones Process Technology – Solutions beyond tomorrow
Krones Process Technology – Solutions beyond tomorrow Persistent profitable business unit through decisive action Flexible resilient setup built to master a volatile world Clear focus on high growth future industries 59 Krones Capital Market Day 2022
Slide 60: Deep dive: Intralogistics
05 Deep dive: Intralogistics Luigi Panzetti
Slide 61: Measures at a glance: segment Intralogistics
Measures at a glance: segment Intralogistics Programmes to improve growth and efficiency 2022 expectation Program Structure and Global Portfolio Growth process footprint Revenue ~ € 330m › Improve project › Leverage Mexican › Mix change to › Dynamic market execution hub for US more flexible and grow
Slide 62: System Logistics network ensures global customer proximity
System Logistics network ensures global customer proximity SYSTEM LOGISTICS SPA SYSTEM LTD SYSTEM LOGISTICS GMBH SYSTEM NORTHERN EUROPE Italy UK Germany Sweden • Manufacturing • Project execution and Project • Project execution and Project • Project execution and Project • Project execution and Proj
Slide 63: Warehouse Automation market growth
Warehouse Automation market growth Warehouse Automation Market is growing…1 … however Automation penetration in warehouses is still low1 EUR bn Automation level (%) 100 47.2 90 12% p.a. 80 70 30.0 Long-term achievable 11% p.a. 60 50 target: 60% 16.5 40 Distribution center Distribution center- 30 / c
Slide 64: Trends & technologies driving the intralogistics growth
Trends & technologies driving the intralogistics growth Rise of E-commerce1 Growing AMR2 market3 Global market USD tn Global market USD bn >15% p.a. 45% p.a. >4.9 >9.0 2.8 2.0 2021 2025 2021 2025 E-commerce growing and driving Warehouse AMR2 grows strongly, creating new opportunities especially auto
Slide 65: System Logistics ambition until 2025
System Logistics ambition until 2025 2022 2025 € ~330 m revenues € ~500 m revenues > 5% EBITDA 7 -9 % EBITDA Main drivers › Develop new market segments in the regions (Grocery, E-Commerce, …) › Increase share of automated picking systems for growth › Switch from CAPEX offering to OPEX offering for s
Slide 66: Intralogistics – Core topics
Intralogistics – Core topics Increase Energy Enhance Labour Promote Smarter Face Increasing Efficiency Health and Safety Logistics Complexity Up to 40% Up to 50% Up to 20% savings From hundreds to reduction in energy reduction in FTEs and in logistics cost savings Tens of thousands consumption accid
Slide 67: Intralogistics solutions to increase energy efficiency
Intralogistics solutions to increase energy efficiency Energy efficiency levers › Improved Weight Ratio Machine vs Payload › Install systems to recover the potential and kinetic energy accumulated during lifting or accelerating phases: Super Capacitors › Enhance Motion Systems efficiency Krones solu
Slide 68: Intralogistics solutions to enhance labour health and safety
Intralogistics solutions to enhance labour health and safety Labour health and safety levers › Increased automation in logistics processes to compensate labour shortage › Relieve heavy works with robotics › Increase safety by reducing traffic of manual driven vehicles Krones technology relieves from
Slide 69: Intralogistics solutions to enable smarter logistics
Intralogistics solutions to enable smarter logistics Light formats AGVs1 Storage and Sequencing Smarter logistics levers › Create easy, affordable, scalable & flexible solutions › OPEX vs. CAPEX option › Modularity and standardization AMRs2 › De-materialize Transport Systems › Multiple AGV Solutions
Slide 70: Intralogistics solutions to face increasing complexity
Intralogistics solutions to face increasing complexity Flexible logistics levers › Multi-format Plastic bins & Carton boxes › Single-Case Storage, Sequencing and Palletizing › Increase Storage Efficiency vs Footprint › Automatic multi-SKUs pallet forming › AGVs/AMRs for flexible material flow layout
Slide 71: Intralogistics – Solutions beyond tomorrow
Intralogistics – Solutions beyond tomorrow Robust Growth supported by high market potential and target industries differentiation Bigger share of higher margin solutions creates Increased profitability Leveraging on superior software and robotics capability 71 Krones Capital Market Day 2022
Slide 72: Financial Overview – Confirmation of Targets 2025
06 Financial Overview – Confirmation of Targets 2025 Norbert Broger
Slide 73: Krones Group: 1st HY Key Financials (€ m)
Krones Group: 1st HY Key Financials (€ m) 3,106 Order Intake: +52% to PY 2,044 1,457 +40% +52% 3,015 Order Backlog: +59% to PY 1,893 1,211 +56% +59% 1,699 1,720 1,985 Revenues: +15.4% to PY +1.2% +15.4% 2020 2021 2022 1st HY 1st HY 1st HY › Fast and strong order and sales recovery – significant gain
Slide 74: Krones Group: 1st HY Key Financials (€ m)
Krones Group: 1st HY Key Financials (€ m) EBITDA margin: +0.8 PP to PY 7.0% 8.0% 8.8% Working Capital: -6.5 PP to PY 27.6% 28.1% 21.6% ROCE: +3.5 PP to PY 4.0% 8.3% 11.8% 2020 2021 2022 1st HY 1st HY 1st HY › Significant improvements in profitability and capital utilization as promised › Impacts of
Slide 75: Krones Group: 1st HY Segments
Krones Group: 1st HY Segments Revenue development Segment EBITDA (€ m) (€ m) and EBITDA margin (%) 1,674 161 1,470 1,443 144 Filling and Packaging 134 EBITDA Target Technology: +9.6% +9.8% 2022 Profitable growth +9.3% continues 9-10% 174 9.2 Process Technology: 150 151 1.4 EBITDA Target Successful t
Slide 76: Krones Outlook 2022
Krones Outlook 2022 5% – 8% 8% – 9% 10% – 12% Revenue growth EBITDA margin ROCE We absolutely confirm to achieve our 2022 targets in challenging times 76 Krones Capital Market Day 2022
Slide 77: Efficiency improvement programmes successfully executed
Efficiency improvement programmes successfully executed 2020 Programmes to improve efficiencies – current status 2023 Status: Program Structure and 11/2020 Global footprint Portfolio Growth Process * w/o one-time expenses (structural adjustments) ~ €72m › Adjust capacities ✓ › Hungary plant ✓ › Resh
Slide 78: Financial targets for 2025 remain unchanged
Financial targets for 2025 remain unchanged We have set ourselves Sales (€m) EBITDA margin ROCE (%) challenging but realistic (%) financial targets for 2025: organic 10 – 13 >20 CAGR 5% plus M&A ≥ 5,000 › Sales ≥ €5bn, including minimum €4.5bn due to organic growth 8.6 3,635 › EBITDA 10% ‒ 13% 10 ›
Slide 79: Sales targets 2025 by segments
Sales targets 2025 by segments Growth Sales (€m) and segment share (in %) >5,000 › 3% Global Beverage Market › + Sustainability centred solutions M&A › + Digital and service solutions ~4,000 9 › + Increased packaging scope 3,635 9 › + Innovation 3,326 8.0 82 6.4 8.2 = 5% CAGR 9.5 83.8 84.2 M&A Focus
Slide 80: EBITDA targets 2025 by segments - unchanged
EBITDA* targets 2025 by segments - unchanged Filling and Packaging Technology: EBITDA (in %) Actual* 9.6% to target 12 – 14% 12-14 › Increase global production footprint › Reshape product portfolio 10-13 › Innovation in sustainable filling & packaging 9.3 › Digital products and services 8.5 8.6 7-9
Slide 81: Krones Group: cashflow and cash conversion rate
Krones Group: cashflow and cash conversion rate Free cashflow and cash conversion Free cashflow (without M&A) in €m 350 rate significantly improving 221 203 220 › Strong internal focus on free cashflow 200 149 established 83 89 150 › High discipline in investments › Improvements on working capital t
Slide 82: New performance programmes will improve our earnings and free cash flow
New performance programmes will improve our earnings and free cash flow to achieve our 2025 targets Improve sales Drive innovation in Decrease proportional Optimize investment allo- performance products and processes and fixed costs cation and working capital › New value added pricing › New solution
Slide 83: Investor perspective
Investor perspective Dividend payouts Dividend payouts in € 1.55 1.70 1.70 › Continuous growth in dividend payments 1.25 1.45 1.40 until 2019 reflecting the profitable growth 0.75 path of Krones 0.06 › Strong recovery 2021 after crisis 2019/2020 2014 2015 2016 2017 2018 2019 2020 2021 › Based on app
Slide 84: Krones – an attractive investment
Krones – an attractive investment Sustainability seen as the biggest innovation and growth driver for years to come (CO2 and waste reduction) Digitalization, technology & innovation leader in filling and packaging Leading position in attractive and growing beverage and food market Clear growth path
Slide 85: Discussion/Q&As
07 Discussion/Q&As 85 Krones Capital Market Day 2022
Slide 86: Krones – Booth plan
Krones – Booth plan 86 Krones Capital Market Day 2022
Slide 87: Thank you for your attention!
Thank you for your attention! 87 Krones Capital Market Day 2022
Slide 88: Financial calendar 2022 and 2023
Financial calendar 2022 and 2023 November 4, 2022 Conference Call Group Quarterly statement for the period from 1 January to September 30, 2022 February 23, 2023 Conference Call Group Preliminary figures FY 2022 May 5, 2023 Conference Call Group Quarterly statement for the period from 1 January to M
Slide 89: 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