Krones Ag · XETR:KRN
Krones — Q1 2020 Earnings Presentation
29 slides from Krones's earnings presentation, Apr 29, 2020
Slide 1: Krones Conference Call April 29, 2020
KRONES Conference Call April 29, 2020 Christoph Klenk, CEO Norbert Broger, CFO
Slide 2: Krones Q1 2020
2 ｜KRONES Conference Call April 29, 2020 Krones Q1 2020 Revenue decreased due to the initial effects of the COVID-19 situation by 4.2% year-on-year to €942.0 million between January and March 2020. Overall economic uncertainties have significantly impacted customers’ investment confidence regarding
Slide 3: Financials Q1 2020
3 ｜KRONES Conference Call April 29, 2020 Financials Q1 2020
Slide 4: Krones Highlights Q1 2020
4 ｜KRONES Conference Call April 29, 2020 Krones Highlights Q1 2020 -19.3% €841m 942 Revenue (-4.2%) €m New orders Free cash flow -16.0 5.6% €m (PY -€136.6m) €53.0m EBT margin
Slide 5: EBT/EBITDA Similar to Q1 in Prior Year Despite Lower Sales
5 ｜KRONES Conference Call April 29, 2020 EBT/EBITDA Similar to Q1 in Prior Year Despite Lower Sales 260.0 EBT/EBITDA margin improvement due to: 227.3 -25.7% − Reduction in workforce in Germany − Savings in material costs 112.6 63.0 − Reduction in purchased services − Savings in other expenses (trave
Slide 6: Q1 Order Intake Affected by Covid-19, Especially in March
6 ｜KRONES Conference Call April 29, 2020 Q1 Order Intake Affected by Covid-19, Especially in March Limited Covid-19 impact on Q1 revenue due to order backlog 4,084 3,959 1,126 1,069 919 1,000 997 906 -19.3% -4.2% 1,042 942 841 984 2019 2020 2019 2020 New orders (€m) Revenue (€m)
Slide 7: Krones' Q1 Revenue Split Remains well Balanced
7 ｜KRONES Conference Press Conference Call April & Analyst Meeting - 29th of April 2019 29, 2020 Krones’ Q1 Revenue Split Remains well Balanced Share of revenue (Q1) CIS/Central Asia 2018 2019 2020 Europe 2.5 % 1.6 % 2.8 % 2018 2019 2020 40.4 % 45.0 % 39.8 % China 2,6% 2,8% North America 2018 2019 2
Slide 8: Personnel and Material Costs Q1
8 ｜KRONES Conference Call April 29, 2020 Personnel and Material Costs Q1 Personnel cost (€m) Q1 323.3 321.6 289.8 32.7 33.8 32.0 2018 2019 2020 Personnel costs to total performance (%) Material cost (€m) Q1 491.6 453.6 438.5 50.1 49.7 46.1 2018 2019 2020 Material costs to total performance (%)
Slide 9: Development of Revenue and EBITDA per Segment in Q1
9 ｜KRONES Conference Call April 29, 2020 Development of Revenue and EBITDA per Segment in Q1 Segment Revenue (€m) Q1 2020 EBITDA (€m) Q1 2020 Outlook 2020 Targets 2020 *** Product filling Growth EBITDA margin and decoration +4% +8% -2% 774 834 816 10.5% 11.2% 11.9% Reliable outlook on 80.9 93.5 97.0
Slide 10: Free Cash Flow Improved in Q1 Mainly by Lower Working Capital Increase
10 ｜KRONES Conference Call April 29, 2020 Free Cash Flow Improved in Q1 Mainly by Lower Working Capital Increase Q1 (€m) 2020 2019 Earnings before taxes 53.0 51.5 +/– Other non-cash changes +66.9 +108.3 +/– Changes in working capital -27.3 -200.1 +/– Changes in other assets and liabilities -76.4 -49
Slide 11: Working Capital and ROCE Q1
11 ｜KRONES Conference Call April 29, 2020 Working Capital and ROCE Q1 Working capital* in % ROCE* in % (Q1) of revenue (Q1) 28.2 27.1 26.4 15.3 13.2 11.9 2018 2019 2020 2018 2019 2020 *LTM (Last twelve months)
Slide 12: Krones is Very Well Positioned Financially
12 ｜KRONES Conference Call April 29, 2020 Krones is Very Well Positioned Financially Net cash, free credit lines and high equity ratio in Q1 Liquidity reserves €1bn Equity in €m and equity ratio in % Used credit lines 335€m 1,433 1,380 1,370 1,330 1,226 43.8% 43.2% 41.3% 39.9% 39,6% Cash 345€m Free
Slide 13: Mid-Term Outlook
13 ｜KRONES Conference Call April 29, 2020 Mid-Term Outlook
Slide 14: Krones Mid-Term Targets
14 ｜KRONES Conference Call April 29, 2020 Krones Mid-Term Targets Revenue growth EBITDA margin Working capital to revenue 2-5% 9-12% 22-24% Equivalent to EBT margin 6-8%
Slide 15: Corona Update
15 ｜KRONES Conference Call April 29, 2020 Corona Update
Slide 16: Current Spread of COVID-19: Confirmed Infections per One Million Citizens
16 ｜KRONES Conference Call April 29, 2020 Current Spread of COVID-19: Confirmed Infections per One Million Citizens As of April 23, 2020 Source: European CDC OurWorldInData.org / CC-BY Real infection estimated to be significantly higher because only confirmed/tested infections included in statistics
Slide 17: 2008/09 Financial Crisis vs. COVID-19: Impact on GDP
17 ｜KRONES Conference Call April 29, 2020 2008/09 Financial Crisis vs. COVID-19: Impact on GDP 12 10 Change in GDP in relevant markets 8 COVID-19 Source: 6 COVID-19 forecast based on 2009 base-case scenario from ING Research % change in GDP 4 As of 2 April 2020 2 0 Data 2009 based on International M
Slide 18: Beverage Industry: No Shutdown for our Customers
18 ｜KRONES Conference Call April 29, 2020 Beverage Industry: No Shutdown for our Customers Demand Supply Purchase decisions for consumer Many F&B industry supply chains are staples cannot be postponed regional (transport costs) and supplies indefinitely (unlike discretionary items) typically come fr
Slide 19: How will the Pandemic affect the Beverage Industry throughout the World?
19 ｜KRONES Conference Call April 29, 2020 How will the Pandemic affect the Beverage Industry throughout the World? Preparatory Stockpiling of food, toiletries, health care Based on Nielsen Report 21 April 2020 (modified) Phase A products & pharmaceuticals Fewer store visits with larger shopping Majo
Slide 20: Customers' FY2020 Financial Outlook: Uncertainty amid COVID-19 Pandemic
20 ｜KRONES Conference Call April 29, 2020 Customers’ FY2020 Financial Outlook: Uncertainty amid COVID-19 Pandemic Timeline COVID-19 Major IR Releases Given the uncertainty, volatility and fast-moving developments of the pandemic in the markets in which AB InBev operates, the Company is withdrawing t
Slide 21: Customers' Risk Exposure #1: On-Trade Sales Volumes
21 ｜KRONES Conference Call April 29, 2020 Customers’ Risk Exposure #1: On-Trade Sales Volumes Volume in Liters Monetary Value Off-Trade Supermarkets, Off- licence, Convenience Stores 42% 49% 56% 61% 63% 75% 73% 75% On-Trade 58% 51% 44% 39% Bars, Restaurants, 25% 27% 25% 37% Cafés Beer/Cider CSD Spir
Slide 22: Customers' Risk Exposure #2: Financial Leverage
22 ｜KRONES Conference Call April 29, 2020 Customers’ Risk Exposure #2: Financial Leverage Sample of 10 listed Customers from Brewing, CSD & Spirits Industry Citi Research Estimates (2020) Balance Sheet Leverage Debt Service Coverage Forecast 2020: Net Debt/EBITDA Forecast 2020: Interest/OCF 6 20 18
Slide 23: China: Regional Impact on Krones
23 ｜KRONES Conference Call April 29, 2020 China: Regional Impact on Krones Consumer Sentiment Beverage Industry Krones Operations ▪ Restaurants & services are back in ▪ Strong Q2 rebound expected, ▪ Tenders on track; no major operation, safety measure like potential compensation of Q1 investment pro
Slide 24: USA: Regional Impact on Krones
24 ｜KRONES Conference Call April 29, 2020 USA: Regional Impact on Krones Consumer Sentiment Beverage Industry Krones Operations ▪ Restrictions vary locally ▪ On-trade/catering business down ▪ Krones operations up & running, throughout North America both Beer & CSD post-mix syrup volumes transportati
Slide 25: Krones Focus
25 ｜KRONES Conference Call April 29, 2020 Krones Focus 1. Extensive programme to minimise risk of infections for employees, customers, suppliers, service partners, visitors and other parties and stakeholders related to Krones. 2. Worldwide coordinated business continuity taskforces and action plans
Slide 26: Questions and Answers
26 ｜KRONES Conference Call April 29, 2020 Questions and Answers ? …
Slide 27: 27 ｜KRONES Conference Call April 29, 2020
27 ｜KRONES Conference Call April 29, 2020
Slide 28: Financial Calendar 2020
28 ｜KRONES Conference Call April 29, 2020 Financial Calendar 2020 May 18, 2020 Annual General Meeting (virtual) July 30, 2020 Conference Call Group Q2 2020 and Interim Report as per June 30 October 29, 2020 Conference Call Group Q3 2020 and Quarterly Statement as per September 30 Olaf Scholz Head of
Slide 29: Disclaimer
29 ｜KRONES Conference Call April 29, 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 for