Krones Ag · XETR:KRN

Krones — Investor Day (July 2024)

109 slides from Krones's investor day presentation, Jul 3, 2024

1. Slide 1: Capital Market Day

   Capital Market Day 3rd of July 2024 Christoph Klenk, CEO Uta Anders, CFO Thomas Ricker, CSO Markus Tischer, Board Member IOS Bülent Bayraktar, Head of Process Technology Olaf Scholz, Head of Investor Relations

2. Slide 2: Welcome

   01 Welcome

3. Slide 3: Capital Market Day 2024

   Capital Market Day 2024 3 Krones Capital Market Day 2024

4. Slide 4: Speakers

   Speakers Christoph Klenk Uta Anders Thomas Ricker CEO CFO CSO Markus Tischer Bülent Bayraktar Olaf Scholz Board Member Head of Process Head of Investor IOS Technology Relations 4 Krones Capital Market Day 2024

5. Slide 5: Agenda

   Agenda 01 Welcome 10 mins 11:00 – 11:10 02 Strategic Overview – Christoph Klenk 40 mins 11:10 – 11:50 03 Deep dive: Filling and Packaging Technology – Thomas Ricker/Markus Tischer 40 mins 11:50 – 12:30 Lunch break 60 mins 12:30 – 13:30 Plant tour (incl. virtual broadcast) 60 mins 13:30 – 14:30 04 De

6. Slide 6: Strategic Overview

   02 Strategic Overview Christoph Klenk

7. Slide 7: Structure of strategic overview

   Structure of strategic overview Where we are Which targets Why we achieve How we achieve now we will achieve our targets our targets 7 Krones Capital Market Day 2024

8. Slide 8: Strategic overview: Chapter one

   Strategic overview: Chapter one Where we are Which targets Why we achieve How we achieve now we will achieve our targets our targets 8 Krones Capital Market Day 2024

9. Slide 9: Krones historic performance

   Krones historic performance Revenue and EBITDA performance, 2007-2023 EBITDA-margin, % Revenue; bn € Revenue, External External bn € shock shock EBITDA, % 5 4.7 25 +4.9% p.a. 4.2 3.9 4.0 4 3.7 3.6 20 3.4 3.3 3.2 3.0 3 2.7 2.8 15 2.4 2.5 2.2 2.2 1.9 9.1 9.4 9.6 9.5 9.2 9.7 2 8.8 8.6 8.9 10 7.9 9.2 5.

10. Slide 10: Our view on the global economy and the global beverage market

    Our view on the global economy and the global beverage market Global economy Global beverage market  >3% p.a. expected growth of global GDP in 2024 and 20251  ~3% p.a. annual growth of  Multipolar world of three blocs global consumption until limits global trade 20282  Social erosions put politi

11. Slide 11: Strategic overview: Chapter two

    Strategic overview: Chapter two Where we are Which targets Why we achieve How we achieve now we will achieve our targets our targets 11 Krones Capital Market Day 2024

12. Slide 12: Financial targets 2028: Continuation of our profitable growth

    Financial targets 2028: Continuation of our profitable growth Revenue, bn € EBITDA, % ROCE, % ~7.0 bn > 20 % 4.7 bn 16.3 % 11-13 % 9.7 % 2023 2028 target 2023 2028 target 2023 2028 target With the underlying transformation program in execution Key assumption: No further escalation of geopolitical te

13. Slide 13: ESG targets 2030 and Net-zero 2040

    ESG targets 2030 and Net-zero 2040 Upstream chain Own operations Downstream chain Reducing Scope 3 Reducing Scope Reducing Scope 3 Until 2040 -30% -80% -30% NET- emissions in 1+2 emissions in emissions of sold upstream processes1 our operations1 products1 Suppliers managed Reducing water and Reducin

14. Slide 14: Strategic overview: Chapter three

    Strategic overview: Chapter three Where we are Which targets Why we achieve How we achieve now we will achieve our targets our targets 14 Krones Capital Market Day 2024

15. Slide 15: Solutions beyond tomorrow: Vision and Mission

    New Vision and Mission further strengthened our market reputation and employee engagement 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 lead with inno

16. Slide 16: Well-balanced global revenue split

    Eastern Europe/ Well-balanced global revenue split Central Asia 7% 6% 5% Share of FY revenue, % of total Europe 2021 2022 2023 31% 33% 28% North and 2021 2022 2023 Central America China 21% 22% 25% 8% 8% 7% Middle East/N. Africa 2021 2022 2023 2021 2022 2023 12% 11% 10% South America Asia/Pacific 10

17. Slide 17: Growing order intake provides planning security

    Growing order intake provides planning security Order intake, bn € 5.8 ~5.6 +7% p.a. 5.4 4.1 4.3 3.8 4.0 3.2 3.4 3.3 2.8 3.0 2.5 2.7 2011 2015 2020 2023 2024e Increasing order intake proves the stability of our growth model For full year 2024, further growth is expected and book-to-bill ratio will b

18. Slide 18: Main growth drivers for the global beverage industry

    Main growth drivers for the global beverage industry Growing world Rising middle class population to with >110 million almost 10bn in people joining in 20501 20243 Increasing share of Continuing people living in sustainability focus urban areas among our reaches 70% in costumers to reduce 20502 thei

19. Slide 19: Krones has a strong market position

    Krones has a strong market position Revenue CAGR, 2013-20231 Ø EBITDA margin, 2013-2023, % 4 – 18% Target 2028: 11-13% 5.3% Up to 5% 8.3% Krones Direct competition Krones Direct competition Krones grew faster than its direct competitors over the last decade Profitability increased based on transform

20. Slide 20: Strategic overview: Chapter four

    Strategic overview: Chapter four Where we are Which targets Why we achieve How we achieve now we will achieve our targets our targets 20 Krones Capital Market Day 2024

21. Slide 21: Selective transformation achievements

    Selective transformation achievements Sustainability Digital Product Organizational & Transformation Transformation Transformation Process Transformation  51% less Scope 1  >200 lines  100.000 bottles/hr  Cuttings-edge IT and 2 emissions1 connected new high-speed line landscape via S/4HANA  3%

22. Slide 22: Sustainability transformation: Reduction in Scope 1, 2 and 3

    Sustainability transformation: Significant reduction in Scope 1, 2 and 3 Emissions, t tons of CO2 emissions Status quo and targets 50 43 Status quo: -51% 34 compared to base year 2019 Scope 27 24 Short Term: -80% 1 and 2 10 Net zero Goal from base year to target year 2030 0 Net Zero: -100% 2019 2020

23. Slide 23: Sustainability transformation: Rankings improvement over time

    Sustainability transformation: Rankings improvement over time Krones 2021 Krones 2023 Industry median 2023 No medal C A- C External benchmarks confirm our strong sustainability performance 23 Krones Capital Market Day 2024

24. Slide 24: Sustainability transformation: Market potential for sustainable solutions

    Sustainability transformation: Market potential for sustainable solutions Scope 1&2 emission reduction goals until Market potential until 2030, bn €, assuming 2030 of 4 selective key accounts, t CO2 ~1,000 € investment to reduce 1t CO2 Heineken Not adressable by Krones ~6 bn € currently AB Inbev add

25. Slide 25: Digital transformation: Relevant AI technologies for Krones

    Digital transformation: Relevant AI technologies for Krones Artificial Intelligence Knowledge based AI Machine Learning Time series analysis Logic based Knowledge Deep Learning Representation and Reasoning Answer Set Generative AI Natural Language Programming Processing Optimization, scheduling and

26. Slide 26: Digital transformation: Digital product architecture

    Digital transformation: Digital product architecture developed to serve all new features Krones.digital IV SAP Business Technology Platform All functions to operate a smart factory Generative Data interface AI Know- III All functions for smart Machine IIoT platform ledge- operation of lines online L

27. Slide 27: Digital transformation: Global services

    Digital transformation: Global services  > 6,000 service employees worldwide  3,000 service engineers  1,200 production and supply chain experts  1,800 engineering, support and back office  Worldwide on demand spare parts supply  Next Service Levels through digitalization The Krones service ne

28. Slide 28: Digital transformation: Evolution of Krones LCS Portfolio

    Digital transformation: Evolution of Krones LCS Portfolio Key results Modular Service Lifecycle LCS Products Agreements (MSAs) Alliance >1,000 MSAs Scope  Spare Parts  MSA Support  MSAs plus:  Service  Upgrades  MSA Maintenance  MSA Performance − Shopfloor Guidance − Condition Monitoring >15%

29. Slide 29: Product transformation: R&D spend and innovation highlights

    Product transformation: R&D spend and innovation highlights Krones R&D spend, 2013-2023, Mio € and % of revenue Innovation highlights 200 195 194 15  >7,000 active patents in total 179 164 171 172 168 174 178 150 149  30th rank among international companies at the 132 10 German Patent and Trade Ma

30. Slide 30: Product transformation: Strategic rationale to acquire Netstal

    Product transformation: Strategic rationale to acquire Netstal Strategic rationale  Expanding market position within the injection molding sector  Rapid development of Krones “Line of the Future”, including the unique combination of injection molding and stretch blow molding  Entry into the cap b

31. Slide 31: Product transformation: Netstal and Krones business setup

    Product transformation: Netstal and Krones Group establish a powerful business setup System Know-How Krones bundles molding expertise in new business setup “Advanced Molding Technology” within the segment Filling and Packaging Technology 31 Krones Capital Market Day 2024

32. Slide 32: Product transformation: Business outlook of new business setup AMT

    Product transformation: Business Outlook of new business setup AMT1 Business outlook EBITDA, % of revenue Revenue AMT, Mio € 350 40 > 300 300 35 Growth markets defined ~240 30 Sales force, branding and pricing 250 25 aligned 200 20 R&D roadmap defined 150 15 Digitalization of product portfolio >

33. Slide 33: Organizational & Process Transformation: People development and talent attraction

    Organizational & Process Transformation: People development and talent attraction > 1,200 additional employees in 2023 > 600 apprentices in 2023 Employer brand established globally International collaboration intensified Illustration from our new employer brand 33 Krones Capital Market Day 2024

34. Slide 34: Organizational & Process Transformation: Krones Recycling

    Organizational & Process Transformation: Krones Recycling as an example for New Business Development Positive outlook for our Recycling business Recycling market characteristics1 Revenue in Mio € + 18% p.a. market growth between 2022-2030 +32% p.a. 120 100 110 ~2.8 bn € market size in 2030 80 Main g

35. Slide 35: Organizational & Process Transformation: Resilient global footprint

    Organizational & Process Transformation: Resilient global footprint Foreign vs. domestic production Additional outsourcing / supplier International Germany Indication on International 5% production footprint 1% 36% +++ 32% 18% ++ 67% 58% ++ 82% + 2019 2024e 2028e Significant increase in foreign prod

36. Slide 36: Organizational & Process Transformation: Leveraging IT landscape

    Organizational & Process Transformation: Leveraging IT landscape to push profitability PLM-IT Sales Force SAP SAP Sales Force landscape  () () ()  SAP S/4 HANA () Sales Engineering Procurement Production After Sales Conversion of IT landscape in execution; first systems fully operational at gl

37. Slide 37: Organizational & Process Transformation: Key initiative P.O.S.

    Organizational & Process Transformation: Our key initiative P.O.S.1 is on track Implications Status  Processes and working  S/4HANA in the first methods adjusted, entities operational especially in engineering and  Salesforce in Service configuration established  Support for global footprint  C

38. Slide 38: Organizational & Process Transformation: Meaningful M&A

    Organizational & Process Transformation: Meaningful M&A support our growth path M&A focus 2016 2017 2018 2019 2020 2021 2022 2023 2024 Diversification in Intralogistics Expansion of Pro- cess Technology Injection Molding New technolo- gies and markets Global Service Sales setup in Middle East, Austr

39. Slide 39: To sum it up: Our ambition 2028

    To sum it up: Our ambition 2028 Financial targets Soft targets ~7.0 bn €  Focus on sustainability and digitalization revenue  Promote innovation and customer satisfaction 11% - 13%  Continue regionalization and Global Footprint EBITDA margin  Enhance employer brand to attract and retain best tal

40. Slide 40: Deep dive: Filling and Packaging Technology

    03 Deep dive: Filling and Packaging Technology Thomas Ricker/Markus Tischer

41. Slide 41: Measures at a glance: segment Filling and Packaging Technology

    Measures at a glance: segment Filling and Packaging Technology Revenue, bn € and EBITDA, % of revenue 10.3% 0.25–0.5 pp 0.5–1.0 pp 0.5–1.0 pp 0.5–1.0 pp 12-14 % +7% p.a. ~800 >5,600 ~250 ~650 3,925 2023 Structure and Global footprint Portfolio Growth Target 2028 processes  Adaptation of  Expansion

42. Slide 42: Product and market trends driving our products

    Product and market trends driving our products PET still booming  Strong demand in emerging and growing countries  Number one packaging-type for beverages  Highly attractive product due to shape and design differentiation  Reduced CO2 footprint compared to other packaging types Healthy lifestyle

43. Slide 43: Market drivers for innovation and lifecycle services

    Market drivers for innovation and lifecycle services Sustainability  Sustainability – road to zero emission with significant CO2 savings  Water scarcity – need for less consumption and reuse of water  Rising global awareness for sustainability and the need of circular economy to reduce waste Chan

44. Slide 44: Above-average growth of PET expected to continue

    Above-average growth of PET expected to continue Global packaging, Volume Mio Pack Units1 Main arguments for positive PET development Bottle-PET Bottle-Glass Can-Metal Beverage  Improved consumer perception from “an evil material” to “a sustainable choice” 800,000 PET CAGR  Recyclable in a closed

45. Slide 45: Recap from last CMD 2022: Future requirements of a PET line

    Recap from last CMD 2022: Future requirements of a PET line Today Tomorrow Change in % 20-70 products (SKUs) >100 products (SKUs) + 100% <1h product change Ø 5h product change frequency - 80% frequency 3 operators 1 operator - 66% 50 bottles/m² (per hour) >70 bottles/m² (per hour) + 40% On-site pref

46. Slide 46: Line of the future program

    Line of the future program Customer inspiration from Results to be shown at 1st pilot in 2025 last Drinktec 2022 Drinktec 2025 Customer feed- Fundamental change in Energy PET Line back reflected and Media Consumption of the Future in our “Line of Long Term Performance the future” and TCO guarantees

47. Slide 47: Line of the Future concepts

    Line of the Future concepts Targets… … applicable to all line types Fundamental change in Energy Advanced Aseptic and Media Consumption Long Term Performance Returnable Line of the Future and TCO guarantees No operators - Supervision only Can Line of the Future Concept study Fully digitized and conn

48. Slide 48: Krones Prefero system – a next level of PET bottling

    Krones Prefero system – a next level of PET bottling Proven competitive advantage 100% rPET readiness + maximization of lightweight potential for plastic reduction Output of up to 130.000 preforms per hour 100% digital integration into the Krones Eco-System linked directly Krones Prefero system – sy

49. Slide 49: Automated Material Handling

    Automated Material Handling Proven competitive advantage Increased efficiency, enhanced safety and quality standards 50% less operators required “Managed by Krones” Automated material handling with mobile and stationary robotics Digital fleet and task management Releasing operators from material and

50. Slide 50: LitePac Top – new packaging solution

    LitePac Top – new packaging solution Proven competitive advantage Up to 40% less energy and media consumption accomplished No plastic for secondary packaging 60% less footprint achieved, as one LitePac Top system replaces up to 4 individual machines LitePac Top is a well-proven packaging solution wi

51. Slide 51: Dynafill concepts – a milestone in efficiency and microbiology

    Dynafill concepts – a milestone in efficiency and microbiology Proven competitive advantage Up to 40% less energy and media consumption reached 50% less footprint achieved Winner of the AI Excellence Award 2024 category (product or service – intelligent control) Dynafill Filling and capping in a sin

52. Slide 52: Contipure AseptBloc – where hygiene meets high-tech

    Contipure AseptBloc – where hygiene meets high-tech Proven competitive advantage Up to 25% media reduction 30% less footprint achieved Process safety secured by automated sterility monitoring Contipure AseptBloc Fastest solution in the market with Next level aseptic technology with increased output

53. Slide 53: Continuous service innovations – digitalization enables next level

    Continuous service innovations – digitalization enables next level Digital Service MSA1 Digi Products Center Operating Retrofits Supplies Service Spare Parts >1,000 100 FTE in contracts 100% new lines 7 DSC2 Full portfolio ready >300 design >3,000 service engineers >2 Mio SKUs engineers shipped p.a.

54. Slide 54: Krones digital product portfolio follows a natural evolution

    Krones digital product portfolio follows a natural evolution AI Functions Line Control Modular Service Agreements Evolution steps Digital Products Analytics Fundamentals Focus Data collection Transparency increase, Improvements in time Corrective and pre- Permanent and and preparation i.e., all rele

55. Slide 55: Line of the Future – Digital products

    Line of the Future – Digital products Advanced Analytics Line Management Track and Trace Analytics Contiloop AI Energy and Media Analytics MSA Performance Integrated Analytics Lifecycle Alliance - Maintenance Management Shopfloor Guidance Part of the plant tour Data and analytics linked with machine

56. Slide 56: Evolution of Krones LCS Portfolio

    Evolution of Krones LCS Portfolio Key results Modular Service Lifecycle LCS Products Agreements (MSAs) Alliance >1,000 MSAs Scope  Spare Parts  MSA Support  MSAs plus:  Service  Upgrades  MSA Maintenance  MSA Performance − Shopfloor Guidance − Condition Monitoring >15% CAGR fast growing (2021

57. Slide 57: Increasing LCS utilization on top of growing machine base

    Increasing LCS utilization on top of growing machine base LCS utilization1, normalized 2018 = 100 Growth drivers 120 125  Investing in global service network 113 115  Focus on Customer Journey (Krones.shop, EDI2, 106 Availability, etc.) 100 100  Higher customer loyalty through digital services 94

58. Slide 58: Levers on the TCO with combined business model

    Levers on the TCO (Total Cost of Ownership) with combined business model Traditional business model Line of the future + Lifecyle Alliance COST CHANGES Investment +20% Krones Services +80% Packaging -10% Waste -5% Energy/Utilities -25% Operator -60% TCO REDUCTION: -10% -10% TCO reduction feasible fo

59. Slide 59: Filling and Packaging Technology – Solutions beyond tomorrow

    Filling and Packaging Technology – Solutions beyond tomorrow Line of the Future solutions - market demands realized Unique portfolio and know how – enhanced competitiveness Integrated business model (CAPEX and OPEX) – securing profitable growth 59 Krones Capital Market Day 2024

60. Slide 60: Lunch break

    Lunch break

61. Slide 61: Lunch break and plant tour

    Lunch break and plant tour ~1hr ~1hr ~14:30 CET Lunch break Plant tour Continuation of with virtual our presentation broadcast 61 Krones Capital Market Day 2024

62. Slide 62: Deep dive: Process Technology

    04 Deep dive: Process Technology Bülent Bayraktar

63. Slide 63: Measures at a glance: segment Process Technology

    Measures at a glance: segment Process Technology Revenue, bn € and EBITDA, % of revenue 7.7 % 0.25-0.5 pp 0.25-0.5 pp 0.75-1.0 pp 0.5-1.0 pp 9-11 % +9% p.a. ~125 >700 ~40 ~90 453 0 2023 Structure and Global footprint Portfolio Growth Target 2028 processes  Adjustments in  Enhanced colla-  Increas

64. Slide 64: Process Technology: diversification & global setup drive growth

    Process Technology: diversification & global setup drive growth Last CMD Solutions beyond tomorrow Revenue Mix LCS Sustainable Sustainable Energy Traditional Revenue-mix diversification: (approximation) Energy Solutions Brewery  Breweries share 2018 at ~50%, Solutions New Alternative Proteins Appli

65. Slide 65: Megatrends persist and continue to shape our strategy

    Megatrends persist and continue to shape our strategy Fermentation technology Water Technology Sustainable Solutions Proteins from advanced fermentation Water treatment & water design Energy efficiency & waste minimization CAGR ~14% CAGR >6% CAGR >20% InsightAce Analytic 2023 - 2031 Precedence Resea

66. Slide 66: Global water scarcity – An opportunity for Krones PT solutions

    Global water scarcity – An opportunity for Krones PT solutions Water-efficient equipment On average, breweries use ~3 liter water per 1 liter of beer. Krones HydroCircle can reduce this to <2 liter! Safe bottled Water In many regions, drinkable tap water remains a distant goal. Hydronomic provides s

67. Slide 67: Unique water technology generates high growth

    Unique water technology generates high growth Krones Hydronomic technology  Environment friendly through hot sanitization without chemicals  Innovative control reduces waste water  Integrated solution from treatment to bottling Water Treatment Order Intake, 2017 = Index 100 700 614 600 497 500 46

68. Slide 68: Phoenix: Complete Brewnomic portfolio ready for market

    Phoenix: Complete Brewnomic portfolio ready for market Phoenix BMC1 Self-sufficient brewery Launch of Brewnomic modules 2024 Central EST Lowest possible Equitherm energy demand 2023 Pilot of a complete Brew- Energy storage Recovery of nomic concept conducted for entire brewery surplus energy 2017 20

69. Slide 69: Successful PT turnaround strategy continues

    Successful PT turnaround strategy continues PD Pumps Homogenizer Centrifugal Margin Pumps Valves increase High-viscous food Multiple Hubs Dairy products Growth focus India & USA Home & Personal Care Alternative Proteins Initial Setup (Beverage focus) Extended Geographies Additional Target Industries

70. Slide 70: Synergies in components business drive growth and profitability

    Synergies in components business drive growth and profitability US sales footprint strengthened Ampco goes global with Krones for Krones companies With 66 representations and 15 With 150 distributors across North centers, Krones opens the door to new America, Ampco provides excellent sales markets f

71. Slide 71: Unicorn Industries: The growth story of Krones PT in India

    Unicorn Industries: The growth story of Krones PT in India Strategic rationale 2025  Localization of Krones technology Planned 2021+ opening of  Participate in India’s growth 2019 Localization of 2nd factory  Leveraging Indian cost base in Acquisition of Krones PT Unicorn in product range global

72. Slide 72: Process Technology – Solutions beyond tomorrow

    Process Technology – Solutions beyond tomorrow Successful turnaround with growing profitability Increasing resilience through market diversification Growth path built on long-term megatrends 72 Krones Capital Market Day 2024

73. Slide 73: Deep dive: Intralogistics

    05 Deep dive: Intralogistics Christoph Klenk

74. Slide 74: Measures at a glance: segment Intralogistics

    Measures at a glance: segment Intralogistics Revenue, bn € and EBITDA, % of revenue 5.9 % +0.25–0.5 pp +0–0.5 pp +0.5–1.0 pp +0.5–1.0 pp 7–9 % +14% ~190 >650 ~80 ~50 343 2023 Structure and Global footprint Portfolio Growth Target 2028 processes  Efficient project  Extended US  Change to flexible

75. Slide 75: Sector split and growth drivers

    Sector split and growth drivers Indicative focus Market growth of Intralogistics 2023/281 Growth drivers across sectors Beverage High  Need for automation to ~13 % p.a.  Increase efficiency Food  Solve skilled labor shortage  Manage complexity of multi-format storages  Sustainability requiremen

76. Slide 76: Regional break-down of food and beverage logistics market

    Regional break-down of food and beverage logistics market Indicative Food and focus of beverage market Strategic focus Intralogistics growth 2023/281 Market characteristic Intralogistics  Two-digit growth for Food and Beverage High market, while overall market slows down after years of significant

77. Slide 77: Intralogistics solution portfolio covers entire value chain

    Intralogistics solution portfolio covers entire intralogistics value chain Automated Storage AGV1 and Material Picking Solutions Software & Retrieval Systems Handling Solutions Automated system to store Autonomous vehicles for Automated picking and Systore software monitors and retrieve products out

78. Slide 78: Clear customer needs addressed, solve complex logistics challenges

    Clear customer needs addressed, solve complex logistics challenges Solve increasing Enhance labor health Promote smarter Increase energy complexity and safety logistics efficiency From hundreds Up to 50% reduction Up to 20% savings Up to 40% reduction to Tens of thousands SKUs in FTEs and accident-f

79. Slide 79: Selective success story of Intralogistics: Vertique technology in US

    Selective success story of Intralogistics: Vertique technology in US Facts and figures Measures to grow The Vertique solution is ideally suited for picking  Expansion of US operations with higher volume and higher facility until throughput rate needs such as in the US Food & January 2025 to Beverag

80. Slide 80: Strengthening of service business with additional offerings

    Strengthening of service business with additional offerings Traditional Service Portfolio… Impact on service business, 2022 = 100%  Call center 24/7 helpdesk Traditional Portfolio  Training courses and maintenance skills Additional offering 2.6  Software update  Hardware update electric and mech

81. Slide 81: Innovative Automated Picking solutions drive growth and profitability

    Innovative Automated Picking solutions drive growth and profitability  Revenue growth from 60 Mio € to 180 Mio €  Expansion in Europe within next 3 years; US to follow SortMate is installed in the grocery sector, Italy PickMate is installed in LogiMate is installed the grocery sector, Italy in the

82. Slide 82: Logimate – Driving efficiency of a high-bay warehouse

    Logimate – Driving efficiency of a high-bay warehouse LogiMate is located at the center of a high-bay warehouse 82 Krones Capital Market Day 2024

83. Slide 83: LogiMate: Proven competitive advantage

    LogiMate Proven competitive advantage From high-bay warehouse to mixed-pallets shipment 40% less energy consumption due to recovery features and energy management Enhanced maximum payload of 1 x 100 Kg or 2 x 50 Kg simplifies heavy-load applications Footprint reduction due to high LogiMate storage d

84. Slide 84: Intralogistics – Solutions beyond tomorrow

    Intralogistics – Solutions beyond tomorrow Robust growth supported by high market potential and target industries differentiation Order picking solutions provide higher margins Leveraging on global footprint and superior software 84 Krones Capital Market Day 2024

85. Slide 85: Human Capital

    06 Human Capital Uta Anders

86. Slide 86: Human Capital at a glance

    Human Capital at a glance Challenges to be solved  Lack of skilled workforce; especially digital talents and service engineers  Reduced employee loyalty; driven by e.g., remote working  Increased demand for a better work-life balance  Retention of key talent Selective success stories  New emplo

87. Slide 87: New employer brand further increases the attractiveness of Krones

    New employer brand further increases the attractiveness of Krones Number of applications1, 2021-2024e Kununu Score of Krones AG2 4.02 4.03 >50% p.a. ~17,000 ~14,600 Estimate until +0.39 8,000 end of 2024 3.69 Industry ~9,200 3.63 ~4,500 average 9,000 Currently of 3.6 2021 2022 2023 2024 2021 2022 20

88. Slide 88: Krones masters the challenge to find, train and retain service engineers

    Krones masters the challenge to find, train and retain service engineers at a global level Measures taken Impact created  “Profil 21 Program”, a service-specific Service engineers, # training approach finetuned over years  Cross-Regional recruiting, e.g.: ~3% p.a.  New Trainee Program in Brazil a

89. Slide 89: Our global Krones.digital community

    Our global Krones.digital community Krones MEA We lead our customers into a digital future worldwide Global access to new digital talents 89 Krones Capital Market Day 2024

90. Slide 90: Financial Overview

    07 Financial Overview Uta Anders

91. Slide 91: Krones Group: Q1 Key Financials

    Krones Group: Q1 Key Financials -2.6% -2.0% Order Intake -2.0% to PY 1,554 1,513 1,483 Mio € +53.7% +15.3% Order Backlog +15.3% to PY 3,781 4,358 Mio € 2,460 +21.5% +4.0% Revenue +4.0% to PY 987 1,199 1,247 Mio € 2022 Q1 2023 Q1 2024 Q1 Key financials as presented on CMD 2022 - top-line outperformed

92. Slide 92: Krones Group: Q1 Key Financials

    Krones Group: Q1 Key Financials EBITDA margin +0.5 PP to PY 9.6 10.1 8.8 % of revenue 23.0 Working Capital -0.2 PP to PY 17.9 17.7 % of revenue 17.8 19.0 ROCE +1.2 PP to PY 11.7 % of revenue 2022 Q1 2023 Q1 2024 Q1 Significant increase in profitability and efficiency of Capital Employed as promised

93. Slide 93: Krones Group: Q1 Segments

    Krones Group: Q1 Segments EBITDA, Mio € Revenue, Mio € and EBITDA margin, % 1.004 1.043 103 107 Filling and Packaging 825 80 EBITDA Target Technology: 9.7% 10.3% 10.2% 2024 Profitable growth continues 10.3-10.8% 15 Process Technology: EBITDA Target Significant margin 98 110 128 7 increase 3 11.6% 20

94. Slide 94: 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 Key assumption: No further escalation of geopolitical tensions There are various unpredictable factors that could a

95. Slide 95: Mid term targets 2028

    Mid term targets 2028 Revenue, bn € EBITDA and EBT margin, % ROCE, % ~7.0 bn EBITDA EBT >20 % 4.7 bn 16.3 % 11-13 % 8-10 % 9.7 % 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 

96. Slide 96: Krones keeps its performance promises

    Krones keeps its performance promises EBITDA, % 4.0% 9.7% 11-13% of revenue CAGR, % 2.3 bn ~7.0 bn 1.4 bn 4.7 bn Revenue, 3.3 bn bn € 2020 2023 Target 2028 Achievements in Programs in each segment defined  Structure and processes  Filling and Packaging Technology  Global footprint  Process Techn

97. Slide 97: Significant spend on transformation as the base for profitable growth

    Significant spend on transformation as the base for sustainable profitable growth Annual EBITDA impact of our transformation (included in Target 2028), in pp ~1 ~0.5 ~0.3 ~0.1 ~0.1 Total Sustainability Digital Product Organisational Transformation Transformation Transformation & Process Transformati

98. Slide 98: 2028 – Revenue and EBITDA margin targets broken down by segments

    2028 – Revenue and EBITDA margin targets broken down by segments Filling and Packaging Technology Process Technology Intralogistics >5,600 Revenue, 3,925 >700 >650 Mio € 453 343 2023 2028 target 2023 2028 target 2023 2028 target EBITDA 12-14% 10.3% 9-11% margin, 7.7% 7-9% 5.9% % of revenue 2023 2028

99. Slide 99: Efficiency programs defined for targets 2028

    Efficiency programs defined for targets 2028 Revenue, bn € and EBITDA, % of revenue 9.7% 0.25-0.5 pp 0.5-1.0 pp 0.5-1.0 pp 0.5-1.0 pp 11-13% >8% p.a. ~1.1 bn ~7.0 bn ~0.8 bn 4.7 bn 0 ~0.4 bn 2023 Structure and Global footprint Portfolio Growth Target 2028 processes  P.O.S.1  Further localization C

100. Slide 100: Krones Group: Free cashflow and cash conversion rate

     Krones Group: Free cashflow and cash conversion rate Free cashflow (without M&A), Mio € Cash conversion rate (FCF/net income), in % 398 ~300 213 158 221 203 ~200 81 Negative ~70 ~80 149 net income (no CCR) 6 13 -66 -105 2018 2019 2020 2021 2022 2023 2024 2028 2018 2019 2020 2021 2022 2023 2024 2028

101. Slide 101: Group investments 2021-2028e

     Group investments 2021-2028e Investments, Mio € and Total Investment Ratio, % of revenue, 2021-2028e Total Investment Ratio Investments Tangibles Investments Intangibles 300 280 10 250 8 215 200 163 6 150 118 105 4 100 4.0% 4.0% 3.4% 2.9% 2.8% 2 50 0 0 2021 2022 2023 2024e 2028e Internationalization

102. Slide 102: Significant investments dedicated to our global footprint

     Significant investments dedicated to our global footprint  Meet high domestic demand  Capture costs advantage China  Encounter emerging competition  Prepare for potential geopolitical tensions and economic barriers Existing plant, Taicang 7 km distance New Campus India  Address strong growth of

103. Slide 103: Investor perspective

     Investor perspective Dividend pay-outs, per share in € Share price development1, in € 120,00 € 2.20 1.75 1.55 1.70 1.70 1.40 100,00 € 0.75 80,00 € 0.06 2016 2017 2018 2019 2020 2021 2022 2023 2028e Krones MDAX (indexed)  Continuous growth in dividend payments reflects  Share value increased by 38.

104. Slide 104: Krones – an attractive investment

     Krones – an attractive investment Leading position in stable and growing food and beverage market Resilient business model: complete solution provider with a strong service business and a broad global footprint Technology & innovation leader in filling and packaging with strong focus on customer nee

105. Slide 105: Q&As

     08 Q&As

106. Slide 106: Capital Market Day 2024

     Capital Market Day 2024 106 Krones Capital Market Day 2024

107. Slide 107: Thank you for your attention!

     Thank you for your attention!

108. Slide 108: Financial calendar 2024 and 2025

     Financial calendar 2024 and 2025 July 31, 2024 Conference Call Group Quarterly statement for the period from 1 January to June 30, 2024 November 5, 2024 Conference Call Group Quarterly statement for the period from 1 January to September 30, 2024 February 20, 2025 Conference Call Group Preliminary f

109. Slide 109: 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

Krones — Investor Day (July 2024) on 6ix