Krones Ag · XETR:KRN
Krones — FY2014 Earnings Presentation
27 slides from Krones's earnings presentation, Mar 19, 2015
Slide 1: Financial Year 2014 Preliminary Figures
KRONES Financial Year 2014 Preliminary Figures
Slide 2: Highlights 2014
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Slide 3: Krones reached its targets for 2014 and is optimistic for 2015
Krones reached its targets for 2014 and is optimistic for 2015 Revenue rose 4.9% in 2014 to €2.95 billion. Profitability, measured as the EBT margin, improved from 6.0% to 6.5%. Dividend for 2014 to increase over previous year’s regular dividend, from €1.00 to €1.25 per share. For 2015, Krones is ex
Slide 4: Krones achieved all targets for 2014
Krones achieved all targets for 2014 Revenue growth EBT margin ROCE Actual: 4.9 % Actual: 6.5 % Actual: 16.4 % Target: 4 % Target: 6.2 % Target: >16 % ✓ ✓ ✓ 6.5 2,953.4 6.0 2,815.7 16.7 16.4 2013 2014 2013 2014 2013 2014 in € million in % in % Page 4 | KRONES Highlights 2014 | March 19, 2015
Slide 5: Financials 2014
Highlights 2014 Financials 2014 Outlook 2015 Pah)
Slide 6: Orders received on very high level
Orders received on very high level Trend by region 3,040 +8.2 % +3.2 % 2,809 Central Europe 2,721 +8.2 % Q4 842 2,514 Q4 705 (+19%) Western Europe (–6%) Eastern Europe Q3 736 CIS/Central Asia Q3 721 (+2%) (+13%) 1,079 Q2 Middle East/Africa 999 992 723 942 Q2 698 (–4%) (+6%) China Q1 73
Slide 7: Revenue increases above-average in the Emerging Markets
Revenue increases above-average in the Emerging Markets Revenue development in € million Revenue per region in € million 2,953 +4.9 % 2,816 Share of 31.12.2014 31.12.2013 Change +5.7 % 2,664 consolidated revenue +7.4 % 2,480 Q4 789.0 In Mio. € % In Mio. € % % Q4 782.8 (+0.8%) (+2.1%) Germany 282.1 9
Slide 8: Strong increase of EBT margin based on the performance improvement program
Strong increase of EBT margin based on the performance improvement program value Personnel costs in € million 853.3 776.1 810.7 738.4 EBT in € million 29.7 191.8 29.3 29.0 29.1 13.1% 169.7 2011 2012 2013 2014 6.5 Personnel costs to total performance in % +71.2% 6.0 99.1 +32.8% Material costs in € mi
Slide 9: Krones continues to grow its workforce in Emerging Markets
Krones continues to grow its workforce in Emerging Markets Krones employee woldwide 12,624 12,285 11,963 Krones employee development in the Emerging Markets 9,344 9,076 9,098 Year South Africa Asia CIS/ China Total America East Europe 2011 406 225 198 109 258 1,196 2012 438 285 293 121 298 1,435 3,1
Slide 10: Machines and lines for product filling and decoration
Machines and lines for product filling and decoration Page 10 | KRONES Financials 2014 | March 19, 2015
Slide 11: Product filling and decoration: Improvement of profitability
Product filling and decoration: Improvement of profitability Revenue development in € million EBT development in € million Regionalization of the LCS business 2,493 2,330 2,258 +7.0 % 192.8 Cost reduction program to compensate +3.2 % cost increases 174.5 +10.5 % Expansion of modular production 120.4
Slide 12: Machines and lines for beverage production / process technology
Machines and lines for beverage production / process technology Page 12 | KRONES Financials 2014 | March 19, 2015
Slide 13: Beverage production/process technology: in line with expectations
Beverage production/process technology: in line with expectations Revenue development in € million EBT development in € million Expansion of the component business 388 (operative start of Evoguard in 2014 and 359 acquisition of HST homogenizers) 312 –7.6% 2012 2013 2014 +24.5 % Strengthening the pro
Slide 14: Machines and lines for the low output range
Machines and lines for the low output range Page 14 | KRONES Financials 2014 | March 19, 2015
Slide 15: Segment for the low output with an operative break-even
Segment for the low output with an operative break-even Revenue development in € million EBT development in € million Restructering program in the final stage. 102 Operating result is proving profitability 97 2012 2013 2014 94 +3.4 % +4.9% Strengthening product portfolio of Kosme Italy in Filling an
Slide 16: Working Capital below expectations
Working Capital below expectations Working capital* in % of revenue ROCE* in % 16.7 16.4 26.0 25.0 24.6 24.2 10.0 7.9 2011 2012 2013 2014 2011 2012 2013 2014 *LTM (Last twelve months) *LTM (Last twelve months) Page 16 | KRONES Financials 2014 | March 19, 2015
Slide 17: Free cash flow improved in 2014
Free cash flow improved in 2014 2014 2013 Earnings before taxes in € m 191.8 169.7 +/– non-cash expenses and income in € m +137.2 +126.4 +/– change in Working Capital in € m -38.9 –85.4 +/– other (mainly tax payments) in € m -41.3 –36.1 Cash flow from operating activities in € m 248.8 174.6 +/– Cape
Slide 18: Regular dividend proposal increases by 25% to 1.25 €
Regular dividend proposal increases by 25 % to 1.25 € 2.00* Net-Cash-Funds less liabilities to banks in € million Dividend per share in € 1.25** 336 1.00 240 0.75 0.60 133 125 2011 2012 2013 2014 2011 2012 2013 2014 * including a 1.00 € special dividend ** as per proposal for the appropriation of re
Slide 19: Outlook 2015
r gol, Highlights 2014 Financials 2014 Outlook 2015
Slide 20: Economic development global
Economic development global GDP Development 2013–2015 (January 2015, IWF) 3.5 3.3 3.3 2013 2014 2015 e Page 20 | KRONES Outlook 2015 | March 19, 2015
Slide 21: Economic development by region
Economic development by region GDP Development 2013–2015 (January 2015, IWF) CIS 1.3 0.6 –3.0 2013 2014 2015 e 3.6 Euro Area USA 2.4 1.2 2.2 0.8 China –0.5 7.8 7.4 6.8 2013 2014 2015 e 2013 2014 2015 e 2013 2014 2015 e North Africa/Middle East Latin America 3.3 2.8 2.8 2.2 ASEAN 5 1.3 5.2 5.2 1.2 4.
Slide 22: Development of primary packaging 2005–2018 market development
Development of primary packaging 2005–2018 market development Beverage packaging in billion units +3.6 % p.a. 1,777 Others +3.5 % p.a. 1,598 145 HDPE +3.3 % p.a. +3.4 % p.a. 1,491 129 71 +2.5 % p.a. 1,397 119 61 Carton 209 +5.4 % p.a. 1,307 108 56 1,234 181 98 51 165 90 313 1,120 48 151 Cans 82 44 1
Slide 23: Krones targets 2015
Krones targets 2015 Revenue growth EBT margin ROCE Target: +4 % Target: 6.8 % Target: 17 % Page 23 | KRONES Outlook 2015 | March 19, 2015
Slide 24: Change in Management Board in 2016
Change in Management Board in 2016 Volker Kronseder Christoph Klenk Longterm experience in the 2015 CEO CFO packaging industry in various financial functions Volker Kronseder intends Christoph Klenk CFO 2016 to join the Supervisory Board CEO Page 24 | KRONES Outlook 2015 | March 19, 2015
Slide 25: Krones
)( KRONES
Slide 26: Financial Calender 2015
Financial Calender 2015 30.04.2015 Conference Call concern 2014 und Q1 2015 30.04.2015 Annual Report 2014 30.04.2015 Interim Report as per March 31 30.04.2015 Financial Press Conference 17.06.2015 Annual General Meeting Olaf Scholz Head of Investor Relations 23.07.2015 Conference Call concern Q2 201
Slide 27: 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