Krones Ag · XETR:KRN
Krones — Investor Day (November 2021)
110 slides from Krones's investor day presentation, Nov 16, 2021
Slide 1: Capital Market Day
Capital Market Day 16 November 2021 Christoph Klenk, CEO Norbert Broger, CFO Markus Tischer, Member of the Executive Board
Slide 2: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Segment I: Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 3: Speakers
Speakers Christoph Klenk Markus Tischer Norbert Broger CEO Board member IOS CFO CEO since 2016 Member of the Board since 2014 CFO Krones since 2020 Member of the Board since 2003 28 years of Krones experience 30+ years of experience Responsibilities: Responsibilities: Responsibilities: Business Segm
Slide 4: Krones emerges stronger from recent challenges
4 ｜KRONES Capital Market Day 2021 Krones emerges stronger from recent challenges Despite fast-changing trends and dynamic competition: Krones remains #1 in beverage technologies worldwide. Despite global economic disruptions: Krones’ top line is resilient and rebounds quickly from crisis. Despite vo
Slide 5: Our strategy for shaping Krones' future
5 ｜KRONES Capital Market Day 2021 Our strategy for shaping Krones’ future → Recap of CMD November 2020 Shaping the Future Saving the Future Designing the Future → Costs and structure → Innovation and growth ▪ Adaptation of capacities ▪ Digital and remote solutions for the “New Normal” Short-term Sho
Slide 6: Welcome to Krones in the New Normal
6 ｜KRONES Capital Market Day 2021 Welcome to Krones in the New Normal → Recap of CMD November 2020 Observations in November 2020 Reassessment in November 2021 COVID-19 repercussions Travel restrictions On-trade sales Supply chain are still relevant, especially with regards to tense supply chains! Lo
Slide 7: From a global perspective, COVID-19 is not over yet
7 ｜KRONES Capital Market Day 2021 From a global perspective, COVID-19 is not over yet Percentage of population with at least one vaccine jab CC-BY ourworldindata.org | 11/11/2021 So far, about 50% of global population received at least one COVID-19 jab.
Slide 8: 2021: growth in beverage consumption despite lasting pandemic
8 ｜KRONES Capital Market Day 2021 2021: growth in beverage consumption despite lasting pandemic Consumption volume in litres Off- trade On- trade Off-trade sales remain strong, while on-trade is recovering. Projections suggest, that in 2022 beverage consumption will overtake 2019 levels. Sources: Gl
Slide 9: The beverage industry is recovering, but it won't be the same
9 ｜KRONES Capital Market Day 2021 The beverage industry is recovering, but it won’t be the same Sales channels New products and pack formats Reopening of on-trade Beer from keg to can Secure legal framework PET Driving OOH consumption while In-home drinking led to beer being The pandemic is bringing
Slide 10: Supply chain shortages jeopardize economic rebound
10 ｜KRONES Capital Market Day 2021 Supply chain shortages jeopardize economic rebound Chip shortage expected to cost auto industry $110 billion in revenue in 2021 CNBC, 14th May 2021 The World Economy’s Supply Chain Problem Keeps Getting Worse Bloomberg, 25th August 2021 Eurozone business activity s
Slide 11: Digitalization is now fundamental for every business
11 ｜KRONES Capital Market Day 2021 Digitalization is now fundamental for every business According to McKinsey, the adaptation of digital customer interaction was accelerated by 3 years globally through the COVID-19 pandemic. Krones ensured uninterrupted operations despite lockdowns by commissioning
Slide 12: Corporate consensus about urgency of climate change
12 ｜KRONES Capital Market Day 2021 Corporate consensus about urgency of climate change Decarbonization targets of publicly listed companies 939 Carbon footprint reduction 589 523 544 505 300 2015 2016 2017 2018 2019 2020 Number of MSCI ACWI constituents that had official carbon reduction targets by
Slide 13: How priorities of our customers and Krones have changed
13 ｜KRONES Capital Market Day 2021 How priorities of our customers and Krones have changed Pre-pandemic New Normal Agenda on climate change “can have” “must have” Supply chain objective just-in-time in stock Digital operating and business models desirable essential Circular packaging solutions commi
Slide 14: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 15: Krones contributes to solving three major Challenges for Humanity
15 ｜KRONES Capital Market Day 2021 Krones contributes to solving three major Challenges for Humanity Climate change Feeding the world Plastic littering Reduce CO2 in operations Reduce food waste (again) Enable recyclable packaging Energy-efficient enviro solutions Reduce process losses Provide recyc
Slide 16: Krones contributes to solving three major Challenges for Humanity
16 ｜KRONES Capital Market Day 2021 Krones contributes to solving three major Challenges for Humanity Climate change Feeding the world Plastic littering Reduce CO2 in operations Reduce food waste (again) Enable recyclable packaging Energy-efficient enviro solutions Reduce process losses Provide recyc
Slide 17: Climate Action is inevitable to avoid irreversible Damage
17 ｜KRONES Capital Market Day 2021 Climate Action is inevitable to avoid irreversible Damage CC-BY | ourworldindata.org
Slide 18: Food and beverage production accounts for >20% of all emissions
18 ｜KRONES Capital Market Day 2021 Food and beverage production accounts for >20% of all emissions CC-BY ourworldindata.org Hannah Ritchie CC-BY ourworldindata.org Hannah Ritchie Data: World Resource Institute 2021 Data: Crippa et. al. 2021
Slide 19: Customer Perspective: Coca-Cola Europacific Partners Case Study
19 ｜KRONES Capital Market Day 2021 Customer Perspective: Coca-Cola Europacific Partners Case Study
Slide 20: Customer Perspective: Coca-Cola Europacific Partners Case Study
20 ｜KRONES Capital Market Day 2021 Customer Perspective: Coca-Cola Europacific Partners Case Study
Slide 21: Krones carbon footprint targets reflect our customers' ambitions
21 ｜KRONES Capital Market Day 2021 Krones carbon footprint targets reflect our customers’ ambitions -80% Scope 1 | <1% direct emissions from operations until 2030 (e.g., ICE powered company vehicles, gas use in production) Krones 2021 -80% Scope 2 | <1% emissions from procured energy emissions until
Slide 22: CO2 footprint breakdown by beverage category
22 ｜KRONES Capital Market Day 2021 CO2 footprint breakdown by beverage category Water (1) CSD (2) Brewery (3) Dairy (4) 3% 16% 3% 13% 72% 7% 9% 24% 11% 25% 11% 15% 5% 52% 7% 43% 6% 37% 17% Ingredients/Agriculture Production process Packaging Logistics Cooling Others Ingredients Energy and media Pack
Slide 23: Energy self-sufficient brewing: Steinecker Brewnomic targets zero carbon
23 ｜KRONES Capital Market Day 2021 Energy self-sufficient brewing: Steinecker Brewnomic targets zero carbon Energy Brewery storage tank Spent grains Yeast Malt dust Waste water Protein base Boiler g Biomass 20% biogas plant Fertiliser conversion* g Solar Process water 80% biogas Utilities CHP Heat E
Slide 24: Krones contributes to solving three major Challenges for Humanity
24 ｜KRONES Capital Market Day 2021 Krones contributes to solving three major Challenges for Humanity Climate change Feeding the world Plastic littering Reduce CO2 in operations Reduce food waste (again) Enable recyclable packaging Energy-efficient enviro solutions Reduce process losses Provide recyc
Slide 25: One third of all food is wasted globally
25 ｜KRONES Capital Market Day 2021 One third of all food is wasted globally Global average food waste per 6.7% of global GHG-emissions Preventable excess use of capita and day: 527 calories1 are attributable to food waste water, soil, fertilizer and energy 527 calories represent ~25% of the 6.7% rep
Slide 26: More animals are being fed than humans – can we afford this?
26 ｜KRONES Capital Market Day 2021 More animals are being fed than humans – can we afford this? Weighting all mammals on earth < 5% All wild 60% mammals combined Livestock 35% Humans Counting the planet 1.5 bn cattle 1 bn sheep 1 bn pigs 7.7 bn people 19 bn chicken Animal husbandry has shaped our pl
Slide 27: Case study alternative proteins: oat yogurt for Russian market
27 ｜KRONES Capital Market Day 2021 Case study alternative proteins: oat yogurt for Russian market Sady Predonia Nemoloko Oat Yogurt Spoonable, dairy-free yogurt products in several flavors with consistent taste and mouthfeel Our solution: a turnkey processing line by Initial Preparation Controlled O
Slide 28: Krones contributes to solving three major Challenges for Humanity
28 ｜KRONES Capital Market Day 2021 Krones contributes to solving three major Challenges for Humanity Climate change Feeding the world Plastic littering Reduce CO2 in operations Reduce food waste (again) Enable recyclable packaging Energy-efficient enviro solutions Reduce process losses Provide recyc
Slide 29: Why global action on unmanaged plastic littering is essential
29 ｜KRONES Capital Market Day 2021 Why global action on unmanaged plastic littering is essential 8 million tons of plastic waste end up unmanaged as marine litter every year1 That’s about 1 kg for every person worldwide! Our customers and Krones understand the challenge and are working hard to solve
Slide 30: Krones enables true Bottle-to-Bottle Circular Packaging
30 ｜KRONES Capital Market Day 2021 Krones enables true Bottle-to-Bottle Circular Packaging Blow molding Primary Recycling packaging Krones is the only company with full bottle-to-bottle Reverse Secondary logistics packaging scope of solutions! Point of sales Warehouse
Slide 31: Video Clip rPlanet Earth
31 ｜KRONES Capital Market Day 2021 Video Clip rPlanet Earth
Slide 32: Krones One-Stop-Shop Solution for Plastic Recycling Plants
32 ｜KRONES Capital Market Day 2021 Krones One-Stop-Shop Solution for Plastic Recycling Plants Project management Factory planning Recycling expertise Front-end Washing module Decontamination Utilities integration MetaPure W-PET MetaPure S integration Krones provides food-grade PET recycling solution
Slide 33: What if we recycled every PET bottle leaving our new lines …?
33 ｜KRONES Capital Market Day 2021 What if we recycled every PET bottle leaving our new lines …? % of bottle-to-bottle closed 9% ~10% (f) >15% (f) >18% (f) loop recovery with Krones 223.300 recycling solutions 180.000 150.000 90.000 56.700 Approx. rPET volume from newly commissioned KRONES recycling
Slide 34: Sustainability @ Krones
34 ｜KRONES Capital Market Day 2021 Sustainability @ Krones Our commitment at a glance
Slide 35: Krones' goals for sustainable development through 2030
35 ｜KRONES Capital Market Day 2021 Krones’ goals for sustainable development through 2030 Ethics Market Society ▪Pursue a zero-tolerance policy with ▪Bring our products’ energy andmedia ▪Give 0.01% to 0.02% of our prior-year respect to compliance and human rights consumption to the lowest possible r
Slide 36: Krones Commitments to society and stakeholders
36 ｜KRONES Capital Market Day 2021 Krones Commitments to society and stakeholders UN sustainable development goals committed to UN Global Compact since 2012 committed to binding targets in 2020 committed to race to zero in 2021 European Circular Economy Stakeholder Platform committed to take action
Slide 37: Acknowledgement and certification of our sustainability efforts
37 ｜KRONES Capital Market Day 2021 Acknowledgement and certification of our sustainability efforts Customers Investors Public Importance Importance Importance Depth of information Depth of information Depth of information One of 983 companies worldwide with officially validated Science Based Targets
Slide 38: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 39: Video Clip Digitalization
39 ｜KRONES Capital Market Day 2021 Video Clip Digitalization
Slide 40: Landscape of applicable Technologies is evolving constantly
40 ｜KRONES Capital Market Day 2021 Landscape of applicable Technologies is evolving constantly 2025 + 2015 – 2025 2000 – 2015 1980 – 2000 Predictive Predictive analytics Inspection analytics MES Inspection MES Inspection MES technology Robotics Inspection MES . technology technology Robotics technol
Slide 41: Krones is making it simple: All digital customer services in one platform
41 ｜KRONES Capital Market Day 2021 Krones is making it simple: All digital customer services along the supply chain in one platform Personalized Efficient transactions Cloud Services Digital Service Center Krones.shop Performance Remote Parts Assistance Service Level Agreements (SLAs) Content Watchd
Slide 42: Welcome to the Krones.world
42 ｜KRONES Capital Market Day 2021 Welcome to the Access with Krones ID The entire Krones Ecosystem in one platform Bundling all existing Digital Services for customers Krones IIoT system Share2Act inside Krones.shop inside Krones customer support inside Continuously growing
Slide 43: Data Access is the key to leverage the benefits
43 ｜KRONES Capital Market Day 2021 Data Access is the key to leverage the benefits of ▪ All Krones lines equipped with edge device ReadyKit Krones Digital Service Center Customer cloud ▪ Connection to customer cloud and ERP systems ▪ Full range of services available if connected with Krones Cloud da
Slide 44: Krones IIoT system: Share2Act
44 ｜KRONES Capital Market Day 2021 Krones IIoT system: Share2Act More than 50 running IIOT Subscriptions today and growing every day
Slide 45: Task Service – real time operator guidance
45 ｜KRONES Capital Market Day 2021 Task Service at – real time operator guidance Recognition of Assign operator operator-relevant Filtering the Providing SOPs Prioritizing tasks task interventions relevant tasks Machinery faults Supply or waist container Tasks-Service Fallen bottles Provide the oper
Slide 46: The leading online shop in the industry
46 ｜KRONES Capital Market Day 2021 – the leading online shop in the industry! ▪ Products: more than 6m products ▪ RPOD service: download 3D print spare parts ▪ New machine configurator ▪ Lifecycle Services: upgrades, warehouse packages, trainings, videos, etc. ▪ User: > 25,000 registered customers ▪
Slide 47: Krones build up essential digital competencies early on
47 ｜KRONES Capital Market Day 2021 Krones build up essential digital competencies early on ▪ More than 2,000 experts in digitalization and automation globally ▪ Worldwide competence center ▪ Own SAP partner company for food industry: Triacos ▪ Main shareholder in AI company: Tiki ▪ Krones digital st
Slide 48: How our digital business models drive top- and bottom-line growth
48 ｜KRONES Capital Market Day 2021 How our digital business models drive top- and bottom-line growth Legacy business model Digital business model New machine + parts and services New machine + SLAs + digital services Growth constrained by Growth based on Growth and scalability manufacturing capacity
Slide 49: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 50: Measures at a glance: segment filling and decoration
50 ｜KRONES Capital Market Day 2021 Measures at a glance: segment filling and decoration Programs to improve growth and efficiency 2021 expectation Program Structure and Global footprint Portfolio Growth process Revenue ~ € 3.0 bn ▪ Product cost ▪ Expand ▪ Reshape product ▪ Market growth, reduction p
Slide 51: What our customers expect from Krones solutions: value drivers
51 ｜KRONES Capital Market Day 2021 What our customers expect from Krones solutions: value drivers Safe and secure Affordable Flexible Environmentally friendly Product safety Maximum OEE Maximum number of SKUs Sustainable packaging Product quality Smart systems Future adaptability of equipment Zero-w
Slide 52: Solutions highlights industries
52 ｜KRONES Capital Market Day 2021 What our customers expect from Krones solutions: value drivers Safe and secure Affordable Flexible Environmentally friendly PET lines Glass lines Can lines Aseptic lines Water CSD CSD Beer CSD Beer Sensitives Dairy industries Focus highlights Solutions High-speed P
Slide 53: Why Krones is addressing all three major beverage container types
53 ｜KRONES Capital Market Day 2021 Why Krones is addressing all three major beverage container types PET/HDPE and rPET bottle ▪ Excellent weight-to-product ratio ▪ Aseptic filling capability ▪ Flexible and cost-efficient production ▪ Outstanding recyclability/low energy loss ▪ But: plastic waste and
Slide 54: Best-in-class TCO: high-speed PET bottling line
54 ｜KRONES Capital Market Day 2021 Best-in-class TCO: high-speed PET bottling line PET/HDPE and rPET Output Highest output in the market for still water PET lines with a potential of 100,000 bph! Savings Highest effectiveness and efficiency in the market for the complete ErgoBloc L line including co
Slide 55: Smart system for glass bottle inspection: Linatronic AI
55 ｜KRONES Capital Market Day 2021 Smart system for glass bottle inspection: Linatronic AI Glass bottle Artificial intelligence technology Empty-container inspector with deep learning technology for improved hazard recognition One for all Suitable for glass and PET containers Advantages over convent
Slide 56: More sustainable secondary packaging for beverage cans
56 ｜KRONES Capital Market Day 2021 More sustainable secondary packaging for beverage cans Beverage can Savings Strapping vs. shrink packs: ▪ Up to 75% less material ▪ Up to 90% less energy consumption (production) Stability Comparable to shrink packaging commonly used today Recycling Cardboard and p
Slide 57: Best hygiene & TCO with 2022 Contipure AseptBloc DN
57 ｜KRONES Capital Market Day 2021 Best hygiene & TCO with 2022 Contipure AseptBloc DN Aseptic PET/rPET Flexibility Ready for autonomous bottle type changeover via MouldXpress robot Industry leading speed New Contiform Asept Speed blow-moulding Estimated cost profile machine allows speed of up to 72
Slide 58: What our customers expect from Krones services: value drivers
58 ｜KRONES Capital Market Day 2021 What our customers expect from Krones services: value drivers Safe and secure Affordable Flexible Environmentally friendly Upgrades Digitalization Maintenance Services Impact → Investment Present LCS business Potential LCS business (Schematic illustration) (Schemat
Slide 59: Krones drives the transformation of the service business model
59 ｜KRONES Capital Market Day 2021 Krones drives the transformation of the service business model… Changes Machine Spare parts, Operations Total asset and plant retrofits Service suppliers ▪ Change of market access suppliers suppliers manager manager “Sales > serviceˮ ▪ Change of technology know-how
Slide 60: From "built by Krones" to "managed by Krones"
60 ｜KRONES Capital Market Day 2021 …from “built by Krones” to “managed by Krones” Managed by Krones “Performance commitments Supported by Krones“ by Krones “Additional Additional support and support by performance commitments Built Krones“ for Krones customers in the by Krones Krones Ecosystem “Purc
Slide 61: Managed by Krones – realized by Service Level Agreements
61 ｜KRONES Capital Market Day 2021 Managed by Krones – realized by Service Level Agreements Example SLA Commitment SLA Performance Maintenance Contract Consultancy service SLA Performance Support Contract Digital Services Advantages ▪ Modular contracts – depending on the customer demand (OEE, OPEX,
Slide 62: Taking advantage of the best service network in the industry
62 ｜KRONES Capital Market Day 2021 Taking advantage of the best service network in the industry Over the last decades Krones invested heavily in the global service network. + Digitalization is complementing the local service competence with the global Krones domain expertise. = In combination of bot
Slide 63: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 64: Measures at a glance: segment process technology
64 ｜KRONES Capital Market Day 2021 Measures at a glance: segment process technology Programs to improve growth and efficiency 2021 expectation Program Structure and Global footprint Portfolio Growth process Revenue ~ €300m ▪ Bottom line ▪ Increase ▪ Increased focus ▪ Market growth synergies across c
Slide 65: PT Journey from monolithic Business Unit to Solutions Network
65 ｜KRONES Capital Market Day 2021 PT Journey from monolithic Business Unit to Solutions Network Yesterday Today Tomorrow 2016 2021 2024 80% of revenue within ~20% of revenue within ~20% of revenue within Krones AG Krones AG Krones AG 90% of FTE within ~10% of FTE within ~10% of FTE within Krones AG
Slide 66: How process technology is driving Krones' future growth and resilience
66 ｜KRONES Capital Market Day 2021 How process technology is driving Krones’ future growth and resilience #1: process technology is #2: water technologies are #3: alternative proteins packaging-agnostic key for the 21st century need process knowledge Regardless if or which beverage Climate change is
Slide 67: How Krones process technology is generating value for customers every day
67 ｜KRONES Capital Market Day 2021 How Krones process technology is generating value for customers every day ShakesBeer Hydronomic HST VarioSpin Mash tun Water treatment Homogenizers Deaerator Value Generation for ... efficient use of ... providing safe and … defining sensory … preservation and Cust
Slide 68: Case study alternative proteins: oat yogurt for Russian market
68 ｜KRONES Capital Market Day 2021 Case study alternative proteins: oat yogurt for Russian market Sady Predonia Nemoloko Oat Yogurt Spoonable, dairy-free yogurt products in several flavors with consistent taste and mouthfeel Our solution: a turnkey processing line by Initial Preparation Controlled O
Slide 69: Energy self-sufficient brewing: Steinecker Brewnomic targets zero carbon
69 ｜KRONES Capital Market Day 2021 Energy self-sufficient brewing: Steinecker Brewnomic targets zero carbon Energy Brewery storage tank Spent grains Yeast Malt dust Waste water Protein base Boiler g Biomass 20% biogas plant Fertiliser conversion* g Solar Process water 80% biogas Utilities CHP Heat E
Slide 70: Steinecker Brewnomic is designed as a modular and scalable set of solutions
70 ｜KRONES Capital Market Day 2021 Steinecker Brewnomic is designed as a modular and scalable set of solutions High-gravity Wort boiling system Continuous brewing process Steinecker Stromboli batch process Innovative Low-temperature Steinecker EquiTherm energy storage unit brewery Krones Dynafill Kr
Slide 71: Outlook: unified process and filling technology solutions in Krones AG
71 ｜KRONES Capital Market Day 2021 Outlook: unified process and filling technology solutions in Krones AG Established standard Intermediate Future solutions solutions Beverage processing Unified automation and HMI Integrated beverage processing and filling Currently featured in Kosme equipment ▪ Bet
Slide 72: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 73: Video clip System Logistics
73 ｜KRONES Capital Market Day 2021 Video clip System Logistics
Slide 74: Measures at a glance: business unit intralogistics
74 ｜KRONES Capital Market Day 2021 Measures at a glance: business unit intralogistics Programs to improve growth and efficiency 2021 expectation Program Structure and Global footprint Portfolio Growth process Revenue €300m ▪ Improve project ▪ Leverage ▪ Mix change to ▪ Dynamic market execution Mexic
Slide 75: Intralogistics addressable global market potentials
75 ｜KRONES Capital Market Day 2021 Intralogistics addressable global market potentials – definition of the relevant markets for System Logistics USD 20 bn USD 5 bn 30% of total 70% of total USD 9 bn USD 15 bn USD 3,5 bn Todays IL market focus: USD 7 bn Food and beverage producers USD 4 bn and distri
Slide 76: A wide range of intralogistics in-house technologies
76 ｜KRONES Capital Market Day 2021 A wide range of intralogistics in-house technologies 500+ installed 1,600+ installed 100+ installed Automated material AGV – automated Picking solutions handling solutions guided vehicles 12 – 24 months 6 – 12 months 6 – 24 months Typical project duration
Slide 77: Our Focus
77 ｜KRONES Capital Market Day 2021 OUR FOCUS Food Beverage Cold and frozen Grocery
Slide 78: Solutions and technologies
78 ｜KRONES Capital Market Day 2021 Solutions and technologies Automated Case Material storage and picking handling buffering systems ▪ Stacker cranes ▪ Miniloads ▪ Monorails ▪ Miniloads ▪ Shuttles ▪ AGV ▪ Case and totes ▪ AGV ▪ Pallet/case conveyors ▪ Pallet shuttles ▪ Robots ▪ Material handling ▪ C
Slide 79: System Logistics – preferred supplier of the food and beverage industry
79 ｜KRONES Capital Market Day 2021 System Logistics – preferred supplier of the food and beverage industry Key technologies in-house know how Technologies used in our solutions are mainly designed, engineered, manufactured and installed by System Logistics WE ARE MORE THAN AN Solutions provider ENGI
Slide 80: System Logistics worldwide network
80 ｜KRONES Capital Market Day 2021 System Logistic worldwide network Headquarters Branch with production European branches Asian branch System Logistics Spa System Logistics Corporation System Logistics GmbH: System Logistics Asia: Asia, Pacific and Middle East Italy United States and Canada DACH, N
Slide 81: Drivers for speed, growth and profitability
81 ｜KRONES Capital Market Day 2021 Drivers for speed, growth and profitability Standardized Leveraging on Internal pre-sales order fulfillment Krones network process: engineering, solutions for Leveraging on local data analysis, picking solutions project management simulations
Slide 82: Consulting and engineering
82 ｜KRONES Capital Market Day 2021 Consulting and engineering Intralogistics solutions WMS Systore is fully designed and developed Designed, engineered, fabricated and internally by System Logistics. installed entirely by System Logistics The single product ensures the complete control of the techno
Slide 83: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New financial targets 2025 ▪ Discussion/Q&As
Slide 84: Krones highlights Q1 – Q3 2021
84 ｜KRONES Capital Market Day 2021 Krones highlights Q1 – Q3 2021 Order intake Revenue EBITDA margin Free cash flow +38.8% +7.9% 8.0% +€108m €3.19bn €2.6bn (PY 6.0%) (PY €-58m)
Slide 85: Order intake and orders on hand (€m)
85 ｜KRONES Capital Market Day 2021 Order intake and orders on hand (€m) Sustainable growth in 4,084 Order intake 3rd quarter 2021 +3.2% Orders on hand 1,126 ▪ Compared to Q3 2020, Q4 3,307 3,193 order intake in Q3 2021 had -19.0% +38.8% an increase of 36.1%. Highest 1,006 order intake in a 3rd quart
Slide 86: Revenue development by quarter (€m)
86 ｜KRONES Capital Market Day 2021 Revenue development by quarter (€m) 3,959 Revenue growth at Krones +2.7% accelerated in 3rd quarter 1,069 3,323 2021 -16.1% Q4 ▪ Revenue was increased in 874 2,643 Q3 2021 by 23%, compared to +7.9% prior year 1,000 Q3 923 ▪ Revenue in Q3 higher than 750 previous qu
Slide 87: EBITDA and EBITDA margin by quarter
87 ｜KRONES Capital Market Day 2021 EBITDA and EBITDA margin by quarter (€m and %) 227.3 EBITDA margin at 8.0% -25.7% EBITDA (€m) 212.6 63.0 EBITDA margin in % (YTD September) +44.3% ▪ Significantly improved 74.9 profitability impacted by structural measures and strong market development Q4 133.2 47.
Slide 88: Krones employees worldwide – capacity adjustment program completed
88 ｜KRONES Capital Market Day 2021 Krones employees worldwide – capacity adjustment program successfully completed Total Germany RoW 17,353 16,736 16,180 10,733 10,364 9,803 6,620 6,372 6,377 31.12.2019 31.12.2020 30.09.2021
Slide 89: Review Capital Market Day November 12, 2020
89 ｜KRONES Capital Market Day 2021 Review Capital Market Day November 12, 2020 2020 Programs to improve efficiencies – actual status 2023 Program Structure and Global footprint Portfolio Growth Process ▪ Adjust capacities ✓ ▪ Plant Hungary (✓) ▪ Reshape product ▪ Pricing (✓) ▪ Product cost ▪ Plant C
Slide 90: Sales and EBITDA margin improving faster than expected
90 ｜KRONES Capital Market Day 2021 Sales and EBITDA margin improving faster than expected Recap Capital Market Day Sales (in €m) and EBITDA* margin (in %) November 2020 Base Case Base Case Base Case 2021 2022 2023 3,854 3,959 Sales in €m 3.3 - 3.4 3.5 - 3.6 3.7 - 4.0 3,691 ~3,600 EBITDA in % 6.5 - 7
Slide 91: Cashflow and cash conversion rate
91 ｜KRONES Capital Market Day 2021 Cashflow and cash conversion rate Free cashflow (without M&A) in €m 221 Free cashflow and cash conversion 149 89 108 rate significantly improving 83 ▪ Stronger internal focus on free cashflow -66 ▪ Higher discipline in investments -118 2015 2016 2017 2018 2019 2020
Slide 92: Working capital
92 ｜KRONES Capital Market Day 2021 Working capital Net working capital remains Working capital in €m and in % of revenue (average of 4 quarters) a challenge due to specific payment terms in the industry and global supply 997 1,020 chain challenges 818 855 848 ▪ Actual working capital on 809 pre-Covi
Slide 93: ROCE
93 ｜KRONES Capital Market Day 2021 ROCE ▪ Stable development ROCE 2015 – 2021* in % of return on capital employed (ROCE) before 15.8 2019, influenced by 15.0 14.9 increased earnings vs. growing capital employed 13.3 ▪ Strong increase in earnings and a moderate reduction 8-9 in capital employed resul
Slide 94: Krones financial stability leaves room for investment decisions
94 ｜KRONES Capital Market Day 2021 Krones financial stability Equity (€m) and equity ratio (in %) 1,433 1,370 1,330 Liquidity reserves Q1 – Q3 2021 > €1.3bn 1,226 1,200 1,303 1,111 Used credit lines €5m 43.8 43.2 41.0 41.3 Cash 39.9 39.4 38.3 €289m Total 2015 2016 2017 2018 2019 2020 2021 Q3 €1,331m
Slide 95: Investor perspective
95 ｜KRONES Capital Market Day 2021 Investor perspective Dividend payouts in € 1.00* Dividend payouts: 1.70 1.70 1.55 1.45 ▪ Continuous growth in dividend 1.25 payments until 2019 reflecting the 1.00 profitable growth path of Krones 0.75 0.75 0.60 0.40 Our dividend policy: 0.06 2010 2011 2012 2013 20
Slide 96: Investor perspective
96 ｜KRONES Capital Market Day 2021 Investor perspective Share price development since CMD CMD last CMD 11/2020 11/2021 ▪ Share price development of Krones over the last 12 months above SDAX development ▪ Despite the market corrections within the last 12 months, Krones share price increased by 73%; S
Slide 97: We confirm our midterm targets
97 ｜KRONES Capital Market Day 2021 We confirm our midterm targets Our current midterm targets Growth EBITDA margin Working capital 2% – 5% 9% – 12% 24% – 26% (organic growth) to be achieved in 2023 (… most likely one year earlier)
Slide 98: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New Financial Targets 2025 ▪ Discussion/Q&As
Slide 99: Financial targets for 2025
99 ｜KRONES Capital Market Day 2021 Financial targets for 2025 We have set ourselves challenging Sales (€m) EBITDA margin (%) ROCE (%) but realistic financial targets for 2025: ▪ Sales ≥ €5bn, including minimum €4.5bn due to organic growth 10 – 13 >20 ≥ 5,000 ▪ EBITDA 10% ‒ 13% ▪ ROCE ≥ 20% ~3,600 7–
Slide 100: Sales targets 2025 by segments
100｜KRONES Capital Market Day 2021 Sales targets 2025 by segments >5,000 M&A Growth: Sales (€m) and segment share (in%) 9 ▪ 2.5% Global Beverage Market 3,959 9 ▪ + Sustainability centered solutions 6.1 ~3,600 11.4 3,326 7 82 ▪ + Digital and service solutions 82.5 6.4 10 ▪ + Increased packaging scope
Slide 101: Profitable growth path will continue
101｜KRONES Capital Market Day 2021 Profitable growth path will continue >5,000 M&A 3,854 3,959 3,691 ~3,600 3,391 3,323 3,174 13 EBITDA* margin (in %) 10 9.6 9.5 9.2 8.7 ~8 6.6 6.2 Sales (in €m) 2015 2016 2017 2018 2019 2020 2021e 2025 target * EBITDA margin before one-offs
Slide 102: EBITDA targets 2025 by segments
102｜KRONES Capital Market Day 2021 EBITDA* targets 2025 by segments Product Filling and Decoration: EBITDA (in %) Actual ~9% to target 12 – 14% 12-14 ▪ Increase global production footprint ▪ Reshape product portfolio 10-13 ▪ Innovation in sustainable filling & packaging ~9 ▪ Digital products and ser
Slide 103: We will keep our focus on cash
103｜KRONES Capital Market Day 2021 We will keep our focus on cash Free Cashflow (without M&A) in €m 221 149 ▪ With increasing earnings and 108 €150 – 250m strong improvement in ROCE 83 89 sustainable positive development in Free Cashflow planned -66 ▪ Higher Free Cashflow can be -118 Q3 used for int
Slide 104: Krones – an attractive investment
104｜KRONES Capital Market Day 2021 Krones – an attractive investment Leading position in attractive and growing beverage and food market Digitalization, technology & innovation leader in filling and packaging Strong ESG commitment & sustainability enabler for global industry players Clear growth pat
Slide 105: Agenda
Agenda ▪ Welcome ▪ Sustainability @ Krones ▪ Digitalization @ Krones ▪ Business Unit Filling and Decoration ▪ Segment II: Process Technology ▪ Segment II: Intralogistics ▪ Financials ▪ New Financial Targets 2025 ▪ Discussion/Q&As
Slide 106: Organizational Notes on Q&A Session
106｜KRONES Capital Market Day 2021 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 107: Q&A Session
107｜KRONES Capital Market Day 2021 Q&A Session
Slide 108: Thank you for your attention!
Thank you for your attention!
Slide 109: Financial calendar 2022
109｜KRONES Capital Market Day 2021 Financial calendar 2022 February 24, 2022 Conference Call Group Preliminary figures for the period from 1 January to December 31, 2021 May 6, 2022 Conference Call Group Quarterly statement for the period Olaf Scholz from 1 January to March 31, 2022 Head of Investor
Slide 110: Disclaimer
110｜KRONES Capital Market Day 2021 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-lo