Krones Ag · XETR:KRN
Krones — Q1 2023 Earnings Presentation
32 slides from Krones's earnings presentation, May 5, 2023
Slide 1: Krones Q1 2023 Conference Call
Krones Q1 2023 Conference Call May 05, 2023 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones starts with a very strong first quarter in 2023
Krones starts with a very strong first quarter in the year 2023. All key factors are in expected ranges to reach the 2023 guidance Order intake in first quarter Revenue growth in first In Q1 impacts of price Despite various global 2023 still on a very high level quarter 2023 by 21.4% yoy to increase
Slide 3: Krones highlights Q1
Krones highlights Q1 +€1,51 billion +21.4% 9.6% -€21 million Order intake Revenue EBITDA margin Free cash flow (PY +€1,55 billion) €1,199 million (PY 8.8%) (PY +€77 million) 3 Krones Conference Call May 05, 2023
Slide 4: Order intake and orders on hand (€ million)
Order intake and orders on hand (€ million) Market demand still very high. Strong Order intake order intake in Q1 2023 and orders on Orders on hand 5,783 hand on all time high +34.0% − In first 3 months 2023 the order intake 1,183 was with €1.51 billion slightly below 4,316 (-2.6%) the very strong a
Slide 5: Customer expectations our top priority – Product Overview
Customer expectations our top priority – Product Overview Bottling and Packaging Process Technology Line type Global Position − Aseptic solutions: PET lines gaining market share 1 − Energy saving solutions: Pipeline growing Glass lines 1 − Components: Pump business acquired (Ampco) Can lines 1 Intra
Slide 6: 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 7: Steering sustainability transformation and performance
Steering sustainability transformation and performance Solutions Challenges ESG Climate Plastic Feeding the performance Change Littering World Sustainable Value Chain Energy and Media Circular Economy Sustainable Food − Pursuing a Net Zero − Future Line concepts with − Strengthen Recycling − Focusin
Slide 8: Focus on carbon emissions (Scope 1+2)
Focus on carbon emissions (Scope 1+2) Continue reducing our on-site emissions according to our climate target 100% − Positive development despite recent acquisition − Already significantly below target line (10% delta to plan) FC: 25,943 − Future reductions will become increasingly difficult t CO2e
Slide 9: External recognition for Sustainability Performance
External recognition for Sustainability Performance Krones has recently been listed as “Europe’s Climate Leaders 2023” For the third time, Financial Times and Statista have evaluated the climate strategies and carbon reduction performance of companies in Europe. Krones is one of 500 companies identi
Slide 10: Revenue per region reflects a strong growth in 1st quarter
Revenue per region reflects a strong growth in1st quarter in North and South America and in APAC; all in all the revenue split remains well balanced Eastern Europe/ Russia/Central Asia Share of sales (Q1) 2021 2022 2023 North and Europe 7.3% 6.3% 5.5% Central America 2021 2022 2023 2021 2022 2023 33
Slide 11: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) 4,209 Strong sales growth in Q1 2023 +15.8% (+21.4%) above the target for full year 3,634 1,165 8%–11% +9.4% − Revenue in Q1 2023 with €1,199 million is 991 the highest revenue achieved in a quarter Q4 − Revenue in Q1 2023 was increased by 21.4% compared to
Slide 12: EBITDA and EBITDA margin strongly improved
EBITDA and EBITDA margin strongly improved (€ million and %) 373.3 +19.4% 103.2 EBITDA at €115 million (+32%) and a 312.6 EBITDA (€ million) EBITDA margin at 9.6% +134.7% EBITDA margin in % − As a result of performance 100.0 optimizations EBITDA increased by 32.1% so more than revenue Q4 95.0 increa
Slide 13: EBT and EBT margin by quarter (€ million and %)
EBT and EBT margin by quarter (€ million and %) EBT at €83 million(+52%) and EBT margin strongly increased to 6.9% 242.1 58.9 +36.5% 65.5 − EBT also increased very strong with 65.5 51.7% in Q1 2023 and with a margin of 6.9%, which is far above prior year 63.4 (Q1 2022: 5.5%) 177.3 − EBT also influen
Slide 14: Personnel and material expenses Q1 (€ million and %)
Personnel and material expenses Q1 (€ million and %) − Personnel cost ratio with 29.7% clearly Personnel cost Q1 (€ million) Material cost Q1 (€ million) better than last year (31.6%) but on the level of full year 2022 (29.8%). Positive 589 effects from the fully implemented structural measures were
Slide 15: Krones employees worldwide
Krones employees worldwide – slight growth in Germany (mainly at KAG) in Q1 2023 after prior years capacity adjustment programs and a further growth in the rest of the world Total Germany RoW Thereof KAG 17,164 17,500 16,303 9,821 10,130 10,217 8,375 6,482 8,608 7,034 8,682 7,283 31.12.2021 31.12.20
Slide 16: Revenue and EBITDA per segment – Filling and Packaging Technology
Revenue and EBITDA per segment Filling and Packaging Technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 − Increase in revenue (+21.7%) are nearly at group level and also above the target for 2023 (7% to 9%). Revenue growth is 1,004 driven primarily by n
Slide 17: Revenue and EBITDA per segment – Process Technology
Revenue and EBITDA per segment Process Technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 − Revenues increased vs. prior year by 12% and regarding seasonal effects fully inline with the 110 guidance revenue growth in 2022 98 (15% to 20%) 84 − EBITDA mar
Slide 18: Revenue and EBITDA per segment – Intralogistics
Revenue and EBITDA per segment Intralogistics Revenue development Q1 Segment EBITDA (€ million) and − Revenues in the intralogistics (€ million) EBITDA margin (%) Q1 segment are influenced by seasonal effects. The growth in Q1 2023 of 33,3% yoy, results mainly from a 85 base effect. Segment revenues
Slide 19: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments − Strong cash position of Liquidity reserves Equity (€ million) and equity ratio (in %) €645 million and also free Q1 2023 ~ €1.5bn 1,658 credit lines of approx. €870 million reflect
Slide 20: Working Capital Q1 (in %)
Working Capital Q1 (in %) Further strong decrease in Working Working Capital of revenue Q1 Part of Working Capital in % Capital with 17.9% vs. 23.0% Q1 2022 (%, average over four quarters) of revenue (last 12 months) − As a result of higher business activities (revenues +21.4%), receivables increase
Slide 21: Free cash flow Q1
Free cash flow Q1 Cash flows of Q1 2023 must be seen in (€ million) 2023 2022 relation of extraordinary strong 2022 Earnings before taxes (EBT) 83.0 54.7 − Operating activities with €14 million in Q1 2023 (vs. €101 million Q1 prior year) +/– Other non-cash changes +88.7 +95.9 were influenced by stro
Slide 22: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of Q1 2023 and FY 2022 must be considered together − Free cash flow in 2023 is influenced by a 398 rising Working Capital based on stronger operative activities − Based on a negative Free cash flow, als
Slide 23: ROCE
ROCE − ROCE, as the third target figure, is with ROCE Q1 2021 – 2023* in % 17.8% slightly better than expectations for FY 2023 (15% to 17%) and also better than 14.1% of full year 2022 17.8 − The positive development of the last years mainly based on higher earnings − This earnings increases will co
Slide 24: Outlook 2023
Outlook 2023 24 Krones Conference Call May 05, 2023
Slide 25: Krones Outlook 2023 – a strong confirmation in still challenging times
Krones Outlook 2023 – a strong confirmation in still challenging times Kernaussage 8% – 11% 9% – 10% 15% – 17% Revenue growth EBITDA margin ROCE Key assumptions: 1. No further escalation of Russia-Ukraine conflict 2. No geopolitical escalations, e.g. China/Taiwan Global supply chain shortages and in
Slide 26: Krones Outlook 2023 – Segment targets
Krones Outlook 2023 – Segment targets Filling and Packaging Process Intralogistics Technology Technology Revenue growth 7% – 9% 15% – 20% 10% – 15% EBITDA margin 9% – 11% 6% – 7% 6% – 7% 26 Krones Conference Call May 05, 2023
Slide 27: Key take aways
Key take aways 1. Very high order intake and order backlog – excellent base for 2023 and 2024 and relevant price increases are imposed 2. Strong improvement in profitability, due to efficiency improvement measures and strong service business in all regions 3. After an excellent free cash flow genera
Slide 28: Questions and Answers
Questions and Answers 28 Krones Conference Call May 05, 2023
Slide 29: Thank you for your attention!
Thank you for your attention! 29 Krones Conference Call May 05, 2023
Slide 30: Financial calendar 2023/2024
Financial calendar 2023/2024 August 1, 2023 Conference Call Group Quarterly statement for the period from 1 January to June 30, 2023 November 3, 2023 Conference Call Group Quarterly statement for the period from 1 January to September 30, 2023 February 22, 2024 Conference Call Group Preliminary figu
Slide 31: 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
Slide 32: Solutions Beyond Tomorrow
SOLUTIONS BEYOND TOMORROW