Krones Ag · XETR:KRN
Krones — Q1 2018 Earnings Presentation
17 slides from Krones's earnings presentation, Apr 26, 2018
Slide 1: KRONES Q1 2018 Conference Call
KRONES Q1 2018 Conference Call April 26, 2018
Slide 2: Krones Highlights Q1 2018
2 ｜KRONES Conference Call April 26, 2018 Krones Highlights Q1 2018 + 13% 992.4 € Mio. 891.7 Revenue (-1%) € Mio. New orders 6.3% -10.9 Operating free cash flow € Mio. (PY -80.1 € Mio.) 56.2 € Mio. EBT margin
Slide 3: Strong order intake
3 ｜KRONES Conference Call April 26, 2018 Strong order intake New orders by quarter (€ million) 3,787 +10% 3,441 +8% 1,090 989 +10% +13% Q4 918 850 +8% +8% Q3 904 780 +16% Q2 +6% 992 875 +13% 822 Q1 +6% +4% 2016 2017 2018 1,145 1,240 1,341 (31.03.) Orders on hand at Dec. 31 (€ million)
Slide 4: Revenue decrease only slightly from high prior-year figure
4 ｜KRONES Conference Call April 26, 2018 Revenue decrease only slightly from high prior-year figure Revenue development by quarter (€ million) 3,691 +9% 3,391 +7% 1,182 +17% 1,011 +12% Q4 734 820 -11% Q3 +7% 876 788 +11% Q2 +3% 899 892 Q1 772 +17% -1% +4% 2016 2017 2018
Slide 5: Krones' revenue is well balanced
5 ｜KRONES Conference Call April 26, 2018 Krones' revenue is well balanced Share of revenue (Q1) North America CIS/Central Asia 2017 2018 2017 2018 15.1% 11.7% 2.2% 2.6% South America China 2017 2018 2017 2018 7.9% 11.6% 7.4% 6.7% Europe Asia/Pacific 2017 2018 2017 2018 40.2% 40.4% 15.2% 13.0% Africa
Slide 6: EBT declined temporarily
6 ｜KRONES Conference Call April 26, 2018 EBT declined temporarily EBT by quarter (€ million) EBT margin by quarter (%) 258.8 237.6 +9% +6% 8,0% 90.8 Q4 74.0 7.7% 7,5% 7.3% 7.3% 47.0 2017 Q3 56.3 2016 7,0% 7.1% 55.0 6.9% Q2 52.2 6,5% 6.6% 55.1 66.0 56.2 2018 6.4% Q1 6.3% 6.3% 6,0% 2016 2017 2018 Q1 Q
Slide 7: Material and personnel cost
7 ｜KRONES Conference Call April 26, 2018 Material and personnel cost Material cost Q1 (€ million) 449.8 453.6 374.4 48.1 49.6 50.1 2016 2017 2018 Material cost to total performance (%) Personnel cost Q1 (€ million) 289.8 271.5 242.7 31.2 29.9 32.0 2016 2017 2018 Personnel cost to total performance (
Slide 8: High cost pressure requires additional measures
8 ｜KRONES Conference Call April 26, 2018 High cost pressure requires additional measures Cost Pressure EBT-Margin KRONES cost saving initiatives − Value strategy programme − Impact of larger initatives like Global Footprint to increase over next years 1 2 3 4 5 6 7 8 9 PAST TODAY MID-TERM
Slide 9: Krones continues to grow its workforce in Emerging Markets
9 ｜KRONES Conference Call April 26, 2018 Krones continues to grow its workforce in Emerging Markets KRONES employee worldwide KRONES employee development in the Emerging Markets Year South Africa Asia CIS/East China Total 15,299 15,461 America Europe 14,443 2016 549 386 602 155 508 2,200 31.12. 2017
Slide 10: Product filling and decoration
10 ｜KRONES Conference Call April 26, 2018 Product filling and decoration New core segment with stable growth Revenue development Q1 EBT development Q1 MEDIUM-TERM TARGETS: 4 ‒ 6% (€ million) (€ million) 774 746* 708* 63.9* 61.3 55.7* -4 % +4 % +6 % +5 % +15 % +13 % Growth 8% 7.9% 8.6% 7.9% EBT margi
Slide 11: Beverage production/process technology
11 ｜KRONES Conference Call April 26, 2018 Beverage production/process technology Revenue and earnings decrease as expected Revenue development Q1 EBT development Q1 MEDIUM-TERM TARGETS: 8 ‒ 10 % (€ million) (€ million) 154 +139 % 118 -23 % 2.1 Growth 64 +1.4% -7 % 4% -0.9% 2016 -0.6 2017 2018 -4.3%
Slide 12: Working capital still too high
12 ｜KRONES Conference Call April 26, 2018 Working capital still too high Working capital* in % ROCE* in % (Q1) of revenue (Q1) 28.2 26.8 17.8 24.5 16.7 15.3 2016 2017 2018 2016 2017 2018 *LTM (Last Twelve Months)
Slide 13: Krones significantly improved cash flow from operating activities and free cash flow
13 ｜KRONES Conference Call April 26, 2018 Krones significantly improved cash flow from operating activities and free cash flow Q1 (€ million) 2018 2017 Earnings before taxes 56.2 66.0 +/– Non-cash changes +92.2 +43.4 +/– Change in Working Capital -93.2 -113.2 +/– Other assets and liabilities -39.4 -
Slide 14: Krones targets 2018
14 ｜KRONES Conference Call April 26, 2018 Krones targets 2018 Revenue growth EBT margin Working Capital/ Revenue 6% 7.0% 26%
Slide 15: Thank you for your attention!
Slide 16: Financial calender 2018
16 ｜KRONES Conference Call April 26, 2018 Financial calender 2018 June 13, 2018 Annual General Meeting July 26, 2018 Conference Call Group Q2 2018 and Interim Report as per June 30 October 25, 2018 Conference Call Group Q3 2018 and Quarterly Statement as per September 30 Olaf Scholz Head of Investor
Slide 17: Disclaimer
17 ｜KRONES Conference Call April 26, 2018 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