Slide 1: Krones Q1 2024 Conference Call
Krones Q1 2024 Conference Call May 03, 2024 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones reports strong figures for Q1 2024; key figures in line with targets
Krones reports strong figures for Q1 2024; Q1 2024 key figures are full in line with targets for 2024 Order intake in Q1 2024 at Revenue growth in Q1 2024 by EBITDA margin after Targets for 2024 include the €1.5bn as a result of strong 4.0% yoy to €1.2bn, in line to 3 months increased from effects o
Slide 3: Krones highlights Q1
Krones highlights Q1 €1.48 billion +4.0% 10.1% +€184 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY +€1.51 billion) €1,247 million (PY 9.6%) (PY -€21 million) 3 Krones Conference Call May 03, 2024
Slide 4: Order intake (€ million)
Order intake (€ million) − The high market demand in Order intake (€ million) the filling and packaging industry continued to be very 5,783 +34.0% 5,377 high in Q1 2024 1,183 -7.0% − The Q1 order intake of €1.48bn Q4 1,263 was slightly below the extraordinary high amount of 1,493 Q3 1,328 prior year
Slide 5: Order backlog (€ million)
Order backlog (€ million) − With a book-to-bill ratio of 1.19x Order backlog (€ million) the order backlog at 31.03.2024 is 5.7% above the very high level at 4,358 4,122 year end 2023 +5.7% 3,466 +18.9% − Delivery times improved since the +83.1% beginning of the year from 70 to 60 weeks FY 2022 FY 2
Slide 6: Development of order intake 2006–2024
Development of order intake [€ million] 2006 – 2024 5.783 5.580 5.377 +6% p.a. 4.316 3.957 4.084 3.787 3.441 3.307 3.040 3.189 2.721 2.809 2.514 2.300 2.326 2.194 1.967 1.916 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 The longterm view of order int
Slide 7: Netstal
Netstal After closing, fundamental alignment in all categories has been done to strengthen the Netstal brand Market and Product Value capture aligned Financials opportunities on Target markets for growth are addressed Branding and Pricing Mid term targets agreed by Region Direct cost reducti
Slide 8: Krones Group Sustainability Goals 2030
Krones Group Sustainability Goals 2030 Upstream chain Own operations Downstream chain Until 2040 NET- Reducing Scope 3 Reducing Scope Reducing Scope 3 -30% emissions in upstream processes -80% 1+2 emissions in our operations -30% emissions of sold products ZERO Reducing water and Reducing energy 100
Slide 9: Well-balanced revenue split in industrialized and emerging markets
The well-balanced revenue split in industrialized and emerging markets reflects the strong resilience of Krones Share of revenues (Q1) Eastern Europe/ Europe Central Asia Prag 32.7% 7.8% 30.9% 6.3% 5.5% North and 29.3% Central America 2022 2023 2024 24.5% 22.8% 20.8% China 2022 2023 2024 10.2% 6.0%
Slide 10: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) Revenue growth in Q1 2024 (+4.0%) was 4,721 fully in line with expectations to achieve +12.2% revenue guidance of 9%–13% for the full year 4,209 1,235 2024 +15.8% − Despite the lower number of working days 1,165 in Q1 2024 compared to the previous year, Q4
Slide 11: EBITDA and EBITDA margin further improved
EBITDA and EBITDA margin further improved EBITDA (€ million) (€ million and %) EBITDA margin in % 457.3 +22.5% EBITDA margin at 10.1% with EBITDA 125.0 at €125m (+9%) 373.3 − Despite higher personnel- and +19.4% material costs EBITDA was increased 103.2 by 9.1% and therefore stronger than Q4 the rev
Slide 12: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) EBT (€ million) EBT margin in % EBT margin increased in Q1 2024 to 310.5 7.1% vs. 6.9% Q1 prior year +28.3% − EBT also increased and is with €89m 75.1 7.2% above Q1 prior year (€83m) 242.1 − EBT was just slightly influenced by a +36.5% small financial
Slide 13: Personnel and material expenses Q1
Personnel and material expenses Q1 (€ million and %) − Personnel costs increased by 8.6% Personnel costs Q1 (€ million) Material costs Q1 (€ million) and as a result the personnel cost ratio is with 30.5% slightly above Q1 620 prior year (29.7%) and so remains 589 around 30% 486 − Despite to higher
Slide 14: Krones employees worldwide
Krones employees worldwide – Growth in Germany in Q1 2024 (+1.4%) also includes hiring of service engineers; a further growth in the RoW (+9%) mainly related to M&A (Netstal) Total Germany RoW Thereof KAG 19,349 18,513 17,164 10,654 10,803 10,130 7,859 8.546 8,608 7.034 9,056 9,170 31.12.2022 31.12.
Slide 15: Revenue and EBITDA per segment (1/3)
Revenue and EBITDA per segment (1/3) Filling and Packaging Technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 − Increase in revenue (+3.8%) is nearly at 1,043 same level as of the group and was 1,004 influenced by the same effects regarding working days
Slide 16: Revenue and EBITDA per segment (2/3)
Revenue and EBITDA per segment (2/3) Process Technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 − Revenues increased by 16.5% and is in line with the growth target for full year 128 2024 (15% to 20%) 110 − EBITDA margin in Q1 2024 of 11.6% vs. 6.5% prev
Slide 17: Revenue and EBITDA per segment (3/3)
Revenue and EBITDA per segment (3/3) Intralogistics Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 − Revenue in Q1 2024 decreased to €77m (vs. €85m previous year). It 85 77 should be taken into account that in Q1 2023 revenue increased by +33%. Additionally, a
Slide 18: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments − With €442m cash and €857m Liquidity reserves Equity (€ million) and equity ratio (in %) free credit lines Krones has a 31.03.2024 very strong financial 1,776 position with €1.3bn l
Slide 19: Working Capital Q1 (in %)
Working Capital Q1 (in %) Working Capital remains with an average of 17.7% vs. 17.9% Working Capital of revenue Q1 Part of Working Capital in % (%, average over four quarters) of revenue (last 12 months) − The receivables/POC increased just slightly by +0.4% relating to the revenues. In Euro amount
Slide 20: Free cash flow Q1
Free cash flow Q1 With a strong operative cash flow in Q1 (€ million) 2024 2023 2024 the free cash flow (w/o M&A) was strong at €184m Earnings before taxes (EBT) 89.0 83.0 +/– Other non-cash changes +99.3 +88.7 − With a good earnings situation and a decrease in working capital by €24m (prior +/– Cha
Slide 21: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of FY 2023 and FY 2022 must 398 be considered together − With the Free cash flow in Q1 2024 the acquisition of Netstal was financed entirely from our own cash 221 − As consequence of the high free cash
Slide 22: ROCE
ROCE − ROCE, as the third target figure, is at ROCE Q1 2022 – 2024* in % 19.0% at the upper end of expectations for FY 2024 (17% to 19%) and also 19.0 better than 17.8% of Q1 2023 17.8 − The positive development is mainly based on higher earnings − This increase in earnings will compen- sate the fur
Slide 23: Outlook 2024
Outlook 2024 23 Krones Conference Call May 03, 2024
Slide 24: 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 assumptions: 1. No further escalation of Russia-Ukraine conflict and in Middle East 2. No geopolitical escalat
Slide 25: Krones Outlook 2024 – Segment targets
Krones Outlook 2024 – Segment targets (including the acquisition of Netstal in the core segment) Filling and Packaging Process Intralogistics Technology Technology Revenue growth 9% – 13% 15% – 20% 5% – 10% EBITDA margin 10.3% – 10.8% 8% – 9% 6% – 7% 25 Krones Conference Call May 03, 2024
Slide 26: Key take aways
Key take aways 1. Krones has realized a successful first quarter 2024. Markets are strong and our customers continue to invest 2. With a very large order backlog Krones has planning certainty and a capacity utilization beyond mid-2025 3. Further strong improvement in profitability, due to price sett
Slide 27: Questions and Answers
Questions and Answers 27 Krones Conference Call May 03, 2024
Slide 28: Thank you for your attention!
Thank you for your attention! 28 Krones Conference Call May 03, 2024
Slide 29: Financial calendar 2024
Financial calendar 2024 June 4, 2024 Annual General Meeting in Regensburg July 3, 2024 Capital Market Day in Neutraubling 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 f
Slide 30: 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 31: Solutions Beyond Tomorrow
SOLUTIONS BEYOND TOMORROW