Krones Ag · XETR:KRN
Krones — H1 2020 Earnings Presentation
24 slides from Krones's earnings presentation, Jul 30, 2020
Slide 1: First Half Year 2020 Conference Call
KRONES First Half Year 2020 Conference Call July 30, 2020
Slide 2: Krones Q2 2020
2 ｜KRONES Conference Call July 30, 2020 Krones Q2 2020 Revenue from April to June fell by 16.5% year-on-year. In the first half of 2020, revenue went down by 10.1% to 1,698.6 EURm. Extreme uncertainty due to the corona situation is affecting investment confidence among customers. Order intake decrea
Slide 3: Financials Q2 2020
3 ｜KRONES Conference Call July 30, 2020 Financials Q2 2020
Slide 4: Krones Highlights 1st HY 2020
4 ｜KRONES Conference Call July 30, 2020 Krones Highlights 1st HY 2020 -28.5% 1,457 EURm 1,699 Sales (-10.1%) EURm New orders Free cash flow -64.8 7.0% EURm (PY -259.4 EURm) 118.5 EURm (PY 116.9 EURm; 6.2%) EBITDA margin
Slide 5: Order Intake and Sales Significantly Affected by Covid-19
5 ｜KRONES Conference Call July 30, 2020 Order Intake and Sales Significantly Affected by Covid-19 4,084 3,959 − Full Covid-19 impact in Q2 order intake worldwide after moderate negative impact 1,126 1,069 in Q1 − All regions were affected by the decrease. The 919 reduction in Africa, Asia/Pacific an
Slide 6: Krones' Sales Split
6 ｜KRONES Conference Press Conference Call July 30, 2020Meeting – 29th of April 2019 & Analyst Krones’ Sales Split Share of Sales (1st HY) CIS/Central Asia 2018 2019 2020 Europe 2.3% 1.8% 2.3% 2018 2019 2020 37.3% 41.1% 37.2% China 2.6% 2.3% North America 2018 2019 2020 2018 2019 2020 35.9% 37.2% 6.
Slide 7: Personnel and Material Costs Significantly Reduced
7 ｜KRONES Conference Call July 30, 2020 Personnel and Material Costs Significantly Reduced Personnel cost (EURm) 1st HY 641.7 574.4 594.9 540.1 − Besides first positive effects from the structural 31.8 33.6 34.9 measures, with a decrease on employees (first 31.5 6 months of around 450 FTE less), add
Slide 8: EBITDA Stable at June 30, 2020 due to High Cost Flexibility
8 ｜KRONES Conference Call July 30, 2020 EBITDA Stable at June 30, 2020 due to High Cost Flexibility of Krones EBITDA (in EURm) EBT (in EURm) 116.9 118.5 − Due to cost reduction impacts and 89.5 51.5 53.0 product mix change, EBITDA in Q2 86.0 47.9 and HY1 20202 nearly on same level as last year 31.8
Slide 9: Development of Sales and EBITDA per Segment in 1st HY
9 ｜KRONES Conference Call July 30, 2020 Development of Sales and EBITDA per Segment in 1st HY Segment Sales (EURm) 1st HY EBITDA (EURm) 1st HY −Targets Due 2020 to week *** market conditions sales in the core business decreased compared to Product filling Growth EBITDA margin previous year by minus
Slide 10: Working Capital Ratio Mainly Influenced by Sales Decrease
10 ｜KRONES Conference Call July 30, 2020 Working Capital Ratio Mainly Influenced by Sales Decrease Working capital* in % ROCE* in % (1st HY) of revenue (1st HY) − Working Capital in euros was quite stable at 28.8 15.5 30.6. compared to prior year Q2 − The Increase in the working Capital to Sales rat
Slide 11: Free Cash Flow Improved Significantly by 195m vs. Prior Year
11 ｜KRONES Conference Call July 30, 2020 Free Cash Flow Improved Significantly by 195m vs. Prior Year 1st HY (EURm) 2020 2019 Earnings before taxes 31.8 47.9 − Lower increase in working capital compared to +/– Other non-cash changes +95.7 +102.0 2019 and reduced capex result in a better free +/– Cha
Slide 12: Impact on Beverage Industry by Covid-19
12 ｜KRONES Conference Call July 30, 2020 Impact on Beverage Industry by Covid-19
Slide 13: GDP Growth Forecast 2020
13 ｜KRONES Conference Call July 30, 2020 ING Research July 2020: World Economic Outlook for 2020/2021 GDP Growth Forecast 2020 Base Case Worst Case Base Case Scenario 0 No more lockdowns -2 -1.5 Social Distancing: 6-12 months -4 Change in GDP in % -6 -4.5 -4.9 -5.7 -5.5 Vaccine: Q4/2020 – Q1/2021 -8
Slide 14: Forecast Beverage Consumption 2020 – By Regions
14 ｜KRONES Conference Call July 30, 2020 Forecast Beverage Consumption 2020 – By Regions North America Europe 306 290 Δ -5% (-16 billion*) 198 170 Δ -14% (-28 billion *) 2020 2020 2020 2020 Africa/Middle East Asia Δ -4% (-5 billion*) 527 Δ -7% (-37 billion*) 113 109 489 Latin America 201 188 Δ -6% (
Slide 15: Forecast Beverage Consumption 2020 – By Categories
15 ｜KRONES Conference Call July 30, 2020 Forecast Beverage Consumption 2020 – By Categories Winners and losers of the crises Global change in comsumption in % compared to the previous year Volume in Billion liters (2019) Total -5,4% 1.317 2,1% Dairy 5,4% 208 *liquid and solid dairy products 2,0% Bot
Slide 16: Impact of the Covid19-Pandemic
16 ｜KRONES Conference Call July 30, 2020 Impact of the Covid19-Pandemic Covid-Pandemic Society Consumer behaviour − Reduced social contacts − Increased price sensitivity − Restrictions for restaurants − Reduced impulse purchases & catering areas − Reduced To-Go-consumption − Ban on all mass events (
Slide 17: What are the Impacts of Covid-19 on the Krones' Customers?
17 ｜KRONES Conference Call July 30, 2020 What are the Impacts of Covid-19 on the Krones‘ Customers? − Our customers are strongly affected by Covid-19 as well! − Our customers have an average share in sales through bars, restaurants and „on-the-go“ business of about 15-30% − Shutdowns of restaurants
Slide 18: A Short View on our Regions (at present)
18 ｜KRONES Conference Call July 30, 2020 A Short View on our Regions (at present) EU NA SA MENA APAC CHINA Ø Share of Sales ~ 38 % ~ 16 % ~ 12 % ~ 14 % ~ 12 % ~7% Order activities CAPEX Order activities OPEX (After Sales) Challenges Customer contact ✓ ✓ _ ✓ _ ✓ ✓ Service technicians local ✓ ✓ _ ✓ _
Slide 19: Development of Plant Hungary 2019 – 2020
19 ｜KRONES Conference Call July 30, 2020 Development of Plant Hungary 2019 – 2020 Update: – Plant Hungary in full operation in Q1 2021 – Four-months delay in the final manufacturing relocation (Corona) and also in the subsequent assemblies (due to parts logistics) – Five-month stop training due to C
Slide 20: Krones Targets 2020
20 ｜KRONES Conference Call July 30, 2020 Krones Targets 2020 Reliable Outlook on Sales and Earnings not possible due to Covid-19 Situation
Slide 21: Questions and Answers
21 ｜KRONES Conference Call July 30, 2020 Questions and Answers ? …
Slide 22: 22 ｜KRONES Conference Call July 30, 2020
22 ｜KRONES Conference Call July 30, 2020
Slide 23: Financial Calendar 2020
23 ｜KRONES Conference Call July 30, 2020 Financial Calendar 2020 November 12, 2020 Conference Call Group Q3 2020 and Quarterly Statement as per September 30 November 12, 2020 Capital Markets Day Olaf Scholz Head of Investor Relations KRONES AG Böhmerwaldstrasse 5 93073 Neutraubling Germany Olaf.Scho
Slide 24: Disclaimer
24 ｜KRONES Conference Call July 30, 2020 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 forw