Krones Ag · XETR:KRN
Krones — Q3 2017 Earnings Presentation
21 slides from Krones's earnings presentation, Oct 25, 2017
Slide 1: Krones January – September 2017 Conference Call
Krones January – September 2017 Conference Call October 25, 2017
Slide 2: Krones Highlights Q1-Q3 2017
2 ｜KRONES Conference Call October 25, 2017 Krones Highlights Q1-Q3 2017 + 10.0% €2,696.8 million €2,508.9 million Order intake Revenue (+5.4 %) -€209.1 million 6.7% EBT margin €168.0 million Operating free cash flow (PY -€164.7 million)
Slide 3: Strong order intake
3 ｜KRONES Conference Call October 25, 2017 Strong order intake New orders by quarter (€ million) 3,441 3,189 +8% +5% 989 2,697 878 +13% +10% Q4 +4% 918 787 850 +8% +7% +8% Q3 780 904 737 +6% +16% Q2 +2% 787 822 875 Q1 +6% +7% +4% 2015 2016 2017 1,095 1,145 1,333 (30.09.) Orders on hand (€ million)
Slide 4: Krones sales on track
4 ｜KRONES Conference Call October 25, 2017 Krones sales on track Revenue development by quarter (€ million) 3,391 3,174 +7% +7% 1,011 903 +12% 2,509 Q4 +14% +5% 820 734 767 +7% -10 % Q3 +5% 876 765 788 Q2 +11% +4% +3% 899 739 772 Q1 +17% +5% +4% 2015 2016 2017
Slide 5: Krones' revenue split remains well balanced
5 ｜KRONES Conference Call October 25, 2017 Krones' revenue split remains well balanced Share of revenue in Q1 – Q3 CIS/Central Asia Europe 2015 2016 2017 China North America 2015 2016 2017 2.9% 2.3% 2.0% 2015 2016 2017 2015 2016 2017 37.1% 34.6% 36.4% 8.0% 10.5% 6.0% 12.9% 13.3% 15.0% Africa/Middle
Slide 6: EBT margin influenced by one-offs
6 ｜KRONES Conference Call October 25, 2017 EBT margin influenced by one-offs EBT by quarter (€ million) 237.6 223.3 +6% +16% 74.0 168.0 67.2 +3% Q4 47.0 6.9 6.9 6.7 56.3 52.0 Q3 55.0 52.2 Q2 53.9 66.0 50.2 55.1 Q1 2015 2016 2017 EBT margin (%, Q1 – Q3)
Slide 7: Personnel and goods and services purchased
7 ｜KRONES Conference Call October 25, 2017 Personnel and goods and services purchased Personnel cost in Q1 – Q3 (€ million) 786.5 695.2 727.2 30.1 31.5 31.6 2015 2016 2017 Personnel cost to total operating performance (%) Goods and services purchased in Q1 – Q3 (€ million) 1,199.5 1,107.7 1,109.9 48
Slide 8: Krones continues to invest in its workforce
8 ｜KRONES Conference Call October 25, 2017 Krones continues to invest in its workforce Krones employees worldwide 15,174 Krones employee development in the emerging markets 14,443 Year South Africa Asia CIS/East China Total 13,346 America Europe 2015 519 376 502 147 451 1,995 31.12. 10,061 10,295 9,
Slide 9: Product filling and decoration: Strong EBT margin
9 ｜KRONES Conference Call October 25, 2017 Product filling and decoration Strong EBT margin Revenue development EBT development MEDIUM-TERM TARGETS: in Q1 – Q3 (€ million) in Q1 – Q3 (€ million) 4 ‒ 6% 169.9 2,039 +1% 2,050 158.4 +7% 1,906 +7% 145.6 +9% Growth 8% EBT margin 8.3 7.6 7.8 2015 2016 201
Slide 10: Beverage production/process technology: Profitability below expectations
10 ｜KRONES Conference Call October 25, 2017 Beverage production/process technology Profitability below expectations Revenue development EBT development MEDIUM-TERM TARGETS: in Q1 – Q3 (€ million) in Q1 – Q3 (€ million) 8 ‒ 10 % 369 287 +46% -12% 252 2015 2016 2017 6.4 Growth 2.2 0.6 4% 0.2 EBT margi
Slide 11: Compact class: Margin further improved
11 ｜KRONES Conference Call October 25, 2017 Compact class Margin further improved Revenue development EBT development MEDIUM-TERM TARGETS: in Q1 – Q3 (€ million) in Q1 – Q3 (€ million) 78 +14% 89 0% 89 2015 4.1 +12% 2016 4.6 +7% 2017 4.9 4 ‒ 6% Growth 5.5 5% 5.1 EBT margin 5.2 2015 2016 2017 EBT mar
Slide 12: Working capital still too high
12 ｜KRONES Conference Call October 25, 2017 Working capital still too high Working capital* in % ROCE* in % (Q1 – Q3) of revenue (Q1 – Q3) 17.0 26.3 26.5 15.5 24.5 14.6 2015 2016 2017 2015 2016 2017 *LTM (Last Twelve Months)
Slide 13: Krones free cash flow decreased
13 ｜KRONES Conference Call October 25, 2017 Krones free cash flow decreased Q1 – Q3 (€ million) 2017 2016 Earnings before taxes 168.0 163.6 +/– Non-cash expenses and income +35.1 +120.0 +/– Change in working capital -228.6 -229.7 +/– Other assets and liabilities -114.8 -163.3 Cash flow from operatin
Slide 14: Robust capital structure
14 ｜KRONES Conference Call October 25, 2017 Robust capital structure Assets (€ million) Equity and liabilities (€ million) 3,071 3,071 3,011 Total 3,011 Total Property, plant 2,707 and equipment, 2,707 726 760 intangible assets, and financial assets 1,226 646 1,267 73 Non-current assets 80 Equity 1,
Slide 15: Krones targets 2017
15 ｜KRONES Conference Call October 25, 2017 Krones targets 2017 Revenue growth EBT margin Working capital/ revenue +4% 7.0% 27%
Slide 16: Krones targets 2020
16 ｜KRONES Conference Call October 25, 2017 Krones targets 2020 Annual revenue EBT margin Working capital/ growth revenue 7% 8% 22%
Slide 17: Location of new Eastern Europe plant: Debrecen, Hungary
17 ｜KRONES Conference Call October 25, 2017 Location of new Eastern Europe plant: Debrecen, Hungary After thorough analyses, the decision has been made to locate Krones' Debrecen new plant in Debrecen, Hungary. Debrecen is Hungary's second-largest city and the economic and educational centre of East
Slide 18: Five Executive Board Members as of January 1, 2018
18 ｜KRONES Conference Call October 25, 2017 Five Executive Board Members as of January 1, 2018 C. Klenk M. Andersen T. Ricker R. Goldbrunner M. Tischer CEO CFO CSO Member of the board Member of the board Bottling and PaC (Processing, Today Packaging Equipment; Intralogistics, Compact Class Digitalis
Slide 19: Thank you for your attention!
Slide 20: Financial calendar 2018
20 ｜KRONES Conference Call October 25, 2017 Financial calendar 2018 February 22, 2018 Conference Call Preliminary Figures 2017 March 15, 2018 Annual Report 2017 April 26, 2018 Conference Call Group Q1 2018 and Quarterly Statement as per March 31 June 13, 2018 Annual General Meeting Olaf Scholz Head
Slide 21: Disclaimer
21 ｜KRONES Conference Call October 25, 2017 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 f