Krones Ag · XETR:KRN
Krones — Q1 2017 Earnings Presentation
19 slides from Krones's earnings presentation, Apr 27, 2017
Slide 1: KRONES Q1 2017 Conference Call
KRONES Q1 2017 Conference Call April 27, 2017
Slide 2: KRONES Highlights Q1 2017
2 ｜KRONES Conference Call April 27, 2017 KRONES Highlights Q1 2017 + 6.5% 875.5 € Mio. 899.4 Revenue (+16.5 %) € Mio. New orders Operating cash flow -80.1 7.3% € Mio. (PY -115,1 Mio. €) 66.0 € Mio. EBT margin
Slide 3: Strong order intake
3 ｜KRONES Conference Call April 27, 2017 Strong order intake New orders by quarter (€ million) 3,441 3,189 +8 % +5 % 989 878 +13 % Q4 +4 % 787 850 +7 % +8 % Q3 737 780 Q2 +2 % +6 % 787 822 876 Q1 +7 % +7 % +4 % 2015 2016 2017 1,095 1,145 1,121 (Q1) Orders on hand (€ million)
Slide 4: Revenue at a high level, partly on earlier project realization
4 ｜KRONES Conference Call April 27, 2017 Revenue at a high level, partly on earlier project realization Revenue development by quarter (€ million) 3,391 3,174 +7 % +7 % 1,011 903 +12 % Q4 +14 % 820 767 +7 % Q3 +5 % 765 788 Q2 +4 % +3 % 899 739 772 Q1 +17 % +5 % +4 % 2015 2016 2017
Slide 5: KRONES' revenue is well balanced
5 ｜KRONES Conference Call April 27, 2017 KRONES' revenue is well balanced Share of revenue (Q1) CIS/Central Asia Europe 2015 2016 2017 China North America 2015 2016 2017 3.9 % 3.2 % 2.2 % 2015 2016 2017 2015 2016 2017 39.5 % 41.5 % 40.2 % 8.8 % 6.0 % 7.4 % 14.5 % 14.1 % 15.1 % Africa/Middle East 201
Slide 6: EBT increased as expected, partly on earlier project realization
6 ｜KRONES Conference Call April 27, 2017 EBT increased as expected, partly on earlier project realization EBT by quarter (€ million) 237.6 223.3 +6 % +16 % 74.0 67.2 Q4 56.3 52.0 Q3 6.8 7.1 7.3 Q2 53.9 52.2 66.0 50.2 55.1 Q1 2015 2016 2017 EBT margin in %
Slide 7: Personnel and material cost
7 ｜KRONES Conference Call April 27, 2017 Personnel and material cost Personnel cost Q1 (€ million) 271.5 232.2 242.7 29.3 31.2 29.9 2015 2016 2017 Personnel cost to total performance (%) Material cost Q1 (€ million) 449.8 385.3 374.4 48.7 49.6 48.1 2015 2016 2017 Material cost to total performance (
Slide 8: KRONES continues to grow its workforce in Emerging Markets
8 ｜KRONES Conference Call April 27, 2017 KRONES continues to grow its workforce in Emerging Markets KRONES employee worldwide KRONES employee development in the Emerging Markets 14,443 14,660 Year South Africa Asia CIS/East China Total 13,346 America Europe 2015 519 376 502 147 451 1,995 31.12. 10,0
Slide 9: Product filling and decoration: Margin increased
9 ｜KRONES Conference Call April 27, 2017 Product filling and decoration Margin increased Revenue development Q1 EBT development Q1 MEDIUM-TERM TARGETS: (€ million) (€ million) 4 ‒ 6% 716 670 62.5 647 53.8 +16 % +7 % 48.1 +13 % +4 % +12 % +16 % Growth 8.7% EBT margin 8% 8.0% 7.4% 2015 2016 2017 2015
Slide 10: Beverage production/process technology: Turnaround achieved
10 ｜KRONES Conference Call April 27, 2017 Beverage production/process technology Turnaround achieved Revenue development Q1 EBT development Q1 MEDIUM-TERM TARGETS: (€ million) (€ million) 154 +139 % 2.1 8 ‒ 10 % Growth 69 64 -33 % -7 % 1.1 +1.6 +1.4 EBT margin 4% -0.9 2015 2016 2017 2015 2016 2017 -
Slide 11: Compact class: Stable margin expected
11 ｜KRONES Conference Call April 27, 2017 Compact class Stable margin around 5 % expected Revenue development Q1 EBT development Q1 MEDIUM-TERM TARGETS: (€ million) (€ million) 4 ‒ 6% 38 +65 % +12 % 29 +5 % 23 -22 % -12 % 2015 2016 1.9 2017 Growth 1.4 1.0 EBT margin 5% 5.1 4.8 4.4 2015 2016 2017 201
Slide 12: Working Capital still at an unsatisfying level
12 ｜KRONES Conference Call April 27, 2017 Working Capital still at an unsatisfying level Working capital* in % ROCE* in % (Q1) of revenue (Q1) 26.8 17.8 24.8 24.5 16.5 16.7 2015 2016 2017 2015 2016 2017 *LTM (Last Twelve Months)
Slide 13: Krones improved free cash flow despite higher capex and acquisitions
13 ｜KRONES Conference Call April 27, 2017 Krones improved free cash flow despite higher capex and acquisitions Q1 (€ million) 2017 2016 Earnings before taxes 66.0 55.1 +/– Non-cash expenses and income +43.4 +81.5 +/– Change in Working Capital -113.2 -114.8 +/– Other assets and liabilities -58.2 -123
Slide 14: Equity ratio at 42.3 %
14 ｜KRONES Conference Call April 27, 2017 Equity ratio at 42.3 % Assets in € million Equity and liabilities in € million 3,071 3,071 3,011 Total 3,011 Total Property, plant 2,707 and equipment, 2,707 726 intangible assets, and 754 financial assets 1,226 646 1,273 73 Non-current assets 87 Equity 1,11
Slide 15: Krones targets 2017
15 ｜KRONES Conference Call April 27, 2017 Krones targets 2017 Annual revenue EBT margin Working Capital/Sales growth +4% 7.0% 27%
Slide 16: Our latest acquisitions and new subsidiaries
16 ｜KRONES Conference Call April 27, 2017 Our latest acquisitions and new subsidiaries Integrated Packaging Solutions, Dubai Middle East/Northern Africa sales and service network Krones with 40% ownership Revenues: >€20m Employees: approx. 200 Process and Data Automation, Erie MES/industri
Slide 17: Thank you for your attention!
Slide 18: Financial calender 2017
18 ｜KRONES Conference Call April 27, 2017 Financial calender 2017 June 20, 2017 Annual General Meeting July 20, 2017 Conference Call Group Q2 2017 and Interim Report as per June 30 October 26, 2017 Conference Call Group Q3 2017 and Quarterly Statement as per September 30 Olaf Scholz Head of Investor
Slide 19: Disclaimer
19 ｜KRONES Conference Call April 27, 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 for