Krones Ag · XETR:KRN
Krones — H1 2023 Earnings Presentation
35 slides from Krones's earnings presentation, Aug 1, 2023
Slide 1: Krones First Half Year 2023
Krones First Half Year 2023 Conference Call August 01, 2023 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones reports a strong first half year 2023
Krones reports a strong first half year 2023. Revenue guidance raised to 11% to 13%; All key factors are in the expected ranges Order intake with €2.7bn in Revenue growth in first 6 In HY1 impacts of price Krones has increased target first 6 months 2023 just 10% months 2023 by 16.9% yoy to increases
Slide 3: Krones highlights 1st HY 2023
Krones highlights 1st HY 2023 €2,79 billion +16.9% 9.5% -€131 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY +€3,11 billion) €2,321 million (PY 8.8%) (PY +€68 million) 3 Krones Conference Call August 01, 2023
Slide 4: Order intake and orders on hand
Order intake and orders on hand (€ million) Market demand still very high. Strong Order intake order intake in HY1 2023 and orders on Orders on hand 5,783 hand increased again +34.0% − In the first 6 months 2023 the order intake 1,183 was at €2.79 billion, i.e., only 10.3% below the 4,316 very stron
Slide 5: Development of order intake 2006 – 2023p
Development of order intake [EURm] 2006 – 2023p* 6000 5,783 5000 4,316 3,957 4,084 4000 3,787 3,441 3,307 3,040 3,189 3000 2,721 2,809 2,514 2,300 2,326 2,194 1,967 1,916 2000 1000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023p After strong growth 2022,
Slide 6: General Global Beverage Consumption and Growth Drivers
General Global Beverage Consumption and Growth Drivers Development of global beverage consumption CAGR 22/27 Volume in billion liters, CAGRs in % +2.7% CAGR 17/22 1,611 +1.7% 1,409 225 1,297 73 Beer Bier 206 201 172 63 +1.8% Wine/spirits Wein/Spirituosen 59 +0.5% 148 +3.0% 274 143 +1.3% +3.1% Sensit
Slide 7: Beverage Packaging Development: Top Pack Types
Beverage Packaging Development: Top Pack Types Volume in bn units and %-share by pack type; CAGR* in % − EU proposal: mandatory share of Global +1.7% +2.8% returnable packaging in EU − Trend to recycled PET in the beverage 1,734 1,882 2,157 industry, e.g. South Korea and India are 18.0% +3.1% 19.3%
Slide 8: Forecast Monitor Summary global
Forecast Monitor Summary global Annually installed filling capacity Can Forecast PET Glass 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Recycling and reuse are equally beneficial to reduce the CO₂ footprint of beverage packaging. Sources: K
Slide 9: Customer interviews 2023 Key messages
Customer interviews 2023 Key messages Business development, market trends and Investment pattern and climate challenges − Overall positive business climate in the beverage − Based on customers feedback a further investment industry: stability and further (moderate) growth in sustainable and digitali
Slide 10: Steering sustainability transformation and performance
Steering sustainability transformation and performance Solutions Challenges ESG Climate Plastic Feeding the performance Change Littering World Sustainable Value Chain Energy and Media Circular Economy Sustainable Food − Pursuing a Net Zero − Future Line concepts with − Strengthen recycling − Focusin
Slide 11: Focus on carbon emissions (Scope 1+2)
Focus on carbon emissions (Scope 1+2) Reducing our on-site emissions according to our climate target 100% − Positive development continues in Q2 FC: − Already significantly below target line (10% delta to plan) 25,210 − Future reductions will become increasingly difficult t CO2e -80% 43,493 49,865 3
Slide 12: Krones joins forces regarding sustainability
Krones joins forces regarding sustainability Krones is now part of the econsense Forum for Sustainable Development of German Business Econsense is a cross-sectoral network comprising 49 of the German economy’s leading global players. It provides us with a platform for exchanging and transferring pra
Slide 13: Revenue per region reflects strong growth in 1st HY
Revenue per region reflects a strong growth in1st HY in North and South America and in APAC; the revenue split shows a strong resilience Eastern Europe/ Russia/Central Asia Share of sales (1st HY)) 2021 2022 2023 North and Europe 7.2% 5.5% 5.1% Central America 2021 2022 2023 2021 2022 2023 32.6% 33.
Slide 14: Revenue development by quarter
Revenue development by quarter (€ million) 4,209 Strong sales growth in HY1 2023 (16.9%); +15.8% Sales guidance raised to 11%–13% 3,634 1,165 − Despite supply chain shortages for electronic +9.4% devices the revenue in HY1 2023 with €2.3 billion increased by 16.9% 991 − Revenue in Q2 2023 slightly b
Slide 15: EBITDA and EBITDA margin strongly improved
EBITDA and EBITDA margin strongly improved (€ million and %) 373.3 +19.4% EBITDA at €221 million (+26%) and a 312.6 103.2 EBITDA (€ million) EBITDA margin at 9.5% +134.7% EBITDA margin in % − As a result of performance opti- mizations, EBITDA increased by 100.0 26.4% and therefore more strongly Q4 2
Slide 16: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) EBT at €161 million(+42%) and EBT margin strongly increased to 6.9% 242.1 EBT (€ million) 58.9 EBT margin in % − EBT also increased very strongly with +36.5% 42.3% in HY1 2023 and with a 65.5 margin of 6.9%, which is far above the previous year (HY1 20
Slide 17: Personnel and material expenses 1st HY
Personnel and material expenses 1st HY (€ million and %) − Personnel cost ratio with 30.1% slightly Personnel cost 1st HY (€ million) Material cost 1st HY (€ million) better than last year (30.6%) but on the level of full year 2022 (29.8%). Positive 1,146 effects from the fully implemented structura
Slide 18: Krones employees worldwide
Krones employees worldwide – growth in Germany (mainly at KAG) in HY1 2023 also includes hiring of temporary workers; a further growth in the rest of the world mainly for services and digitalization Total Germany RoW Thereof KAG 17,746 17,164 16,303 9,821 10,130 10,337 8,375 6,482 8,608 7,034 8,792
Slide 19: Revenue and EBITDA per segment: Filling and Packaging Technology
Revenue and EBITDA per segment Filling and Packaging Technology Revenue development 1st HY Segment EBITDA (€ million) and (€ million) EBITDA margin (%) 1st HY − Increase in revenue (+15.1%) are 1,927 slightly below group level; revenue target for 2023 was also increased to 1,674 10% to 12% (prev. 7%
Slide 20: Revenue and EBITDA per segment: Process Technology
Revenue and EBITDA per segment Process Technology Revenue development 1st HY Segment EBITDA (€ million) and (€ million) EBITDA margin (%) 1st HY − Revenues increased vs. prior year in the 2nd quarter by 39% whereas seasonal effects quite normal in the 215 business. After 6 months revenue increased b
Slide 21: Revenue and EBITDA per segment: Intralogistics
Revenue and EBITDA per segment Intralogistics Revenue development 1st HY Segment EBITDA (€ million) and − Revenues in the intralogistics (€ million) EBITDA margin (%) 1st HY segment are strongly influenced by seasonal effects. The growth in Q2 179 2023 of 28.6% and 30.8% after 6 months also results
Slide 22: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments − A good cash position of Liquidity reserves Equity (€ million) and equity ratio (in %) €329 million and also free 1st HY 2023 ~ €1.2bn credit lines of approx. 1,636 €860 million ref
Slide 23: Working Capital 1st HY
Working Capital 1st HY (in %) Further decrease in Working Capital with Working Capital of revenue 1st HY Part of Working Capital in % 17.2% vs. 21.6% HY1 2022 (%, average over four quarters) of revenue (last 12 months) − As a result of higher business activities (revenues 28.1 +16.9%), receivables i
Slide 24: Free cash flow 1st HY
Free cash flow 1st HY Cash flows of HY1 2023 must be seen in (€ million) 2023 2022 relation of extraordinary strong 2022 Earnings before taxes (EBT) 161.1 113.2 − Operating activities decreased to -€85m in HY1 2023 (vs. +€101m prior year). Despite +/– Other non-cash changes +65.2 +109.2 stable earni
Slide 25: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of HY1 2023 and FY 2022 must be considered together 398 − Free cash flow in 2023 is influenced by a further rising Working Capital based on stronger operative activities − Based on a negative Free cash
Slide 26: ROCE
ROCE − ROCE, as the third target figure, is at ROCE 1st HY 2021 – 2023* in % 17.8% slightly above the expectations for FY 2023 (15% to 17%) and also better than 14.1% of full year 2022 17.8 − The positive development of the last years is mainly based on higher earnings − This increase in earnings wi
Slide 27: Outlook 2023
Outlook 2023 27 Krones Conference Call August 1, 2023
Slide 28: Krones Outlook 2023 – increasing growth target and confirmed profitability
Krones Outlook 2023 – an increasing growth target and strong confirmation of profitability Kernaussage New target: Confirmed: Confirmed: 11% – 13% 9% – 10% 15% – 17% Revenue growth EBITDA margin ROCE (prev. 8% – 11%) Key assumptions: 1. No further escalation of Russia-Ukraine conflict 2. No geopolit
Slide 29: Krones Outlook 2023 – Segment targets
Krones Outlook 2023 – Segment targets Filling and Packaging Process Intralogistics Technology Technology New target: New target: Confirmed: Revenue 10% – 12% 20% – 25% 10% – 15% growth (prev. 7% – 9%) (prev. 15% – 20%) Confirmed: Confirmed: Confirmed: EBITDA margin 9% – 11% 6% – 7% 6% – 7% 29 Krones
Slide 30: Key take aways
Key take aways 1. Based on customer feedbacks, a further investment in sustainable and digitalized solutions is expected also midterm 2. Despite strong revenue growth in 2023 order backlog has further increased – an excellent base for 2023 and 2024 3. Supply chain situation is very challenging, main
Slide 31: Questions and Answers
Questions and Answers 31 Krones Conference Call August 01, 2023
Slide 32: Thank you for your attention!
Thank you for your attention! 32 Krones Conference Call August 01, 2023
Slide 33: Financial calendar 2023/2024
Financial calendar 2023/2024 November 3, 2023 Conference Call Group Quarterly statement for the period from 1 January to September 30, 2023 February 22, 2024 Conference Call Group Preliminary figures for the period from 1 January to December 31, 2023 May 3, 2024 Conference Call Group Quarterly state
Slide 34: 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 35: Solutions Beyond Tomorrow
SOLUTIONS BEYOND TOMORROW