Krones Ag · XETR:KRN
Krones — 9M 2018 Earnings Presentation
19 slides from Krones's earnings presentation, Oct 25, 2018
Slide 1: Krones Conference Call January – September 2018
KRONES January – September 2018 Conference Call October 25, 2018
Slide 2: Krones Highlights Q1 – Q3 2018
2 ｜KRONES Conference Call October 25, 2018 Krones Highlights Q1 – Q3 2018 + 9% 2,940.0 € Mio. 2,692.8 Revenue (+7%) € Mio. New orders Operating free cash flow -130.5 5.2% € Mio. (PY -209.1 € Mio.) 139.4 € Mio. EBT margin
Slide 3: Strong order intake with 9% growth
3 ｜KRONES Conference Call October 25, 2018 Strong order intake with 9% growth New orders by quarter (€ million) 3,787 +10% 3,441 +8% 1,090 2,940 989 +10% +9% +13% Q4 925 918 +1% 850 +8% +8% Q3 1,022 904 +13% 780 +16% Q2 +6% 993 875 +13% 822 Q1 +6% +4% 2016 2017 2018 1,145 1,240 1,487 (Sep 30) Orders
Slide 4: Krones further increases revenue
4 ｜KRONES Conference Call October 25, 2018 Krones further increases revenue Revenue development by quarter (€ million) 3,691 +9% 3,391 +7% 1,182 +17% 2,693 1,011 +12% +7% Q4 734 902 820 -11% +22% Q3 +7% 876 899 788 +11% +3% Q2 +3% 899 892 Q1 772 +17% -1% +4% 2016 2017 2018
Slide 5: Krones' revenue is well distributed over the world
5 ｜KRONES Conference Call October 25, 2018 Krones' revenue is well distributed over the world Share of revenue (Q1 – Q3) North America CIS/Central Asia 2017 2018 2017 2018 15.0% 14.6% 2.0% 2.3% South America China 2017 2018 2017 2018 11.2% 12.8% 6.0% 6.8% Europe Asia/Pacific 2017 2018 2017 2018 36.4
Slide 6: Extraordinary expenses impact profitability in Q3
6 ｜KRONES Conference Call October 25, 2018 Extraordinary expenses impact profitability in Q3 EBT by quarter (€ million) EBT margin by quarter (%) 258.8 237.6 +9% +6% 8.0% 7.7% 90.8 7.5%2017 7.3% 7.3% Q4 74.0 7.0%2016 7.1% 139.4 6.9% 47.0 -17% 6.5% Q3 56.3 6.6% 26.7 2018 6.3% 6.4% 6.3% 6.0% 55.0 56.5
Slide 7: Material and personnel cost
7 ｜KRONES Conference Call October 25, 2018 Material and personnel cost Material cost Q1 – Q3 (€ million) 1,384.2 1,109.9 1,199.5 51.0 48.1 48.2 2016 2017 2018 Material cost to total performance (%) Personnel cost Q1 – Q3 (€ million) 848.3 786.5 727.2 31.6 31.5 31.2 2016 2017 2018 Personnel cost to t
Slide 8: Krones continues to grow its workforce in Emerging Markets
8 ｜KRONES Conference Call October 25, 2018 Krones continues to grow its workforce in Emerging Markets KRONES employee worldwide KRONES employee development in the Emerging Markets 15,949 Year South Africa Asia CIS/East China Total 15,299 America Europe 14,443 2016 549 386 602 155 508 2,200 31.12. 20
Slide 9: Product filling and decoration: Sales of new machinery grew disproportional
9 ｜KRONES Conference Call October 25, 2018 Product filling and decoration Sales of new machinery grew disproportional Revenue development Q1 – Q3 EBT development Q1 – Q3 MEDIUM-TERM TARGETS: (€ million) (€ million) 2,271 4 ‒ 6% 2,129* 2,140* + 6% + 1% 174.8* 163.0* +7 % - 4% 140.9 -19 % Growth 7.7%
Slide 10: Beverage production/process technology: Strong growth with a positive EBT in Q3
10 ｜KRONES Conference Call October 25, 2018 Beverage production/process technology Strong growth with a positive EBT in Q3 Revenue development Q1 – Q3 EBT development Q1 – Q3 MEDIUM-TERM TARGETS: (€ million) (€ million) 8 ‒ 10 % 421 369 +14 % +46 % 252 -12 % 2016 +0.6 2017 -6.8 2018 -1.5 Growth +0.2
Slide 11: Working Capital increasing
11 ｜KRONES Conference Call October 25, 2018 Working Capital increasing Working capital* in % ROCE* in % (Q1-Q3) of revenue (Q1-Q3) 28.8 26.3 26.5 15.5 14.6 12.3 2016 2017 2018 2016 2017 2018 *LTM (Last Twelve Months)
Slide 12: Krones significantly improved cash flow from operating activities and free cash flow
12 ｜KRONES Conference Call October 25, 2018 Krones significantly improved cash flow from operating activities and free cash flow Q1 - Q3 (€ million) 2018 2017 Earnings before taxes 139.4 168.0 +/– Non-cash changes +49.3 +35.1 +/– Change in Working Capital -141.0 -228.6 +/– Other assets and liabiliti
Slide 13: EBT and EBITDA
13 ｜KRONES Conference Call October 25, 2018 EBT and EBITDA EBITDA as a key figure is independent from M&A and PPA transactions to better 305.3 320.8 reflect the cash relevant performance 340.2 9.6% 9.5% 9.2% Common key figure at the capital market, 206.1 223.3 237.6 258.8 making comparisons in t
Slide 14: Internationalization of Process Technology
14 ｜KRONES Conference Call October 25, 2018 Internationalization of Process Technology Geographically unbalanced ratio: sales vs. employees Employee split Process Technology 3% 3rd Country 21% 97% Germany 79% Dec 2015 Dec 2017 Sales split processing 9% 21% Germany 79% 3rd Country 91% Focus areas in
Slide 15: Acquisitions Xiantong and Sprinkman
15 ｜KRONES Conference Call October 25, 2018 Acquisitions Xiantong and Sprinkman Krones strengthens Process Technology Krones strengthens Process Technology in China in the US Asset deal as per 1st September 2018 Asset deal as per 2nd October 2018 Approx. 170 employees Approx. 125 employees
Slide 16: Krones revised targets 2018
16 ｜KRONES Conference Call October 25, 2018 Krones revised targets 2018 Revenue growth EBT margin Working Capital/ Revenue 4% 6.5% 28%
Slide 17: Thank you for your attention!
Slide 18: Financial calendar 2019
18 ｜KRONES Conference Call October 25, 2018 Financial calendar 2019 February 21, 2019 Conference Call Preliminary Figures 2018 March 21, 2019 Annual Report 2018 April 30, 2019 Conference Call Group Q1 2019 and Quarterly Statement as per March 31 June 05, 2019 Annual General Meeting Olaf Scholz Head
Slide 19: Disclaimer
19 ｜KRONES Conference Call October 25, 2018 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