Krones Ag · XETR:KRN
Krones — FY2014 and Q1 2015 Earnings Presentation
26 slides from Krones's earnings presentation, Apr 30, 2015
Slide 1: KRONES Conference Call FY 2014 and Q1 2015
KRONES Conference Call FY 2014 and Q1 2015 Page 1 | KRONES Conference Call April 30, 2015
Slide 2: Financials 2014
Financials 2014 Page 2 | KRONES Conference Call April 30, 2015
Slide 3: Krones reached its targets for 2014 and is optimistic for 2015
Krones reached its targets for 2014 and is optimistic for 2015 Revenue rose 4.9 % in 2014 to €2.95 billion. Profitability, measured as the EBT margin, improved from 6.0 % to 6.5 %. Dividend for 2014 to increase over previous year’s regular dividend, from €1.00 to €1.25 per share. For 2015, Krones is
Slide 4: Preliminary figures 2014 confirmed
Preliminiary figures 2014 confirmed 2014 2013 2012 2011 1 Revenue (€ billion) 2.95 (+5 %) 2.82 (+6 %) 2.66 (+7 %) 2.48 (+14 %) 2 EBT (€ million) 192 (+13 %) 170 (+72 %) 99 (+32 %) 75 (+6 %) 3 Net income (after tax) (€ million) 136 (+14 %) 119 (+75 %) 68 (+55 %) 44 (-14 %) 4 EBT-Margin (%) 6.5 6.0 3.
Slide 5: Krones is on growth track for 2014
Krones is on growth track for 2014 Revenue development (€ million) Targets 2014 +4.9 % 2,953 Growth 4% +5.7 % 2,816 EBT-Margin by 6.2 % 2,664 2,480 +7.4 % ROCE > 16 % Q4 789.0 Q4 782.8 (+0.8 %) (+2.1 %) 6.5 Achieved targets 2014 Growth 4.9 % 6.0 Q3 728.9 EBT-Margin 6.5 % Q3 655.4 (+7.8 %)
Slide 6: Krones increases EBT disproportionate
Krones increases EBT disproportionate EBT (€ million) EBT development segments (€ million) 174.5 193.2 Machines and lines for product filling 7.5 7.7 Return on 191.8 sales (%) and decoration 13.1 % 169.7 2013 2014 6.5 3.3 +71.2 % 6.0 Return on Machines and lines sales (%) for beverage Production / -
Slide 7: Population growth is driving demand for packaged beverages
Population growth is driving demand for packaged beverages CIS/Central Asia 0.3* Beverage consumption Europe 0.5* North America 0.5* Beverage consumption Beverage consumption China 1.4* Beverage consumption Africa/Middle East 1.5* Beverage consumption South America 0.6* Beverage consumptio
Slide 8: Q1 2015
Q1 2015 Page 8 | KRONES Conference Call April 30, 2015
Slide 9: Krones continues profitable growth trend
Krones continues profitable growth trend Revenue rose 5.1 % to €738.9 million in the first quarter 2015 New orders at Krones were up 6.5 % to €787.0 million. Profitability improved further. EBT margin increased from 6.1 % to 6.8 %. Krones is expecting 4 % revenue growth and an EBT margin of 6.8 % fo
Slide 10: New orders rose 6.5 % in Q1 2015
New orders rose 6.5 % in Q1 2015 New orders Q1 (€ million) New orders by quarter (€ million) 3,040 787 2,809 739 2,721 +8.2 % +3.2 % 685 2,514 Q4 842 660 +8.2 % (+19 %) 629 Q4 705 (–6 %) Q3 736 Q3 721 (+2 %) (+13 %) Q2 723 Q2 698 (+6 %) (–4 %) Q1 685 Q1 739 Q1 787 (+4 %) (+8 %) (+7 %) 2011 2012 2013
Slide 11: Revenue rose 5.1 % in Q1 2015
Revenue rose 5.1 % in Q1 2015 Revenue development Q1 (€ million) Revenue development by quarter (€ million) 2,953 2,816 2,664 +4.9 % +5.7 % 739 2,480 Q4 789.0 703 +7.4 % Q4 782.8 (+0.8 %) 683 649 (+2.1 %) 607 Q3 728.9 Q3 655.4 (+11.2 %) (+7.8 %) Q2 694.1 Q2 732.5 (+8.3 %) (+5.5 %) Q1 683.4 Q1 703.0
Slide 12: Revenue per region in Q1 2015
Revenue per region in Q1 2015 CIS/Central Asia 2014 2015 8.3 % 3.9 % North America Europe 2014 2015 2014 2015 China 7.4 % 14.5 % 37.7 % 39.5 % 2014 2015 5.3 % 8.8 % Africa/Middle East South America 2014 2015 Asia/Pacific 2014 2015 6.8 % 14.0 % 2014 2015 18.4 % 8.5 % 16.1 % 10.8 % Share of Emerging M
Slide 13: Strong increase of EBT margin based on the performance improvement
Strong increase of EBT margin based on the performance improvement EBT Q1 (€ million) Personnel costs Q1 (€ million) 220.0 232.2 206.0 210.6 50.2 16.5 % 32.7 43.1 31.9 31.0 38.9 +11 % 29.3 +20 % 32.5 2012 2013 2014 2015 6.5 Personnel costs to total performance (%) 6.1 Material costs Q1 (€ million) 5
Slide 14: Machines and lines for product filling and decoration
Machines and lines for product filling and decoration Page 14 | KRONES Conference Call April 30, 2015
Slide 15: Product filling and decoration: Improvement of profitability
Product filling and decoration: Improvement of profitability Revenue development Q1 EBT development Q1 (€ million) (€ million) Regionalization of the LCS business 647 +12.8 % 575 574 48.1 -2 % Cost reduction program to compensate +16.2 % cost increases 41.4 39.6 +5 % Expansion of modular production
Slide 16: Machines and lines for beverage production / process technology
Machines and lines for beverage production / process technology Page 16 | KRONES Conference Call April 30, 2015
Slide 17: Beverage production/process technology: volatile sales development
Beverage production/process technology: volatile sales development Revenue development Q1 EBT development Q1 (€ million) (€ million) Expansion of the component business (operative start of Evoguard in 2014 and acquisition of HST homogenizers) 103 +26 % 2013 2014 2015 82 Strengthening the product por
Slide 18: Machines and lines for the low output range
Machines and lines for the low output range Page 18 | KRONES Conference Call April 30, 2015
Slide 19: Segment for the low output range: Successful restructuring
Segment for the low output range: Successful restructuring Revenue development Q1 EBT development Q1 Restructering program in the final stage. (€ million) (€ million) Operating result is proving profitability 26 26 2013 2014 2015 -0.8 % -12.3 % Strengthening product portfolio of 23 1.0 Kosme Italy i
Slide 20: ROCE increases as planned
ROCE increases as planned Working capital* Q1 (%) of revenue ROCE* Q1 (%) 16.5 26.3 15.1 15.4 24.7 24.8 24.1 13.5 2012 2013 2014 2015 2012 2013 2014 2015 *LTM (Last twelve months) *LTM (Last twelve months) Page 20 | KRONES Conference Call April 30, 2015
Slide 21: Free cash flow in line with expectations
Free cash flow in line with expectations (€ million) Q1 2015 Q1 2014 Earnings before taxes 50.2 43.1 +/– non-cash expenses and income +76.7 + 76.1 +/– change in Working Capital -151.7 –135.9 +/– other (mainly tax payments) -12.0 –10.9 Cash flow from operating activities -36.8 -27.6 +/– Capex, mainly
Slide 22: Equity rose over 1 billion €
Equity rose over 1 billion € 2,575 Total 2,575 Total 2,428 Property, plant 2,428 and equipment, 2,238 intangible assets, 2,238 628 and financial assets 624 Non-current 1,037 605 41 988 Equity assets 48 953 36 685 Non-current 650 Inventories 13 10 liabilities 641 29 Provisions 439 446 348 Bank loans
Slide 23: Q1 2015 in line with targets
Q1 2015 in line with targets Target: Target: Target: Revenue growth EBT margin ROCE +4% 6.8 % 17 % Q1 2015: Q1 2015: Q1 2015: 5.1 % 6.8 % 16.5 % ✓ ✓ ✓ Page 23 | KRONES Conference Call April 30, 2015
Slide 24: Page 24 | KRONES Conference Call April 30, 2015
Page 24 | KRONES Conference Call April 30, 2015
Slide 25: Financial Calendar 2015
Financial Calender 2015 17.06.2015 Annual General Meeting 23.07.2015 Conference Call concern Q2 2015 23.07.2015 Interim Report as per June 30 22.10.2015 Conference Call concern Q3 2015 22.10.2015 Interim Report as per September 30 Olaf Scholz Head of Investor Relations KRONES AG Böhmerwaldstraße 5 9
Slide 26: 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