Slide 1: Krones Preliminary Figures 2023
Krones Preliminary Figures 2023 Conference Call February 22, 2024 Christoph Klenk, CEO Uta Anders, CFO
Slide 2: Krones reports strong figures for full year 2023; targets for 2024
Krones reports strong figures for full year 2023; targets for 2024 represent a strong growth in revenues and a further growth in EBITDA margin Order intake in 2023 at Revenue growth in 2023 by EBITDA significantly Targets for 2023 are as €5.4bn as a result of strong 12.2% to €4.7bn and therefore inc
Slide 3: Krones highlights Q1 – Q4 2023
Krones highlights Q1 – Q4 2023 €5.38 billion +12.2% 9.7% +€13 million Order intake Revenue EBITDA margin Free cash flow w/o M&A (PY +€5.78 billion) €4,721 million (PY 8.9%) (PY +€398 million) 3 Krones Conference Call February 22, 2024
Slide 4: Order intake (€ million)
Order intake (€ million) − Market demand in the filling Order intake (€ million) and packaging industry for liquid food continues to be 5,783 very high +34.0% 5,377 -7.0% − Beside any seasonal effects Q4 4,316 1,183 order intake of €1.26bn was +30.5% 1,263 within the order level per quarter Q4 1,124
Slide 5: Order backlog (€ million)
Order backlog (€ million) − Order backlog at 31.12.2023 is at Order backlog (€ million) €4.1bn with a range until mid of 2025 4,122 +18.9% − With a book-to-bill ratio of 1.14x 3,466 the order backlog at 31.12.2023 is +83.1% 18.9% above the very high level at year end 2022 (€3.5bn; +83.1%) 1,893 − De
Slide 6: Development of order intake 2006 – 2023
Development of order intake [€ million] 2006 – 2023 5.783 5.377 +7,0% p.a. 4.316 3.957 4.084 3.787 3.441 3.307 3.040 3.189 2.721 2.809 2.514 2.300 2.326 2.194 1.967 1.916 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 The longterm view of order intake shows
Slide 7: Strong growth in North America and in APAC outperforming other regions
Strong growth in North America and in APAC outperforming other regions Altogether the revenue split shows a strong resilience Share of revenues (Q1 – Q4) Eastern Europe/ Europe Central Asia Prag 6.6% 5.6% 5.1% North and 31.2% 33.2% 28.3% Central America 2021 2022 2023 25.3% 21.9% 21.1% 2021 2022 202
Slide 8: Revenue development by quarter (€ million)
Revenue development by quarter (€ million) Continued strong revenue growth in FY 2023 4,721 (12.2%); the updated revenue guidance* of +12.2% 11%–13% in 2023 was fully achieved 4,209 1,235 +15.8% − Despite supply chain shortages for 3,634 1,165 electronic devices the revenue in 2023 +9.4% increased b
Slide 9: EBITDA and EBITDA margin strongly improved
EBITDA and EBITDA margin strongly improved EBITDA (€ million) (€ million and %) EBITDA margin in % 457.3 +22.5% EBITDA at €457m (+23%) with 103.2 125.0 EBITDA margin at 9.7% 373.3 − Under challenging conditions +19.4% EBITDA was significantly increased 100.0 312.6 103.2 by 23% and therefore more str
Slide 10: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) EBT (€ million) EBT margin in % EBT margin strongly increased in 2023 310.0 to 6.6% vs. 5.8% in 2022 +28.3% 58.9 − EBT also increased significantly and 75.1 is with €310m 28% above full year 242.1 2022 (€242m) +36.5% − Financial income includes - besid
Slide 11: Personnel and material expenses Q1 – Q4
Personnel and material expenses Q1 – Q4 (€ million and %) − Personnel cost ratio stabilized with Personnel costs Q1 – Q4 (€ million) Material costs Q1 – Q4 (€ million) 29.5% nearly on same level as last 2,382 year 2022 (29.8%) and is below 30%. − Due to higher growth in new 2,114 equipment business
Slide 12: Krones employees worldwide
Krones employees worldwide – Growth in Germany in 2023 (+5%) also includes hiring of temporary workers; a further growth in the RoW (+8%) mainly related to services and digitalization and M&A (Ampco Pumps) Total Germany RoW 18,513 Thereof KAG 17,164 16,303 10,130 10,654 9,821 7,859 8,375 6,482 8,608
Slide 13: Revenue and EBITDA per segment (1/3)
Revenue and EBITDA per segment (1/3) Filling and Packaging Technology Revenue development Q1 – Q4 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 – Q4 − Increase in revenue (+12.2%) is at same 3,925 level as of the group and at the upper end of the range of our new revenue 3,497 targ
Slide 14: Revenue and EBITDA per segment (2/3)
Revenue and EBITDA per segment (2/3) Process Technology − Revenues increased by 23% and is in line Revenue development Q1 – Q4 Segment EBITDA (€ million) and with the updated growth target* for full (€ million) EBITDA margin (%) Q1 – Q4 year 2023 (20% to 25%) − EBITDA margin with 7.7% reflects the 4
Slide 15: Revenue and EBITDA per segment (3/3)
Revenue and EBITDA per segment (3/3) Intralogistics Revenue development Q1 – Q4 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 – Q4 − Revenue in 2023 was flat in relation to prior year. Stronger focus in Q4 2023 on smaller projects with higher 345 343 margins 292 − EBITDA margin of
Slide 16: Krones financially very strong; resilient capital position
Krones financially very strong; resilient capital position of Krones to withstand volatile world economy developments − With €448m cash and €847m Liquidity reserves Equity (€ million) and equity ratio (in %) free credit lines Krones has a 31.12.2023 very strong financial position with €1.3bn 1,715 l
Slide 17: Working Capital (in %)
Working Capital (in %) Further decrease in Working Capital with an average of 17.8% vs. 19.0% Working Capital of revenue Part of Working Capital in % (%, average over four quarters) of revenue (last 12 months) − The receivables/POC increased by 2.0% relating to the revenues. In Euro amount the incre
Slide 18: Free cash flow Q1 – Q4
Free cash flow Q1 – Q4 With a strong cash flow in Q4 the free (€ million) 2023 2022 cash flow (w/o M&A) for 2023 was positive, this has to be seen in relation to Earnings before taxes (EBT) 310.5 242.1 the extraordinary strong free cash flow +/– Other non-cash changes +129.9 +189.8 in 2022 +/– Chang
Slide 19: Free cash flow
Free cash flow Free cash flow and cash conversion Free cash flow (without M&A) in € million rates of FY 2023 and FY 2022 must 398 be considered together − Free cash flow in 2023 is influenced by a further rising Working Capital based on stronger operative activities 221 − As consequence of the small
Slide 20: ROCE
ROCE − ROCE, as the third target figure, is at ROCE Q1 – Q4 2021 – 2023* in % 17.3% slightly above the expectations for FY 2023 (15% to 17%) and also better than 14.1% of full year 2022 17.3 − The positive development of the last years is mainly based on higher earnings 14.1 − This increase in earni
Slide 21: Netstal
Netstal 21 Krones Conference Call February 22, 2024
Slide 22: Netstal: Strategic Rationale
Netstal Strategic Rational Reduction of OPEX and reduction of CO² emissions in the beverage market Connection of injection molding and blow molding Connection recycling and injection molding Strengthening business opportunities in life science and food markets Supplier of injection molding mac
Slide 23: Netstal: Revenue distribution
Netstal: Revenue distribution Others Life Science PET Packaging Caps 23 Krones Conference Call February 22, 2024
Slide 24: Strategic rational: close the loop for circular economy
Strategic rational: close the loop for circular economy Krones offers a unique know-how for the closed loop for plastics 24 Krones Conference Call February 22, 2024
Slide 25: Outlook 2024
Outlook 2024 25 Krones Conference Call February 22, 2024
Slide 26: Krones Outlook 2024 – further growth and improvement of profitability
Krones Outlook 2024 – further growth and improvement of profitability; All targets including the imminent acquisition of Netstal 9% – 13% 9.8% – 10.3% 17% – 19% Revenue growth EBITDA margin ROCE Key assumptions: 1. No further escalation of Russia-Ukraine conflict and in Middle East 2. No geopolitica
Slide 27: Krones Outlook 2024 – Segment targets
Krones Outlook 2024 – Segment targets (including the imminent acquisition of Netstal in the core segment) Filling and Packaging Process Intralogistics Technology Technology Revenue growth 9% – 13% 15% – 20% 5% – 10% EBITDA margin 10.3% – 10.8% 8% – 9% 6% – 7% 27 Krones Conference Call February 22, 2
Slide 28: Key take aways
Key take aways 1. 2023 Krones has delivered a very good performance. With a book-to-bill ratio above 1x we have a very strong base for 2024 and 2025 2. Strong improvement in profitability, due to price setting, efficiency improvements and strong service business in all regions 3. After an excellent
Slide 29: Questions and Answers
Questions and Answers 29 Krones Conference Call February 22, 2024
Slide 30: Thank you for your attention!
Thank you for your attention! 30 Krones Conference Call February 22, 2024
Slide 31: Financial calendar 2024
Financial calendar 2024 May 3, 2024 Conference Call Group Quarterly statement for the period from 1 January to March 31, 2024 June 4, 2024 Annual General Meeting in Regensburg July 31, 2024 Conference Call Group Quarterly statement for the period from 1 January to June 30, 2024 November 5, 2024 Conf
Slide 32: 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 33: Solutions beyond tomorrow
SOLUTIONS BEYOND TOMORROW