Krones Ag · XETR:KRN
Krones — H1 2017 Earnings Presentation
24 slides from Krones's earnings presentation, Jul 20, 2017
Slide 1: First Half Year 2017 Conference Call
KRONES First Half Year 2017 Conference Call July 20, 2017
Slide 2: KRONES Highlights 1st HY 2017
2 ｜KRONES Conference Call July 20, 2017 KRONES Highlights 1st HY 2017 + 11.0% 1,779.3 € Mio. 1,775.2 Revenue (+13.8 %) € Mio. New orders 6.8% -126.7 Operating Free cash flow € Mio. (PY -155.5 Mio. €) 121.0 € Mio. EBT margin
Slide 3: Solid order intake
3 ｜KRONES Conference Call July 20, 2017 Solid order intake New orders by quarter (€ million) 3,441 3,189 +8 % +5 % 989 878 +13 % Q4 +4 % 787 850 1,779 +7 % +8 % +11 % Q3 780 903 737 +6 % +16 % Q2 +2 % 787 822 876 Q1 +7 % +7 % +4 % 2015 2016 2017 1,095 1,145 1,149 (30.06.) Orders on hand (€ million)
Slide 4: Krones growth continues
4 ｜KRONES Conference Call July 20, 2017 Krones growth continues Revenue development by quarter (€ million) 3,391 3,174 +7 % +7 % 1,011 903 +12 % Q4 +14 % 820 1,775 767 +7 % Q3 +14 % +5 % 876 765 788 Q2 +11 % +4 % +3 % 899 739 772 Q1 +17 % +5 % +4 % 2015 2016 2017
Slide 5: KRONES' revenue split remains constant
5 ｜KRONES Conference Call July 20, 2017 KRONES' revenue split remains constant Share of revenue (1st HY) CIS/Central Asia Europe 2015 2016 2017 China North America 2015 2016 2017 3.3 % 2.6 % 2.1 % 2015 2016 2017 2015 2016 2017 36.2 % 37.3 % 37.9 % 8.6 % 7.8 % 6.3 % 12.8 % 13.4 % 15.2 % Africa/Middle
Slide 6: EBT margin nearly unchanged
6 ｜KRONES Conference Call July 20, 2017 EBT margin nearly unchanged EBT by quarter (€ million) 237.6 223.3 +6 % +16 % 74.0 67.2 Q4 121.0 56.3 +13% 52.0 Q3 55.0 6.9 6.9 6.8 Q2 53.9 52.2 66.0 50.2 55.1 Q1 2015 2016 2017 EBT margin in % (1st HY)
Slide 7: Personnel and material cost
7 ｜KRONES Conference Call July 20, 2017 Personnel and material cost Personnel cost 1st HY (€ million) 540.1 468.9 496.0 30.7 31.8 31.5 2015 2016 2017 Personnel cost to total performance (%) Material cost 1st HY (€ million) 826.2 725.5 749.4 48.0 48.2 47.5 2015 2016 2017 Material cost to total perfor
Slide 8: KRONES continues to grow its workforce in Emerging Markets
8 ｜KRONES Conference Call July 20, 2017 KRONES continues to grow its workforce in Emerging Markets KRONES employee worldwide KRONES employee development in the Emerging Markets 14,794 14,443 Year South Africa Asia CIS/East China Total 13,346 America Europe 2015 519 376 502 147 451 1,995 31.12. 10,06
Slide 9: Product filling and decoration: Strong EBT margin
9 ｜KRONES Conference Call July 20, 2017 Product filling and decoration Strong EBT margin Revenue development 1st HY EBT development 1st HY MEDIUM-TERM TARGETS: (€ million) (€ million) 4 ‒ 6% 1,437 1,335 1,281 +8 % 118.1 +4 % 105.4 +12 % 98.4 +7 % Growth 8% EBT margin 8.2 7.7 7.9 2015 2016 2017 2015
Slide 10: Beverage production/process technology: Acquisitions contributed to growth
10 ｜KRONES Conference Call July 20, 2017 Beverage production/process technology Acquisitions contributed to growth Revenue development 1st HY EBT development 1st HY MEDIUM-TERM TARGETS: (€ million) (€ million) 8 ‒ 10 % 276 +74 % 2015 2016 2017 Growth 174 159 3.6 -9 % 4% 2.1 0.0 EBT margin -0.1 -0.9
Slide 11: Compact class: Stable margin
11 ｜KRONES Conference Call July 20, 2017 Compact class Stable margin Revenue development 1st HY EBT development 1st HY MEDIUM-TERM TARGETS: (€ million) (€ million) 4 ‒ 6% 66 62 -7 % +36 % 2015 2016 2017 49 3.3 3.0 -9 % Growth +57 % 2.1 5.0 4.9 5% 4.3 EBT margin 2015 2016 2017 EBT margin in %
Slide 12: Working Capital still too high
12 ｜KRONES Conference Call July 20, 2017 Working Capital still too high Working capital* in % ROCE* in % (1st HY) of revenue (1st HY) 17.0 16.3 26.3 15.6 25.5 24.5 2015 2016 2017 2015 2016 2017 *LTM (Last Twelve Months)
Slide 13: Krones improved free cash flow slightly despite higher capex and M&A
13 ｜KRONES Conference Call July 20, 2017 Krones improved free cash flow slightly despite higher capex and M&A 1st HY (€ million) 2017 2016 Earnings before taxes 121.0 107.3 +/– Non-cash expenses and income +22.8 +70.6 +/– Change in Working Capital -151.9 -201.9 +/– Other assets and liabilities -76.8
Slide 14: Robust capital structure
14 ｜KRONES Conference Call July 20, 2017 Robust capital structure Assets in € million Equity and liabilities in € million 3,071 3,071 2,921 Total 2,921 Total Property, plant 2,707 and equipment, 2,707 726 intangible assets, and 757 financial assets 1,226 646 73 1,241 Non-current assets Equity 87 1,1
Slide 15: These megatrends support our growth
15 ｜KRONES Conference Call July 20, 2017 These megatrends support our growth
Slide 16: How KRONES will achieve its growth targets
16 ｜KRONES Conference Call July 20, 2017 How KRONES will achieve its growth targets TARGETS Market growth 2020 2% 3% 2% 2% Revenue growth Not relevant Relevant for KRONES Product diversity M&A and new solutions 7% EBT margin 8% Working Capital 7% KRONES revenue growth 22%
Slide 17: Challenges for Krones
17 ｜KRONES Conference Call July 20, 2017 Challenges for Krones Cost pressures Demographic change Currency risk Protectionism Source: Statistisches Bundesamt (VGR, Bevölkerungsprognose), Economix
Slide 18: Expansion of Global footprint continues
18 ｜KRONES Conference Call July 20, 2017 Expansion of Global footprint continues Best Cost Country Production/Sourcing Global Engineering Use of cost advantages and Manufacturing in Eastern Europe Network Global Engineering Eastern New machine capability and Manufacturing Europe APAC Network Headqua
Slide 19: Our latest Acquisitions
19 ｜KRONES Conference Call July 20, 2017 Our latest Acquisitions Lifecycle Service & Process Intralogistics BPE Digitalization Sales technology
Slide 20: Krones targets 2017
20 ｜KRONES Conference Call July 20, 2017 Krones targets 2017 Revenue growth EBT margin Working Capital/Sales 4% 7.0% 27%
Slide 21: Krones targets 2020
21 ｜KRONES Conference Call July 20, 2017 Krones targets 2020 Annual revenue EBT margin Working Capital/Sales growth 7% 8% 22%
Slide 22: Thank you for your attention!
Slide 23: Financial calender 2017
23 ｜KRONES Conference Call July 20, 2017 Financial calender 2017 October 25, 2017 Conference Call Group Q3 2017 and Quarterly Statement as per September 30 Olaf Scholz Head of Investor Relations KRONES AG Böhmerwaldstrasse 5 93073 Neutraubling Germany Phone +49 9401 70-1169 Fax +49 9401 70-911169
Slide 24: Disclaimer
24 ｜KRONES Conference Call July 20, 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 forw