Krones Ag · XETR:KRN
Krones — 9M 2015 Earnings Presentation
22 slides from Krones's earnings presentation, Oct 22, 2015
Slide 1: Conference Call January – September 2015
KRONES Conference Call January – September 2015 Page 1 | KRONES Conference Call October 22, 2015
Slide 2: Krones continues profitable growth trend
Krones continues profitable growth trend Revenue climbed 4.9% to €2,270.7 million. New orders increased 5.2% to €2,311.3 million for the period from January to September. EBT margin improved from 6.3% to 6.9% thanks to the Value strategy programme. Krones confirms growth and earnings targets for 201
Slide 3: New orders rose 5.2% in the first three quarters
New orders rose 5.2% in the first three quarters New orders Q1 – Q3 (€ million) New orders by quarter (€ million) 3,040 2,809 Q4 842.2 2,721 2,311 +8.2% (+19.5%) 2,514 +3.2% 2,198 2,311 2,104 +8.2% (+5.1%) 1,968 Q4 705.0 1,893 (–6.5%) Q3 787.2 (+7.0%) Q3 735.9 Q3 721.0 (+2.1%) (+12.7%) 737.1 Q2 Q2 7
Slide 4: Revenue rose 4.9%
Revenue rose 4.9% Revenue development Q1 – Q3 (€ million) Revenue development by quarter (€ million) 2,953 2,816 2,664 +4.9% Q4 789.0 2,480 +5.7% (+0.8%) +7.4% Q4 782.8 2,271 2,271 (+2.1%) (+4.9%) 2,164 2,033 1,898 Q3 728.9 1,815 (+11.2%) Q3 655.4 Q3 767.0 (+7.8%) (+5.2%) Q2 694.1 Q2 732.5 Q2 764.8
Slide 5: Revenue per region in Q1 – Q3 2015
Revenue per region in Q1 – Q3 2015 CIS/Central Asia 2014 2015 4.1% 2.9% North America Europe 2014 2015 2014 2015 China 8.7% 12.9% 31.8% 37.1% 2014 2015 9.9% 8.0% Africa/Middle East South America 2014 2015 Asia/Pacific 2014 2015 12.6% 15.4% 2014 2015 14.0% 9.7% 18.9% 14.0% Share of emerging markets o
Slide 6: Strong increase of EBT margin based on the performance improvement
Strong increase of EBT margin based on the performance improvement EBT Q1 – Q3 (€ million) Personnel costs Q1 – Q3 (€ million) 647.0 695.2 581.8 608.9 156.1 136.7 +14% 30.9 30.3 117.1 30.1 +17% 29.9 +132% 2012 2013 2014 2015 6.9 Personnel costs to total performance (%) 6.3 5.8 Material costs Q1 – Q3
Slide 7: Machines and lines for product filling and decoration
Machines and lines for product filling and decoration Page 7 | KRONES Conference Call October 22, 2015
Slide 8: Product filling and decoration: Further improvement of profitability
Product filling and decoration: Further improvement of profitability Revenue development Q1 – Q3 EBT development Q1 – Q3 (€ million) (€ million) Regionalization of the LCS business 1,866 +2% 1,906 +12% Cost reduction program to compensate 1,666 145.6 cost increases +3% 141.0 +21% 116.8 Expansion of
Slide 9: Machines and lines for beverage production / process technology
Machines and lines for beverage production / process technology Page 9 | KRONES Conference Call October 22, 2015
Slide 10: Beverage production/process technology: volatile sales development in the quarters
Beverage production/process technology: volatile sales development in the quarters Revenue development Q1 – Q3 EBT development Q1 – Q3 (€ million) (€ million) Expansion of the component business 290.1 286.9 Strengthening the product portfolio -25% for carbonated softdrink applications and +33% 2013
Slide 11: Machines and lines for the compact class
Machines and lines for the compact class Page 11 | KRONES Conference Call October 22, 2015
Slide 12: Segment for the low output range: Successful restructuring, sustainable margin situation
Segment for the low output range: Successful restructuring, sustainable margin situation Revenue development Q1 – Q3 EBT development Q1 – Q3 (€ million) (€ million) Restructering program in the final stage. Operating result is in proving profitability 82.0 76.8 78.3 2013 2014 2015 -5% Strengthening
Slide 13: ROCE increases as planned
ROCE increases as planned Working capital* Q1 – Q3 (%) of revenue ROCE* Q1 – Q3 (%) 17.0 16.1 25.9 15.3 23.7 24.5 24.5 6.7 2012 2013 2014 2015 2012 2013 2014 2015 *LTM (Last twelve months) *LTM (Last twelve months) Page 13 | KRONES Conference Call October 22, 2015
Slide 14: Free cash flow decreased
Free cash flow decreased (€ million) Q1 – Q3 2015 Q1 – Q3 2014 Earnings before taxes 156.1 136.7 +/– non-cash expenses and income +83.4 +128.9 +/– change in Working Capital –189.0 –161.1 +/– other (mainly tax payments) –29.5 –24.6 Cash flow from operating activities +21.0 +79.9 +/– Capex, intangible
Slide 15: Equity rose over 1 billion €, ratio at 41%
Equity rose over 1 billion €, ratio at 41% 2,525 Total 2,525 Total 2,428 Property, plant 2,428 and equipment, 2,238 intangible assets, 2,238 628 and financial assets 624 1,042 605 Non-current 988 Equity 50 assets 48 953 36 Non-current 650 744 13 21 Inventories liabilities 641 29 442 Provisions 439 3
Slide 16: Krones raises EBT margin target for 2015 from 6.8% to 7.0%
Krones raises EBT margin target for 2015 from 6.8% to 7.0% Target: Target: Target: Revenue growth EBT margin ROCE + 4% 7% 17% Q1 - Q3 2015: Q1 - Q3 2015: Q1 - Q3 2015: 4.9% 6.9% 17.0% ✓ ✓ ✓ Page 16 | KRONES Conference Call October 22, 2015
Slide 17: Merger between AB InBev – SAB Miller
Merger between AB InBev – SAB Miller Sales split Threats − Substantially reduced capital investment levels in the next few SAB Miller years − Pressure on prices due to purchasing power − Concessions with regard to payment terms AB InBev 2012 2013 2014 2015e Opportunities − Global package deals are a
Slide 18: World Economic Outlook
World Economic Outlook Real GDP growth 2015 Real GDP growth % yoy 7 2014 2015 2016 6 5 4 3 2 1 0 -1 -2 -3 World USA Euro area Japan UK LatAm CIS Emerging & Middle East, Sub- Emerging & Developing North Africa, Saharan Developing Asia Europe Afghanistan, Africa Source: International Monetary Fund and
Slide 19: Future Trends
Future Trends Growth Financials in China emerging markets USA, Asia and Africa Increasing Risks Slowing Growth − USA, Asia and Africa form the − Consistently low prices of − Risks are increasing with a hubs of global growth crude oil and commodities slowing economic growth − Different growth levels
Slide 20: Page 20 | KRONES Conference Call October 22, 2015
Page 20 | KRONES Conference Call October 22, 2015
Slide 21: Financial Calender 2016
Financial Calender 2016 28.04.2016 Interim Report as per March 31st 2016 and Annual Report 2015 Conference Call concern Q1 2016 15.06.2016 Annual General Meeting 21.07.2016 Interim Report as per June 30th 2016 Conference Call concern 1HY 2016 Olaf Scholz 26.10.2016 Interim Report as per September 30
Slide 22: 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