Krones Ag · XETR:KRN
Krones — Q1 2022 Earnings Presentation
27 slides from Krones's earnings presentation, May 6, 2022
Slide 1: Krones Q1 2022 Conference Call
Krones Q1 2022 Conference Call 06 May 2022 Christoph Klenk, CEO Norbert Broger, CFO
Slide 2: Despite several challenges Krones had a very good start in 2022
2 ｜KRONES Conference Call May 06, 2022 Despite several challenges Krones had a very good start in 2022 Summary Q1 2022 Customers’ demand remain Revenue in Q1 2022 of Moderate increase in Despite various global very high and results in €987 million up by 12.9% to EBITDA margin of 8.8% challenges, Kro
Slide 3: Krones highlights Q1 2022
3 ｜KRONES Conference Call May 06, 2022 Krones highlights Q1 2022 Order intake Revenue EBITDA margin Free cash flow +45.4% +12.9% 8.8% +€77 million €1.55 billion €987 million (PY 8.7%) (PY +€30 million)
Slide 4: Q1 Order intake and orders on hand
4 ｜KRONES Conference Call May 06, 2022 Q1 Order intake and orders on hand (€ million) Very strong growth in Q1 2022 Order intake 4,316 reflects the actual market Orders on hand strength +30.5% 1,124 ▪ After a record order intake 2021 3,307 the order intake in Q1 2022 -19.0% again increased significa
Slide 5: Revenue development by quarter
5 ｜KRONES Conference Call May 06, 2022 Revenue development by quarter (€ million) 3,634 Revenue growth at Krones 3,323 +9.4% fully in line with target -16.1% 991 expectations 874 Q4 ▪ Revenue was increased in Q1 2022 by 12.9% compared to Q1 prior year and includes a significantly higher growth in 92
Slide 6: Revenue split reflects the world-wide business activity of Krones
6 ｜KRONES Conference Call May 06, 2022 Revenue split reflects the world-wide business activity of Krones with a stabilisation of the strong position in industrial countries Share of sales (Q1) Eastern Europe/ Russia/Central Asia 2020 2021 2022 North and Europe 9.7% 7.3% 6.3% Central America 2020 202
Slide 7: EBITDA and EBITDA margin by quarter
7 ｜KRONES Conference Call May 06, 2022 EBITDA and EBITDA margin by quarter (€ million and %) 312.6 EBITDA at €87 million and +134.7% EBITDA (€ million) EBITDA margin at 8.8% 100.0 EBITDA margin in % ▪ EBITDA margin slightly above Q4 the margin of Q1 2021. Prior year margin was positively influenced
Slide 8: EBT and EBT margin by quarter
8 ｜KRONES Conference Call May 06, 2022 EBT and EBT margin by quarter (€ million and %) 177.3 EBT at €54,7 million and EBT 58.9 EBT (€ million) margin increased to 5.5% EBT margin in % Q4 ▪ EBT increased to Q1 2021 by 23% to €54,7 million and EBT-margin at 5.5% vs. 5.1% in Q1 prior year 42.7 ▪ EBT ma
Slide 9: Personnel and material expenses Q1
9 ｜KRONES Conference Call May 06, 2022 Personnel and material expenses Q1 (€ million and %) ▪ Personnel cost ratio with 31.6% Personnel cost Q1 (€ million) Material cost Q1 (€ million) clearly better than last year. Positive effects from the fully 322 317 implemented structural measures 303 are comp
Slide 10: Krones employees worldwide
10 ｜KRONES Conference Call May 06, 2022 Krones employees worldwide – stable employee situation in German after prior years capacity adjustment programs Total Germany RoW 16,736 16,303 16,386 10,364 9,821 9,829 6,372 6,482 6,557 31.12.2020 31.12.2021 31.03.2022
Slide 11: Working Capital Q1
11 ｜KRONES Conference Call May 06, 2022 Working Capital Q1 (in %) Strong decrease in Working Working Capital of revenue Q1 Part of Working Capital in % Capital in % of sales with 23.0% (%, average over four quarters) of revenue (last 12 months) vs. Q1 prior year and Q1 2020 Receivables ▪ Based on hi
Slide 12: ROCE
12 ｜KRONES Conference Call May 06, 2022 ROCE ▪ ROCE, as the new third target ROCE Q1 2020 – 2022* in % figure is with 11.7% also fully in line with expectations for FY 2022 (10% to 12%) ▪ The increase in 2022 vs. 2021 11.7 based on higher earnings and better working capital, whereas 10.8 the increas
Slide 13: Revenue and EBITDA per segment: Filling and Packaging technology
13 ｜KRONES Conference Call May 06, 2022 Revenue and EBITDA per segment Filling and Packaging technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 ▪ Increase in revenue nearly on group level (+13%) – driven 825 primarily by new equipment sales 816 ▪ Positi
Slide 14: Revenue and EBITDA per segment: Process technology
14 ｜KRONES Conference Call May 06, 2022 Revenue and EBITDA per segment Process technology Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 ▪ Revenues has increased vs. prior year by 16.2% ▪ Positive EBITDA margin in Process 98 technology of 3.5% mainly based 3.4
Slide 15: Revenue and EBITDA per segment: Intralogistics
15 ｜KRONES Conference Call May 06, 2022 Revenue and EBITDA per segment Intralogistics Revenue development Q1 Segment EBITDA (€ million) and (€ million) EBITDA margin (%) Q1 ▪ Increase in revenue +6.7% in Q1 2022 vs. prior year, after a strong 64 revenue recovery in Q1 2021 60 (+53%) vs. the revenue
Slide 16: Krones financially very strong with highest net cash in history
16 ｜KRONES Conference Call May 06, 2022 Krones financially very strong with highest net cash in history Net cash, free credit lines and high equity ratio in Q1 2022 Liquidity reserves Q1 2022 > €1.4bn Equity (€ million) and equity ratio (in %) Used credit lines €5m 1,453 1,392 1,200 Cash €453m Total
Slide 17: Free cash flow Q1
17 ｜KRONES Conference Call May 06, 2022 Free cash flow Q1 Free cash flow with €77 million (€ million) 2022 2021 more than doubled vs. Q1 prior year Earnings before taxes (EBT) 54.7 44.6 (€ 30 million) +/– Other non-cash changes +95.9 +127.4 ▪ Operating activities with €108 million +/– Change in Work
Slide 18: Cashflow and cash conversion rate
18 ｜KRONES Conference Call May 06, 2022 Cashflow and cash conversion rate Free cashflow increased and again on Free cashflow Q1 (without M&A) Cash conversion rate Q1 a high level, therefore cash conversion in € million (FCF/net income* in %) rate significantly improving 77 ▪ Cash conversion rate dou
Slide 19: Ukraine – Russia conflict; minor direct impact on Krones
19 ｜KRONES Conference Call May 06, 2022 Ukraine – Russia conflict; from an economic view a minor direct impact on Krones business ▪ Krones revenue impact with Russia, Ukraine and Belarus traditionally around 1 – 1.5% of total group revenue ▪ No production of Krones is located in Ukraine or Russia ▪
Slide 20: Additional Challenge: Covid-19 shutdown Shanghai/China
20 ｜KRONES Conference Call May 06, 2022 Additional Challenge: Covid-19 shutdown Shanghai/China Supply from and into China under stress; indirect impact on our suppliers in Europe unclear Direct impact Krones Indirect impact Krones ▪ Partial lockdown of our Taicang plant ▪ Impacts on our suppliers di
Slide 21: Outlook
Outlook 2022
Slide 22: Krones Outlook 2022 – a strong confirmation despite challenging times
22 ｜KRONES Conference Call May 06, 2022 Krones Outlook 2022 – a strong confirmation despite challenging times Global supply chain shortages and interruptions, strong inflation in many Kernaussage countries, political risks in Europe and other parts of the world as well as remaining pandemic uncertai
Slide 23: Key take aways
23 ｜KRONES Conference Call May 06, 2022 Key take aways 1. Record order intake and order backlog – good base for 2022 and 2023 2. Revenues recovering and capacity utilization improving 3. Strong improvement in profitability, due to efficiency improvement measures and strong service business in all re
Slide 24: Questions and Answers
Questions and Answers 2
Slide 25: Thank you for your attention!
Thank you for your attention!
Slide 26: Financial calendar 2022
26 ｜KRONES Conference Call May 06, 2022 Financial calendar 2022 May 31, 2022 Annual General Meeting August 2, 2022 Conference Call Group Quarterly statement for the period from 1 January to June 30, 2022 September 15, 2022 Capital Market Day at drinktec 2022 in Munich Olaf Scholz Head of Investor Re
Slide 27: Disclaimer
27 ｜KRONES Conference Call May 06, 2022 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 forwa