Krones Ag · XETR:KRN
Krones — H1 2016 Earnings Presentation
19 slides from Krones's earnings presentation, Jul 21, 2016
Slide 1: KRONES First Half Year 2016 Conference Call
KRONES First Half Year 2016 Conference Call July 21, 2016
Slide 2: KRONES increased revenue and earnings in the first half of 2016
2 ｜KRONES Conference Call July 21, 2016 KRONES increased revenue and earnings in the first half of 2016 Revenue in the period from January to June 2016 grew 3.8 % to €1,560.3 million. New orders improved 5.1 % to €1,602.4 million. Earnings before taxes (EBT) climbed 3.1 %. The EBT margin was stable
Slide 3: Orders received rose 5.1 % in 1st HY
3 ｜KRONES Conference Call July 21, 2016 Orders received rose 5.1 % in 1st HY New orders by quarter in € million Trend by region 3,189 3,040 +5 % Central Europe 2,809 +8 % 2,721 +3 % Western Europe 878 +4 % Eastern Europe 842 705 CIS/Central Asia 753 787 Middle East/Africa +7 % 1,602 736 Ch
Slide 4: Revenue increased in line with expectations
4 ｜KRONES Conference Call July 21, 2016 Revenue increased in line with expectations Revenue development by quarter in € million Share of revenue in 1st HY 3,174 2,953 +7 % CIS/Central Asia 2,816 +5 % 2,664 903 2015 2016 +6 % +14 % 3.3 % 2.6 % North America Europe 789 2015 2016 2015 2016 783 China 76
Slide 5: EBT margin stable
5 ｜KRONES Conference Call July 21, 2016 EBT margin stable EBT 1st HY (€ million) Personnel cost 1st HY (€ million) 468.9 496.0 414.1 434.0 107.3 104.1 +3 % 89.4 +16 % 30.1 30.9 30.7 31.8 79.7 +12 % 2013 2014 2015 2016 Personnel cost to total performance (%) 6.9 6.9 Material cost 1st HY (€ million) 7
Slide 6: Machines and lines for product filling and decoration
6 ｜KRONES Conference Call July 21, 2016 Machines and lines for product filling and decoration
Slide 7: Product filling and decoration: margin increased slightly
7 ｜KRONES Conference Call July 21, 2016 Product filling and decoration: margin increased slightly Revenue development 1st HY EBT development 1st HY (€ million) (€ million) Regionalization of the LCS business 1,280. 1,335.1 9 +4 % 105.4 1,208. 98.4 +7 % Consistent modular product structure as basis f
Slide 8: Machines and lines for beverage production/process technology
8 ｜KRONES Conference Call July 21, 2016 Machines and lines for beverage production/ process technology
Slide 9: Beverage production/process technology: behind expectation
9 ｜KRONES Conference Call July 21, 2016 Beverage production/process technology: behind expectation Revenue development 1st HY EBT development 1st HY (€ million) (€ million) Expansion of the component business 173.4 +1 % 174.2 Strengthening the product portfolio for carbonated soft drinks -9 % 159.1
Slide 10: Machines and lines for the compact class
10 ｜KRONES Conference Call July 21, 2016 Machines and lines for the compact class
Slide 11: Compact class: further profitability
11 ｜KRONES Conference Call July 21, 2016 Compact class: further profitability Revenue development 1st HY EBT development 1st HY (€ million) (€ million) 66.1 +36 % Restructuring program finished Set-up for profitable growth 53.2 -9 % 2014 2015 2016 48.6 3.3 Focus on line business and blowing, filling
Slide 12: Working Capital target missed
12 ｜KRONES Conference Call July 21, 2016 Working Capital target missed Working Capital* in % of revenue (1st HY) ROCE* in % (1st HY) 17.0 15.6 15.9 25.5 15.6 23.9 24.5 24.5 2013 2014 2015 2016 2013 2014 2015 2016 *LTM (Last Twelve Months) *LTM (Last Twelve Months)
Slide 13: High Working Capital caused negative Free cash flow
13 ｜KRONES Conference Call July 21, 2016 High Working Capital caused negative Free cash flow (€ million) 1st HY 2016 1st HY 2015 Earnings before taxes 107.3 104.1 +/– non-cash expenses and income +70.6 +53.2 +/– change in Working Capital -258.9 -112.8 +/– other (mainly tax payments) -41.4 -21.1 Cash
Slide 14: Equity ratio at 41.9 %
14 ｜KRONES Conference Call July 21, 2016 Equity ratio at 41.9 % Assets in € million Equity and liabilities in € million 2,707 2,702 2,707 2,702 Total Total 2,428 Property, plant 2,428 646 663 and equipment, intangible assets, and financial assets 1,111 624 1,132 51 Non-current assets Equity 85 988 4
Slide 15: KRONES targets 2016
15 ｜KRONES Conference Call July 21, 2016 KRONES targets 2016 Revenue growth EBT margin ROCE Target: +3 % Target: 7.0 % Target: 18 %
Slide 16: New/reelected Supervisory Board Members
16 ｜KRONES Conference Call July 21, 2016 New/reelected Supervisory Board Members Volker Kronseder Hans-Jürgen Thaus (Chairman of the Supervisory Board) (reelected) Philipp Graf von und zu Lerchenfeld Prof. Dr. Susanne Nonnast (reelected) (new) Norman Kronseder (reelected)
Slide 17: )( KRONES
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Slide 18: Financial Calender 2016
18 ｜KRONES Conference Call July 21, 2016 Financial Calender 2016 21.07.2016 Conference Call Group Q2 2016 21.07.2016 Interim Report as per June 30 26.10.2016 Conference Call Group Q3 2016 26.10.2016 Interim Report as per September 30 Olaf Scholz Head of Investor Relations KRONES AG Böhmerwaldstraße
Slide 19: Disclaimer
19 ｜KRONES Conference Call July 21, 2016 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