Krones Ag · XETR:KRN
Krones — H1 2021 Earnings Presentation
22 slides from Krones's earnings presentation, Aug 3, 2021
Slide 1: Krones First Half Year 2021 Conference Call
Krones Conference Call 1st HY 2021 Krones First Half Year 2021 Conference Call 03 August 2021 Christoph Klenk, CEO Norbert Broger, CFO
Slide 2: After a strong second quarter, Krones raises full-year guidance for 2021
Krones 1st HY 2021 After a strong second quarter, Krones raises full-year guidance for 2021 ▪ The upward trend in Krones’ order intake continued in the second quarter. In total between January and June 2021, the volume of orders increased by 40.3% to €2,044.3 million. ▪ Krones increased revenue in t
Slide 3: Krones highlights 1st HY 2021
Krones highlights 1st HY 2021 Order intake Revenue EBITDA margin Free cash flow +40.3% +1.3% 8.0% €35million €2.04 billion €1.7 billion (PY 7.0%) (PY € –65 million) 3 | Krones AG | Conference Call 03 August 2021
Slide 4: Order intake and orders on hand 1st HY 2021
Order intake and orders on hand 1st HY 2021 (€ million) 4,084 +3.2% Strong and sustainable market recovery in 2021 after Covid-19 crisis 2020 3,307 Q4 1,126 –19.0% ◼ Order intake with more than €2 billion on pre Covid-19 level. For 2nd half- 1,006 year order intake will be below this Q4 –10.7% Q3 91
Slide 5: Revenue development by quarter
Revenue development by quarter (€ million) 3,959 +2.7% 3,323 1st half-year of 2020 just partly hit by Covid-19 crisis, Q4 1,069 –16.1% so increase in revenue of 1.3% in line with expectations 874 Q4 –18.2% ◼ Revenue and performance still influenced in Q3 1,000 1st half-year by Covid-19 regulations 7
Slide 6: Revenue developed differently in 1st HY 2021
Revenue developed differently in 1st HY 2021, but represents an opportunity for further growth Eastern Europe/ Russia/Central Asia 2019 2020 2021 7.8% 7.8% 7.2% Europe North and 2019 2020 2021 Central America 35.1% 31.7% 29.8% China 2019 2020 2021 2019 2020 2021 14.9% 17.5% 20.1% 8.2% 5.8% 7.2% Midd
Slide 7: EBITDA and EBITDA margin by quarter
EBITDA and EBITDA margin by quarter (€ million and %) 227.3 –25.7% Q4 63.0 In 1st half-year EBITDA margin at 8% 133.2 137.7 ◼ Compared with Q1 2021 (8.7%) –41.4% EBITDA margin of Q2 (7.2%) was +16.2% 8.0 Q3 47.4 Q3 28.8 7.0 influenced by lower revenue of Q2 and one-offs for Covid-19 bonus Q2 30.9 Q2
Slide 8: EBT and EBT margin by quarter
EBT and EBT margin by quarter (€ million and %) 75.7 41.7 +138.1% –79.6% 4.4 Q3 13.5 Q2 31.1 In 1st half-year 2021 EBT margin was at 4.4% ◼ Structural measures impacted positively 2.5 the earnings situation. EBT margin on Q1 51.5 Q1 53.0 1.9 Q1 44.6 expected level Q2 –3.6 ◼ Margin level in line with
Slide 9: Personnel and material expenses 1st HY
Personnel and material expenses 1st HY (€ million and %) Personnel expenses 1st HY (€ million) Material expenses 1st HY (€ million) ◼ Structural measures of 2020 have 642 974 further positive impact on personnel 595 597 cost ratio. One-offs for Covid-19 870 813 bonus in Q2 2021 included ◼ Increase i
Slide 10: Krones can leverage various Flexibility Elements within a Customer Project
Krones can leverage various Flexibility Elements within a Customer Project Scheduling Value Chain Flexibility in time & Long lead times, high place flexibilities, various options for substitution (other suppliers, own production network, engineered to order,…) Order Intake Possibility to steer Order
Slide 11: Krones' Value Chain remains resilient despite global Supply Shortages
Krones‘ Value Chain remains resilient despite global Supply Shortages Resilience Resilience Serial mass production and Engineered to order discrete mass assembly Order Quoting and order intake process enables forecasting; More market driven, higher volumes, very short Intake long project lead-times
Slide 12: Revenue and EBITDA per segment in 1st HY
Revenue and EBITDA per segment in 1st HY Revenue development 1st HY (€ million) Segment EBITDA (€ million) and Product filling and decoration EBITDA margin (%) in 1st HY ◼ Revenue increased in Q2 2021 by 9% but 1,581 143.7 still influenced by Covid-19 regulations Product filling 1,470 1,443 9.8% +3%
Slide 13: Split of segment II
Split of segment II Revenue 1st HY (€ million) EBITDA (€ million) and EBITDA margin (%) 150.4 150.6 Process technology Process +1.4 ◼ Revenue nearly similar to prior year; strong technology –13.3 improvement in EBITDA based on structural 0.9% measures –8.8% ◼ Strongest lossmaking part in beer in 202
Slide 14: Working capital 1st HY
Working capital 1st HY (in %) Working capital in % of revenue (1st HY) Part of working capital in % of revenue (last 12 months) (%, average over four quarters) Receivables 28.1 41.4 27.6 26.0 37.9 36.6 Working Capital in % of revenues (average) Payables with 28.1% higher than prior year 11.5 ◼ Incre
Slide 15: Krones employees worldwide
Krones employees worldwide -617 -504 Σ-1.121 17,353 -6.5% 16,736 16,232 ◼ Reduction of employees worldwide by more than 600 in 2020 Σ-833 -369 -464 -7.8% ◼ Further reduction in 1st half year 2021 10,733 by 504 employees mainly from the 10,364 9,900 voluntary program (fall 2020) and just a few from r
Slide 16: Krones Liquidity, equity and equity ratio
Krones Liquidity, equity (€ million) and equity ratio (in %) Liquidity reserves 1st HY 2021 > €1.2 billion Equity (€ million) and equity ratio (in %) Used credit lines 1,370 €15 million ◼ High liquidity reserves of > €1.2 billion 1,200 1,274 for financing the strong increasing Cash business activiti
Slide 17: Free cash flow 1st HY
Free cash flow 1st HY 1st HY (€ million) 2021 2020 Earnings before taxes (EBT) 75.7 31.8 Free cash flow ~€100 million higher compared +/– Other non-cash changes +156.0 +95.7 to Q2 2020 +/– Change in Working Capital –43.6 –84.1 Main reasons for positive development: +/– Other assets and liabilities –
Slide 18: Krones raised guidance for 2021
Krones raised guidance for 2021 Revenue Growth EBITDA margin Working capital 7% – 9% 7% – 8% 26% – 27% Previous Targets Previous Targets Previous Targets 2.5% ̶ 3.5% 6.5% ̶ 7.5% 26% ̶ 27% 18 | Krones AG | Conference Call 03 August 2021
Slide 19: Questions and answers
Questions and answers 19 | Krones AG | Conference Call 03 August 2021
Slide 20: Thank you for your attention!
Thank you for your attention! 20 | Krones AG | Conference Call 03 August 2021
Slide 21: Financial calendar 2021
Financial calendar 2021 5 November 2021 Conference Call Group Quarterly statement for the period from 1 January to 30 September 2021 Olaf Scholz Head of Investor Relations, Treasury and M&A Krones AG Böhmerwaldstrasse 5 93073 Neutraubling/Germany Phone +49 9401 70-1169 E-Mail olaf.scholz@krones.com
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