KRONES AG Krones Financial Year 2020
Preliminary Figures 2020
Conference Call 25 February 2021
Krones summary 2020
Krones' consolidated revenue fell in 2020 as a result of the Covid-19 pandemic by 16.1% to €3.32 billion.
Order intake in 2020 was also significantly affected with €3.31 billion or 19.0% below 2019 - however first positive signs of improvement in Q4.
Krones' profitability was impacted by one-time expenses of €72 million for capacity adjustments. EBITDA decreased from €227.3 million to €133.2 million. The EBITDA margin was 4.0%
(previous year: 5.7%). Excluding one-time charges, the EBITDA margin was 6.2% (previous year: 6.6%).
Krones generated free cash flow of €221.3 million in 2020 (previous year: €-94.4 million).
This year, based on the current situation, Krones expects business to pick up slightly and forecasts revenue growth of 2.5% to 3.5% and an EBITDA margin of 6.5% to 7.5% for 2021.
Krones highlights 2020
Order intake | Revenue | EBITDA margin | Free cash flow |
- 19.0% | - 16.1% | 4.0% | |
€221million | |||
€3.3 billion | €3.3 billion | (PY 5.7%) | (PY € -94 million) |
Order intake by quarter and orders on hand (€ million)
4,084
Due to the Covid-19 pandemic, order intake decreased 19% in 2020
◼ Order intake in the 4th quarter 2020 was around €1 billion. Compared to the 3rd quarter, order intake had a strong increase of 19.2% in 4th quarter
1,211 -12.6%
Order intake
◼ Order on hand at 31.12.2020 was €1,211 million and 12.6% below prior year, but gives a good utilisation for the first month of 2021
Orders on hand
First positive improvements in order intake mainly in the 4th quarter 2020
2018
2019
2020
Revenue development by quarter (€ million)
3,959
3,854
+2.7%
Krones reached "Covid-19 affected" revenue outlook in 2020
◼ Revenue was decreased in 2020 by 16%, which was within our outlook for 2020 (-17%)
◼ Revenue at 4th quarter was influenced by weaker order intake in prior quarters
2018 2019
2020
Krones' revenue split remains well balanced, but except in Middle East/Africa, in all regions decrease in revenue caused by Covid-19
Russia/ Central Asia
2018 | 2019 | 2020 |
2.1% | 1.9% | 1.9% |
EBITDA and EBITDA margin by quarter (€ million and %)
305.9
In 2020 EBITDA margin without one-offs was at 6.2%
◼ Cost savings in personnel and material expenses compensate most negative effects in the production capacity during the year
◼ Expenses for capacity adjustments in an amount of around €72 million burden the 4th quarter
Krones slightly exceeds EBITDA margin outlook for 2020 (5.5% - 6.0%) - w/o one-offs
Q4
-14.1
2018
2019
2020
EBT and EBT margin by quarter (€ million and %)
204.3
In 2020 EBT margin without one-offs was at 1.3%
◼ Among expenses for capacity adjustments (around €72 million) impairments and value adjustments of €8 million influenced the EBT in 2020
EBT (€ million)EBT margin in %
Krones reached the EBT margin outlook (1.0% - 1.6%) w/o one-offs for restructuring and impairments
2018
2019
2020
Personnel and material expenses (€ million and %)
Personnel expenses (€ million)
Material expenses (€ million)
1,276
2,032
2,042
◼ Short term measures reduce personnel expenses as well as further positive effects from structural measures (- 600 or 3.5% less employees vs. 2019)
◼ Without one-offs personnel expenses to total performance was at 32.8%
◼ Positive mix effects (new machines vs. after sales), reduction in purchased services and cost savings in material had positive impacts on the material quote
2018
2019
2020
2018
2019 2020
Personnel expenses to total performance (%)
Material expenses to total performance (%)
Revenue and EBITDA per segment
Revenue development (€ million)
Segment EBITDA (€ million) and EBITDA margin (%)
Product filling and decoration
3,265
◼ Decrease in revenue nearly on group level (-14%)
Product filling and decoration
3,178
+2.8%
2,797 -14.3%
313.5
9.9%
◼ EBITDA margin without one-offs for expenses for capacity adjustments was at 8.5%
◼ The positive product mix, savings in material costs and measures to reduce personnel costs (short-term) as well as the reduction of employees have had positive effects in this segment
Beverage production/ process technology
676
694 +2.6%
Beverage production/process technology
526 -24.2%
◼ Stronger decrease in revenue (-24%)
◼ EBITDA margin w/o one-offs was at -6.1%
2018
2019
2020
2018
2019
2020
◼ Measures to increase profitability
EBITDA margin in %
(e.g. carve-out brewery technology) are implemented in 2021
Working capital and ROCE (in %)
Working capital to revenue
ROCE %
(%, average over four quarters)
27.3
28.3
26.9
Krones reached with an average of 28.3% the working capital outlook (28%-29%) for 2020
12.8
◼ Increase in average working capital due to the fact that the working capital adjustment was not as fast as the decline in sales due to the Covid-19 situation
2.7
◼ At year-end the working capital to revenue rate was at 25.7% (prior year 25.8%)
-2.6
2018
2019
2020
2018
2019
2020
Krones employees worldwide
17,353
16,545
16,736
◼ Decrease of employees worldwide by more than 600
◼ Further programs to reduce employees in Germany initiated in 2020 with effects in 2021
10,887
10,733
10,364
◼ Employees in emerging markets stabilized at 24% of group workforce
Employees in the emerging markets 2018 - 2020
6,620
6,372
5,658
2018
2019
2020
Worldwide
Germany
Outside Germany
Year | South America | Africa | Asia-Pacific | CIS/Eastern Europe | China | Total |
2018 | 637 | 452 | 830 | 507 | 716 | 3,142 |
2019 | 782 | 671 | 1,009 | 933 | 792 | 4,187 |
2020 | 778 | 639 | 974 | 922 | 742 | 4,055 |
Krones Liquidity, equity (€ million) and equity ratio (in %)
Liquidity reserves > €1 billion
Equity (€ million) and equity ratio (in %)
1,433
◼ Liquidity reserves increased due to uncertainty in the markets
◼ No government loans (KFW)
◼ Still very solid equity level
2018
2019
2020
Lower working capital caused significantly higher free cash flow
Free cash flow increased by approximately €315 million in 2020
◼ Main reasons for the increase:
◼ Working Capital improvements result in a decrease of €166 million yoy
◼ Capex reduction from €168.9 million to €93.8 million
◼ Financing activities include the dividends for 2019 (€23.7 million) as well as a reduction of bank liabilities and payments for leasing
(€ million) | 2020 | 2019 |
Earnings before taxes (EBT) | -36.6 | 41.7 |
+/- Other non-cash changes | +187.7 | +309.4 |
+/- Change in Working Capital | +166.0 | -202.3 |
+/- Other assets and liabilities | +5.7 | -55.3 |
Cash flow from operating activities | +321.8 | +93.5 |
+/- Capex | -93.8 | -168.9 |
+/- M&A-Activities | 0.0 | -28.0 |
+/- Other | -6.7 | +9.0 |
Free cash flow | +221.3 | -94.4 |
+/- Financing activities | -99.0 | -19.3 |
+/- Others | -15.7 | +5.3 |
Net change in cash | +106.6 | -108.4 |
Cash at the end of period | 217.0 | 110.4 |
Krones outlook 2021
Growth | EBITDA margin | Working capital |
2.5%-3.5% | 6.5%-7.5% | 26%-27% |
(organic growth) | (EBT margin 3%-4%) |
Questions and answers
Thank you for your attention!
Financial calendar 2021
25 March 2021
Annual Report 2020
7 May 2021
Conference Call Group
Quarterly statement for the period from 1January to 31March 2021
17 May 2021
Annual General Meeting
Olaf Scholz
3 August 2021
Conference Call Group Interim report for the period from 1January to 30 June 2021
Head of Investor Relations
Krones AG Böhmerwaldstrasse 5
5 November 2021
Conference Call Group
93073 Neutraubling/Germany
Quarterly statement for the period from 1January to 30 September 2021
Phone +49 9401 70-1169
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 presentation are by their very nature subject to various known and unknown risks, uncertainties and other factors, the non-occurrence or occurrence of which could cause material differences in future results of operations, financial situation, development or performance of Krones AG. Factors that could cause such differences include but are not limited to changes in political, business, economic and competitive environment, effects of future legal and legislative issues, fiscal, and other regulatory measures, foreign exchange rate fluctuations, interest rates, the availability of financing, developments in raw material and personnel costs, launches of competing products or services, poor acceptance of new products or services, and changes in business strategy.
Krones AG does not intend and does not assume any liability whatsoever to publicly update or revise any forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. Norepresentation or warranty, express or implied, is made by Krones AG and/or its management with respect to the fairness, completeness, correctness, reasonableness, or accuracy of any information, facts, expectations or opinions contained herein. Neither Krones AG nor any of its affiliates, representatives or advisors shall have any liability whatsoever (in negligence or otherwise) for any losses or damages arising from any use of this presentation or its content or otherwise arising in connection with the statements given herein.
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Krones AG published this content on 25 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2021 08:51:00 UTC.
