KRONES AG KRONES 9 Months 2020
Preliminary Figures
Conference Call November 04, 2020
2 ｜ KRONES Conference Call November 04, 2020 | JFH |
The Global Impact of COVID-19 is severe,…
Travel Restrictions | On-Trade Sales | Supply Chain |
…but long-term Growth Fundamentals remain intact…
Population Growth | Middle Class | Urbanization |
…and Krones is well positioned for the "New Normal"!
Remote & Digital | Sustainable | Localized |
3 ｜ KRONES Conference Call November 04, 2020
Krones Highlights Q1 - Q3 2020
-22.2%
2,301 EURm
New orders
6.0%
147,3 EURm
2,449
-58.4
Sales (-15.3%)
EURm
Free cash flow
EURm (PY -294.5 EURm)
EBITDA margin (PY 164,3 EURm; 5.7%)
4 ｜ KRONES Conference Call November 04, 2020
Order intake in Q3 clearly better than Q2 - but still affected by Covid 19
4,084
2,301
-22.2%
-8.2%
844
3,959
2,449
-15.3%
-25.0%
750
-16.5%
− | Order intake in Q3 2020 was 8% below prior |
year, but with a strong increase vs. Q2 2020 | |
(+37%). | |
− | As a result from low Q2 2020 order intake, the |
-38.2%
616
-19.3%
841
-4.2%
757
942
decrease in sales in Q3 was 25% compared to |
Q3 2019. |
2019 | 2020 | 2019 | 2020 |
Order intake (EURm) | Sales (EURm) |
5 ｜ KRONES Conference Call November 04, 2020
Krones` sales split
Share of sales (Q1 - Q3)
North America
2018 2019 2020
14.6% 17.5% 18.6%
13.8%18.6%
Europe | |||||
2018 | 2019 | 2020 | CIS/Central Asia | ||
36.6% | 39.2% | 33.1% | 2018 | 2019 | 2020 |
2.3% | 1.7% | 2.0% | |||
35.9% | |||||
33.1% |
2.6% | 2.0% |
Africa/Middle East
2018 2019 2020
14.8% 11.2% 15.2%
China
2018 2019 2020
6.8% 8.6% 6.7%
9.1%
6.7%
Asia/Pacific
2018 2019 2020
South America
15.2%
12.1% 12.6% 12.4%
13.6%
2018 2019 2020
12.8% 9.2% 12.0%
9.6%12.0%
Trend covering the last six years (full year)
15.4%
12.4%
6 ｜ KRONES Conference Call November 04, 2020
Personnel and material cost
Personnel cost Q1 - Q3 (EURm)
848.3 | 945.1 | 838.2 | |
786.5 | |||
31.6 | 31.2 | 32.6 | 34.1 |
2017 | 2018 | 2019 | 2020 |
Material cost Q1 - Q3 (EURm)
1,384.2 | 1,488.3 | ||
1,199.5 | 1,182.9 | ||
48.2 | 51.0 | 51.3 | 48.2 |
2017 | 2018 | 2019 | 2020 |
Personnel cost to total performance (%)
Material cost to total performance (%)
- Short-termmeasures (reduction of over-time,short-time working, …) reduced personnel costs as well as the further positive effects from structural measures (more than 560 or 3.3% less employees at Krones in 2020)
- Material costs were further positively influenced by the reduction in purchased services (mainly temporary workers) by more than 100 EURm yoy. The product mix (new machine vs. after sales) affected positively the ratio of material costs to total performance further more
7 ｜ KRONES Conference Call November 04, 2020
Cost savings compensate the negative sales effect on the EBITDA in Q3
− Cost savings in personnel and material costs compensate most of the negative effects from the decrease in sales on the
EBITDA
− EBITDA margin in Q3 with 6.0% was higher than prior year (5.7%)
− EBT affected by 13.6 EURm impairments in Q2 2020
8 ｜ KRONES Conference Call November 04, 2020
Development of sales and EBITDA per segment 9 months
Segment | Sales (EURm) 9 months | EBITDA (EURm) 9 months | ||||
Product filling | Growth | EBITDA margin | ||||
and decoration | +6% | +6% | -13% | 8.7% | 7.0% | 8.3% |
2,271 | 2,418 | 2,094 | ||
197.9 | 169.7 | 173.4 | ||
Beverage production/ | Growth | EBITDA margin | |||||||
Process technology | +14% | +12% | -25% | 1.9% | -1.1% | -7.4% | |||
(incl. Intralogistics) | 472 | ||||||||
421 | |||||||||
355 | |||||||||
+8.2 | |||||||||
-5.4 | |||||||||
-26.1 | |||||||||
Product filling
- The measures to reduce personnel costs (short-term) as well as reduction of employees on one hand and the positive product mix on the other hand have had positive effects in the core segment, which was influenced by decrease in sales mainly in the third quarter.
Process technology
-
This segment improved its profitability in Q3, but still with a small loss of
1 EURm in Q3 2020. - Intralogistics as part of the segment has recovered in Q3 the shutdown of Q2 and posted a small profit of 0.5 EURm in Q3.
2018 | 2019 | 2020 | 2018 | 2019 | 2020 |
9 ｜ KRONES Conference Call November 04, 2020
Working capital to sales ratio increased
Working capital* in % | ||
of sales (Q1-Q3) | ||
28.8 | 28,3 | |
25.7 | ||
2018 | 2019 | 2020 |
*LTM (Last twelve months) |
ROCE* in % (Q1-Q3) | ||
15.5 | ||
4.8 | ||
2,1 | ||
2018 | 2019 | 2020 |
- Due to lower prepayments and increase in receivable regarding onsite installations postponed because of Covid 19
- Additionally the average working capital to sales ratio (last twelve months) was influenced by the sales decrease in 2020
10 ｜ KRONES Conference Call November 04, 2020
Free cash flow improved significantly by 236 EURm vs. prior year
Q1 - Q3 (in EURm) | 2020 | 2019 |
Earnings before taxes | 26.7 | 61.4 |
+/- Other non-cash changes | +176.6 | +187.9 |
+/- Changes in working capital | -85.5 | -321.1 |
+/- Changes in other assets and liabilities | -107.9 | -50.2 |
Cash flow from operating activities | 9.9 | -122.0 |
+/- Capex | -68.5 | -138.3 |
+/- M&A activities | 0 | -34.9 |
+/- Other | +0.2 | +0.7 |
Free cash flow | -58.4 | -294.5 |
+/- Financing activities | +124.6 | +248.9 |
Other | 0 | +3.8 |
Net change in cash | +66.2 | -41.8 |
Cash at the end of the period | 176.6 | 177.0 |
- Change in working capital favorable developed compared to last year
- Investments were reduced by 50% compared to the same period of the previous year
- No M&A activities
- Free cash flow improves by more than 230 EURm in the first nine months
11 ｜ KRONES Conference Call November 04, 2020
Krones is very well positioned financially
Net cash, free credit lines and high equity ratio in Q3
Liquidity reserves > €1bn | Equity in EURm and equity ratio in % |
Used credit lines 255 EURm | 1,433 | 1,370 | 1,314 | |
1,330 | ||||
1,226 |
Cash 177 EURm | 43.8% | 43.2% | |||||||||||
39.9% | 41.3% | 41.7% | |||||||||||
2016 | 2017 | 2018 | 2019 | 2020 |
Free credit lines 800 EURm | 30.09. |
12 ｜ KRONES Conference Call November 04, 2020
Krones Outlook 2020
Revenue growth | EBITDA margin |
~-17%5.5-6.0%
Sales | Equivalent to EBT margin |
~€3.3bn 1.0-1.6%
This outlook does not include any one-off expenses for impairments and structural measures for capacity adjustments.
If further countries and regions impose lockdowns, partial lockdowns or travel restrictions because of Covid 19, this could negatively impact the completion of orders and order intake and consequently have a negative influence on Krones' financial performance.
13 ｜KRONES Conference Call November 04, 2020
14 ｜ KRONES Conference Call November 04, 2020
Questions and Answers
? …
15 ｜KRONES Conference Call November 04, 2020
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. No representation 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 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2020 09:44:43 UTC
