Krones : Quarterly statement Q1 2024

Krones Group

Quarterly statement for the period from 1 January to 31 March 2024

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To our shareholders

Assets, financial position, and results of operations

Interim consolidated financial statements for the period ended 31 March 2024

Other information

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
	and results of operations	statements

1 To our shareholders

Highlights and key figures

. . . . . .4

Letter from the Executive Board .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5

The Krones share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . .

1 | To our shareholders	2 | Assets, financial position,
Highlights and key figures	and results of operations

3 | Interim consolidated financial	4 | other Information
statements

1 | 4

Highlights and key figures

Krones continues profitable growth

At €1,482..7 million, the contract value of orders in the first quarter of 2024 was close to the very high level seen in the previous year (€1,513..1 million) and, with an increase of 17..4%, significantly higher than the order intake in the fourth quarter of 2023 (€1,263..0 million)..

Krones' growth is fully on track.. Revenue increased by 4..0% to €1,247..1 million.. Krones has consolidated the revenue of the recently acquired Netstal Maschinen AG only since 28 March 2024..

The EBITDA margin improved from 9..6% in the previous year to 10..1%, which is within the guidance range for the full year 2024..

Krones significantly increased free cash flow before M&A activities to +€184..2 million in the first quarter of 2024 (previous year: -€21..0 million)..

Following the very positive first-quarter trend, Krones has confirmed the guidance for 2024.. For the full year, the company expects revenue growth of 9 to 13%, an EBITDA margin of 9..8 to 10..3% and ROCE of 17 to 19%..

			1 Jan -	1 Jan -	Change
			31 Mar 2024	31 Mar 2023
Revenue	€ million	1,247..1	1,198..8	+4..0%
Order intake	€ million	1,482..7	1,513..1	-2..0%
Orders on hand at 31 March	€ million	4,357..9	3,780..7	+15..3%
EBITDA	€ million	125..4	114..9	+9..1%
EBITDA margin	%	10..1	9..6	+0..5 PP*
EBIT	€ million	87..7	80..4	+9..1%
EBT	€ million	89..0	83..0	+7..2%
EBT margin	%	7..1	6..9	+0..2 PP*
Consolidated net income	€ million	65..8	63..5	+3..6%
Earnings per share	€	2..08	2..01	+3..5%
Capital expenditure for PP&E and
intangible assets	€ million	35..9	35..2	+€0..7 million
Free cash flow	€ million	4..1	-21..0	+€25..1 million
Net cash and cash equivalents at 31 March**	€ million	438..7	640..0	-€201..3 million
Working capital to revenue***	%	17..7	17..9	-0..2 PP*
ROCE	%	19..0	17..8	+1..2 PP*
Employees at 31 March
	Worldwide		19,349	17,500	+1,849
	Germany		10,803	10,217	+586
	Outside Germany		8,546	7,283	+1,263

* PP = percentage points  ** Cash and cash equivalents less debt  *** Average of last 4 quarters

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
Letter from the	and results of operations	statements
Executive Board

1 | 5	Letter from the Executive Board
	Dear shareholders and friends of Krones,
	Krones can look back on a successful first quarter 2024. Our markets are largely
	unaffected by economic fluctuations and customers continue to be very keen to
	invest. At €1.48 billion, order intake from January to March almost matched the
	exceptionally high level of the previous year (€1.51 billion) and was well above
	that of the fourth quarter of 2023 (€1.26 billion). Revenue climbed 4.0% to €1.25
	billion. Krones also further improved profitability in the first quarter of 2024.
	The EBITDA margin rose from 9.6% in the previous year to 10.1%. Overall, after
	the first three months, we confirm our forecasts for the full year 2024.
	Efficiency and pricing strategy enhance profitability
	The procurement market situation also developed positively for Krones.
	Electronic components are once again far more readily available than they
	were during much of the 2023 financial year. This will have a positive effect on
	production output in the current year. However, material prices remain high
	and labour costs will increase in the course of the year, mainly due to collective
	pay agreements. In order to strengthen profitability in 2024 as planned, Krones
	will further improve efficiency and consistently implement­	its pricing strategy.
	We are supported in this by the very large order backlog of €4.36 billion.

Important strategic acquisition of Netstal

Krones marked a major strategic milestone in the first quarter with the acquisition of the Swiss injection moulding technology company Netstal Maschinen AG. As a leading supplier of injection moulding machines for PET preforms and closures, Netstal perfectly complements Krones' product portfolio for the beverage market. In addition, we now cover all technologies required for circular PET solutions. Furthermore, with its injection moulding technology for medical applications and thin-wall packaging, Netstal also supports Krones' strategy of diversifying into the medical/pharmaceutical market and into the food and body care sectors.

The successful implementation of our acquisition strategy will help Krones to continue on its profitable growth path and to turn the visions of "Solutions beyond tomorrow" into reality in the medium and long term. The bedrock of the company's continued success is the Krones workforce. It is they who bring "Solutions beyond tomorrow" to life with great dedication day after day.

CEO

+9..7% - 0.3%

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
The Krones share	and results of operations	statements

1 | 6

The Krones share

Hopes of lower interest rates drive equity indices to record highs in first quarter of 2024

Following the price gains in 2023, the upward trend in international equity markets continued in the first quarter of 2024. The main focus of the markets was on the hoped-for turnaround in interest rates in the US and Europe. Prospects of several interest rate cuts by central banks over the course of the year drove a sharp rise in share prices. The record-breaking rally was occasionally interrupted on the publication of economic data pointing to higher inflation rates. This temporarily dampened hopes of interest rate cuts. However, there were no major downward corrections in the first quarter of 2024.

Germany's best-known share index, the DAX, started the new year with slight price losses and marked its low for the first quarter of 2024 at 16,345 points on

17 January. After that, hopes of interest rates cuts boosted prices and the benchmark index rose sharply. At the beginning of February, the DAX passed the 17,000 point mark, breaking the all-time record set in December 2023. This upward movement then accelerated. The index exceeded the next thousand mark on 20 March. On March 28, the DAX reached its high for the first quarter at 18,513 points during the course of the day and closed just below that at 18,492 points. This left the German benchmark index 10.4% higher at the end of March than at the beginning of the year.

Krones shares from • January to •• March ••••

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January	February	March
Krones	indexed

Krones share price rises by 9.7% in the first quarter of 2024 and reaches new record high

After rising by a substantial 14.6% in the fourth quarter of 2023 to a year-end closing price of €111.80, the Krones share price consolidated slightly in the first days of trading in 2024. Our shares reached their lowest first-quarter closing price at €108.30 on 5 January. They then rose to around €117 at the end of January. Our shares then moved sideways without any major fluctuations.

Perfomance 1 January to 31 March 2024 Krones share

price:

mDAX:

Krones share data

Earnings per share (€)

High (€)

Low (€)

Price at 31 March (€)

Market capitalisation at 31 March (€ billion)

First quarter

2024

2..08

123..40

108..30

122..70

3..88

First quarter

2023

2..01

115..20

103..80

108..70

3..43

On February 22, the publication of the preliminary full-year figures for 2023 and the positive forecast for the 2024 financial year gave a short-run boost to the share price. However, profit-taking halted the rise and our share initially bounced off the €120 ceiling.

Source share price data: Xetra (Closing price)

1 | To our shareholders	2 | Assets, financial position,
The Krones share	and results of operations

3 | Interim consolidated financial	4 | other Information
statements

1 | 7	From the end of February, starting at around €110, the Krones share price en-
	tered a sustained upward trend. This was underpinned by positive comments
	from analysts. The share price rose steadily and passed the €120 mark on
	22 March. This brought it close to the all-time high of €122.80 reached in 2018.
	That figure was then beaten on 26 March, when the Krones share price climbed
	to €124.20 over the course of the day, and closed trading €123.40. The closing

price for the first quarter was €122.70. Krones' share price thus rose by 9.7% from January to March 2024, significantly outperforming the MDAX, in which Krones has been listed again since 18 December 2023. The MDAX showed virtually no change over the same period, with a decline of 0.3%.

Key data for the Krones share

Number of shares	•,••,••
German securities identification number	-•••
	€ •••-•••
ticker symbol	'

Shareholder structure

Krones' shareholder structure remained largely unchanged in the first quarter of 2024 compared to the end of 2023. At 31 March 2024, Familie Kronseder Kon- sortium GbR held the majority of Krones AG's shares, with 52.1%. The Kronseder family intends to remain a stable majority shareholder of Krones AG. 5.8% of the shares were held at the end of the first quarter by the Schadeberg family.

For further information on Krones shares, please see the Krones website: https://www.krones.com/en/company/investor-relations/share.php

Shareholder structure as of March •

	Familie Kronseder Konsortium GbR	Other .%
	.%
				Familie Schadeberg .•%

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
	and results of operations	statements

Assets, financial position, and results
2 ofRevenueoperations	. . . . . . . . . . . . .9
Order intake and order backlog	. . . . . . . . . . . . . . . . . . . . . .11
Earnings	. . . . . . . . . . . . . . . . . 12
Consolidated cash flow	. . . . . . . . . . . . . . . . . .15
Assets and capital structure	. . . . . . . . . . . . . . . . . . . . 17
Report from the segments	. . . . . . . . . . . . . . . . . . 19
Employees	. . . . . . . . . . . . . . . .22
Report on expected developments . .	. . . . . . . . . . . . . . . . . . . 23

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
	and results of operations	statements
	Revenue

2 | 9

Revenue

Krones' revenue up 4.0% in first quarter of 2024

Krones continued its positive revenue trend in the first quarter of 2024.

From January to March, revenue increased by 4.0% from €1,198.8 million in the previous year to €1,247.1 million. It should be noted here that there were fewer working days in the reporting period than in the prior-year quarter. In addition, Krones has consolidated the revenue of the recently acquired Netstal Maschi- nen AG only since 28 March 2024. Because of this, growth in the first quarter was not yet within the full-year 2024 guidance range of 9 to 13%, but was fully on target. The guidance includes the effects of the Netstal acquisition.

Revenue from January to March ( million)

The procurement market situation has now eased and the supply of electronic components was significantly better in the reporting period than in the previous year. This will have a positive impact on output in the coming quarters, although with a time lag. Krones' revenue in the first quarter of 2024 was not materially affected by exchange rates, acquisitions or divestments.

The revenue growth in the first quarter of 2024	Following the first quarter,
mainly reflects volume effects. Prices for our	Krones is on track to achieve
growth target of 9 to 13%
products and services remained stable.
for the full year 2024.

Segment revenue from Jan to Mar ••••	Segment revenue from Jan to Mar •••

	,•.
,	,.
	•.
,	.
	•.•
•

Intralogistics

ƒ.%* (ƒ.‰ million)

Process Technology

†.%* (.ƒ million)

Filling and

Packaging Technology

€'.ƒ%* (,†.ƒ million)

Intralogistics

.%* (€.‰ million)

Process Technology ‰.%* (†‰.Š million)

Filling and

Packaging Technology

€'.€%* (,††. million)

				•

*Share of consolidated revenue of ,. million	*Share of consolidated revenue of ,‰€.€ million

1 | To our shareholders	2 | Assets, financial position,	3 | Interim consolidated financial	4 | other Information
	and results of operations	statements
	Revenue

2 | 10

Revenue by region

€137.9 million was 19.1% higher in the reporting period than in the previous year (€115.8 million). Revenue also recovered in China, climbing 28.0% relative

Quarterly revenue figures for the various regions are generally not very meaningful because orders and revenue can fluctuate significantly from one quarter to the next.

Following the disproportionately strong increase in the previous year, revenue in Germany fell by 12.7% to €118.2 million between January and March 2024 (previous year: increase of 30.4% to €135.4 million). As a percentage of consolidated revenue in the first three months, this represented a ­decrease from 11.3% a year earlier to 9.5%.

to the low prior-year figure of €71.8 million to €91.9 million.

In the large North and Central America sales region and in South America/ Mexico, business stabilised in the reporting period following strong growth in 2023. While revenue in North and Central America fell by 2.8% to €285.8 mil- lion, revenue in the South America/Mexico region increased by 4.9% to €130.1 million (previous year: €124.0 million). In the Asia/Pacific region, which recorded the highest percentage growth in the full year 2023, Krones' revenue

Krones generated ­about 90% of first quarter revenue internationally

In the large Western Europe sales region, business performance in the first quarter was below average. Compared to the previous year's high figure of €193.8 million, revenue fell by 12.4% to €169.8 million between January and March 2024. In contrast, revenue in Eastern Europe rose at a faster rate than total revenue. Revenue there increased by 12.6% to €64.3 million (previous year: €57.1 million). After a slow year in 2023, business in the Central Europe region (Austria, Switzerland and the Netherlands) picked up again in the first quarter. Compared to the extremely low prior-year figure (€40.8 million), revenue there rose by 90.0% to €77.5 million. Overall, the company improved revenue in

decreased by 11.8% to €138.8 million (previous year: €157.4 million).

Krones' internationally balanced customer and revenue mix is one of its strategic strengths. In the first three months of 2024, the company generated 47.8% (previous year: 44.6%) of Group revenue in emerging and developing markets. The share of revenue generated in mature industrialised countries was 52.2% (previous year: 55.4%).

Krones Group revenue by region

Europe­ (excluding Germany) in the first three months of 2024 by 6.8% year on year to €311.6 million (previous year: €291.7 million). The share of consolidated revenue consequently increased in the reporting period to 25.0% (previous year: 24.4%).

The Central Asia/CIS region now has only a very minor influence on the Krones Group's business. Revenue came to €32.8 million in the first three months of 2024 (previous year: €8.9 million). The share of Group revenue was consequently 2.6%.

After a strong full year 2023, Krones' non-European markets remained stable overall in the first quarter of 2024. In total, revenue generated outside Europe between January and March rose by 2.8% year on year to €784.5 million (pre­ vious year: €762.9 million), a slightly smaller increase than Group revenue.

­Business was dynamic in the Middle East/Africa region. There, the revenue of

Share of consolidated revenue

Germany

Central Europe (excluding Germany) Western Europe

Eastern Europe

Central Asia (CIS)

Middle East/Africa

Asia-Pacific

China

South America/Mexico

North and Central America

Total

1 Jan to 31 Mar	1 Jan to 31 Mar	Change
2024		2023
€ million	%	€ million	%	%
118..2	9..5	135..4	11..3	-12..7
77..5	6..2	40..8	3..4	+90..0
169..8	13..6	193..8	16..2	-12..4
64..3	5..2	57..1	4..8	+12..6
32..8	2..6	8..9	0..7	+268..5
137..9	11..1	115..8	9..7	+19..1
138..8	11..1	157..4	13..1	-11..8
91..9	7..4	71..8	6..0	+28..0
130..1	10..4	124..0	10..3	+4..9
285..8	22..9	293..8	24..5	-2..8
1,247.1	100.0	1,198.8	100.0	+4.0