Krones Ag Adr

Good afternoon and a warm welcome from my side. My name is Olaf Scholz, head of group investor relations here at Crohn's. In a macroeconomic environment marked by further uncertainties, Crohn's has confirmed the financial targets for 26 and also increased order intake and profitability in the first half year 26. This was the headline of the press release this morning. And now... Thomas Ricker for the first time in his role as CEO of Crohn's and Uta Anders will give you more details about the situation at Crohn's and also explain the figures of the first half year 26. After the presentation you will have the opportunity to ask questions. I think you also know how the Q&A session works here at Crohn's. Please use the function raise your hands in Teams or send me just a short email and then I will hand over to you. Additionally, Additionally, please be reminded that this meeting will not be recorded and that it is also not allowed to record the meeting. Please also deactivate any functions of recording at Teams. So I think let's start and so I will hand over to Thomas Ricker. Thomas, the floor is yours.

Thank you very much, Olaf. Dear ladies and gentlemen, It's really a pleasure for me for the first time in my new role as a CEO to present the half-year results 2026 of our company Crohn's together with my colleague Uta Anders. As I mentioned already in the Q1 call where I introduced myself, I'm very much looking forward to future direct exchange and close cooperation with the capital market and therefore with you. The current situation in the world is challenging. Thank you very much. Thank you very much. So I will just jump over this, summarize, because we will go in detail in the figures and in all these information afterwards. The highlights for the first half year in 2026, also in a nutshell, because we will go more deep in in the following presentation, water intake in totally at 2,850,000,000. The revenue grows plus 1.8%. EBITDA margin on a level of 10.8% and a free cash flow currently of minus 31 million. Going to the order intake, you have seen the figures. Even the second quarter was on a plus compared to the last year of around 3.5%. In a sum, in the first half year, the growth of the order intake was by plus 4.5%. And it's very important for us the book-to-bill ratio after the six months at the level of 1.05. In general, as I mentioned already, the uncertainties on the market are still on a high level. Despite that, we could manage it. And we have our global presence. We are more or less everywhere, and we are in close cooperation with our customers. to handle their projects in the best possible way. As you can also see, the strongest growth currently have been in North and South America, also in Eastern Europe. We have quite a stable situation on the water intake side in Europe and in Asia Pacific, and currently a bit of a decreasing water intake compared to last year in Middle East, which is quite explainable, and in China. and we are expecting a catch-up effect also in the second half of the year also in that regions. China in the first half year is always a bit influenced from the Chinese New Year, which is in February. So up to now, as said, we could manage the uncertainties and especially the huge cost pressure on the raw material side of our customers quite well. and the huge pressure on the cost side are mainly driven from the energy costs and these are strongly influenced from the current situation in the Near East in the Iranian war. The order backlog raised a bit up and we are still on a very good level of around 4.3 billion. The delivery times is stabilizing at really a very competitive level of around 30 weeks and the order backlog in combination with the order intake also from the first half ensures our production capacity utilization largely for the full year 2026. If we come to the revenue distribution, It's still a very good balance between the emerging markets and the developed markets. A bit driven now from the developed markets, 52% in that area and 48% in the emerging markets. What you can see here is that North and Central America dropped down last year because of the shock of the tariffs. It's catching up again. That's good. Also South America, I would say, is on a stable level if you see the absolute values. Europe and Middle East, following the order intake situation from last year, has a very strong development in the positive side. And the Eastern Europe, Central Asia, China, and Asia-Pacific regions are on a, I would say, stable and very good level from our revenue split. So far from my side, and then I would hand over to Uta.

Thank you, Thomas. I mean, as always, I will start with revenue development. I mean, as you can see, speaking about year to date, We are at 2.715 as reported and we have about 60 million FX effects included in here, mainly coming from the US dollars and FX adjusted as you can see 2.775 billion. This is the growth by 1.8%. As you may recall, we had 1.4 in the first quarter. So we have been catching up slightly to our 3 to 5% growth guidance, which I will come to in a second. Quarter over quarter, you can also see that we had a slight increase. And as I said, already in the quarter, about 10 million FX effects. I mentioned that already we confirm the guidance three to five percent for the current fiscal year we are very aware that the second half must be stronger than the first half in order to achieve that but we have also shown for instance last year that we are capable of delivering that and also the production schedule confirms that all our production sites or customer sites installation and permission schedules Backlog, but also recurring revenues. So that's why we are confident that we can confirm our growth guidance. Coming to EBITDA, you can see for the fiscal year today, 292.8 million EBITDA, which is a slight increase compared to last year. In absolute numbers, if I look at relative numbers, we increased by 0.2 percentage points. From 10.6 to 10.8. And this is true for the fiscal year to date, but the same is true for the quarter because also here we had 10.6% margin. Also here, we confirm our guidance 10.7 to 11.1% EBITDA margin range for 2026. EBT. 197.7 million you can see yourself it is a decrease compared to last year which is still kind of let's call it carry over effect from the first quarter because here we had negative financial results as well as higher depreciation you can see in the second quarter we have increased slightly our EBT but all in all also here this is in line with our expectations as we are also rising it on the lower end on the left side of the page. Moving on with personal and material expense, the picture is very similar to what we have presented already in the first quarter. Let's start with materially expense. I mean, you can see yourself, it is an absolute numbers decrease compared to last year, as well as in the ratio 45.1%, which is a result of the material cost reductions from last year. You may recall that we had also talked on the conferences about the cost agreements or the agreements we had done with our suppliers in 2025, which now carries through to 2026. And this is one reason, but also price levels. So those are the reasons for the low material cost ratio. We assume that this is going to be normalized a little bit throughout the fiscal year. The same is true for normalization, but also similarity to the first quarter for the personal cost ratio. I mean, you can see yourself 29 million in addition, which is the result of, on the one hand, an average higher FTE number, so employee number in comparison to the same period last year, but also tariffs or merit increases. 32.9%. As we have shown last year, we expect this to go down towards the most 30% throughout the fiscal year. Employees, actually, there's not a lot to tell this time. As you can see, we are at approximately the same level as we had end of the fiscal year, 21,249, 90 left. The reduction is mainly in Germany, but still the development and also if I look at the different employee groups, which we always highlighted, it is very similar to what we had. And also that is in line with our expectations. Now let's move on to the segments of filling and packaging technology. I always tell you it is in line with group development. I mean, because it is the largest segment. and speaking about revenue I mean 2293 reported 2342 FX adjusted and FX adjusted we show a growth of 1.8% which is already very close to our 2 to 4% growth guidance which we confirm and speaking about EBITDA margin you see a nice development also this quarter coming from 10.8 to 11.2% for year to date and also here we are within our guidance of 11 to 11.5% and we confirm both growth and EBITDA margin guidance. Process technology. Yeah, the story is very similar to what we had seen the last years, only limited growth, but good margin or very good margin. And if you look at the year-to-date numbers, you can see that both in FX adjusted, but also in reported numbers, we are below the last year, which is also related to delays of turnkey projects also in last year, but also at the beginning of this year. but higher or very good revenue in what we call units and components. I mean, pumps and valves, for instance, which is also the driver for the margin acceleration, the 10.6%, very similar to last year, above the guidance of 9% to 10%. To summarize it, we also here confirm the guidance, 0% to 5% growth and revenue growth in 9% to 10% EBITDA margins. Last but not least, Intranogistic, nice growth, 60 million reported figure, 6 million adjustment for FX, so we come to 9.7% revenue growth, FX adjusted, which is already on the upper end of the guidance. On the other hand, also due to mixed issues, there is still some way to go to achieve the EBITDA margin of 7.5% to 8.5%. We are only at 5.3%, but also here to summarize it, we confirm the guidance for both revenue growth and EBITDA margins. Ag Adr, Christoph Klenk, Bulent Bayraktar, Olaf Scholz, Ralf Goldbrunner, Roland Pokorny, Ingrid Reuschl and Free Credit Lines, as you can see, close to 900 million. So that gives us sufficient room to maneuver for the goals we are expecting towards 2020 e-targets also, but also for everything which is going around economic volatility. Equity, also here, life development, 64 million in addition equity, despite of the fact that we paid out 88.5 million dividends, so we had a net income this quarter of 139 million. If I look at the ratio, also there, life development up to 43.6, so 1.4 percentage points, and this is because equity increased by 3%, whereas the total assets and liabilities more or less stayed stable at 5%. 5 billion so up to 43.6 now let's come to working capital Starting first of all with the middle part of the page, I mean, as you can see yourself, 18.5%. So we are higher than we were last year. And also, if I look at absolute numbers, we are holding or we were holding end of June a working capital of 1117 billion Euro, which is an increase by 180 compared to end of last year, which, as we will see on the next slide, is the main driver for the free cash flow development. Let's look at the different components of working capital. Receiver with POC, I mean, you can see from relative numbers, but also from absolute numbers, very stable, 35, 36%, and it's about 2 billion in absolute terms. Payables, they increased a little bit compared to Q1, where we have highlighted that in particular, and we are very similar to where we were last year at the same time, and we have about 770 million accounts payables, lower than end of December, but that's also normal course of the business. Inventory, as you can see, and which we had already talked about in Q1, 13.5%, so it is higher. Two reasons. Reason number one, safety stock, as we have also highlighted in Q1 already. Reason number two is also a bit regional. We are holding a little bit more inventory in North America, also to be able to deliver out of North America. And that's one of the main reasons for that. And last but not least, received repayments. 15.8 so very similar to end of the fiscal year but much lower than last year at the same time and this is because and I had mentioned that already that with lower delivery times we are moving faster also the orders and then the down payments move from the liability side to the asset side so that all in all the overall development of working capital and as I said, it increased by 180 million and we can see the 180 million, 181.1 to be precise, also on the third line of the free cash flow statement for quarter two, not quarter two, year to date. Let's first of all look through the fiscal year. I mean, I already reported on EBT. You can read it. Other non-cash changes, mainly depreciation of about 90, 100 million. and change in working capital, I commented other assets and liabilities. This is mainly income tax payments, close to 60 million. And then moving on CapEx, that is a little bit different than last year. We are higher in CapEx this year than we were at the same time last year, 3.6%. And this is because we have quite some large investment projects which just pay out regularly. Other is not significant, free cash flow before M&A minus 30.8 and M&A activities 8 million, that's the earn out we paid out in the first half of the fiscal year. Financing activities, others, yeah, that's the dividend mainly, 88.5 million and then the change in cash as you can read and then coming to cash. And if I just shortly compare last year to this year, I want to highlight two things. The change comes mainly, the change in free cash flow, mainly from higher change in working capital, which we expect to normalize throughout the fiscal year and more capex. So those are the major changes. And now I will take a slight detour, slight detour, because I want to announce already something which we have closed in July. That's a small acquisition which we have done now in July. We are actually in the closing phase right now. It is a very small business. I mean, 10 million revenue. You can read it yourself. It's Vero Precision Tool Company. And this is in addition to our nets. Some of you may recall that we have talked about closing the loop. We have talked about advanced modding technologies as part of filling and packaging. So here they are producing modes and tools for special purpose caps. So it is closing a technology gap which we had in combination between MHT and NetStyle. Very small business, 10 million assets, 50 employees margin accretive. and you will see the payout in the third quarter of 2026. And then now let's go back to the presentation. This slide you also know, I mean, I talked about the negative free cash flow, but I also talked about that we expect this to normalize what the fiscal use of same information as I had given to you in the first quarter, but also Q4 2025. Rossi, 17.7%. They're very similar. You remember that I always talk about nominator and denominator. What we see here is that the EBIT only increased by 1.9% for the reasons also mentioned already when I talked about EBT and capital employed increased by 9.8%. We expect a certain normalization, in particular in working capital, but also an increase in EBIT. So that's why also here we expect to confirm our guidance for 2026, 19 to 20%. So far from my side, and now I hand over to Thomas again.