KRONES AG

Quarterly Report • Nov 5, 2024

Quarterly statement for the period
from 1 January to 30 September 2024

1

TO OUR SHAREHOLDERS

ASSETS, FINANCIAL POSITION, AND RESULTS OF OPERATIONS

3
INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

TO OUR SHAREHOLDERS

Highlights and key figures ..... 4
Letter from the Executive Board ..... 5
The Krones share. ..... 6

Highlights and key figures

Krones continues on profitable growth track significant increase in revenue and profitability

• At $€ 1,323.2$ million, the order intake from July to September 2024 exceeded the preceding quarter ( $€ 1,310.2$ million) and almost matched the high level of the third quarter of 2023 ( $€ 1,327.7$ million). Order intake in the first nine months of 2024 increased slightly compared to the strong previous year ( $€ 4,113.6$ million) to $€ 4,116.1$ million. At $€ 4,363.6$ million, the order backlog was 6.6\% higher at the end of September 2024 than a year earlier.
• Krones' revenue growth continued in the third quarter ( +13.2\%). In the first nine months of 2024, Krones increased revenue by 11.2\% year on year to $€ 3,874.8$ million, which is within the growth forecast for the full year 2024.
• Despite higher material and personnel costs, the ERTDA margin increased due to the company's efficiency gains, from $9.5 \%$ in the previous year to $10.1 \%$. This is within the guidance range for the full year 2024.
• The company very substantially improved free cash flow (before M\&A activities) between January and September by $€ 311.1$ million to $+€ 145.0$ million (previous year: -€166.1 million).
• Based on the positive development in the first three quarters, Krones has confirmed the guidance for the full year 2024. The company expects revenue growth of $9 \%$ to $13 \%$, an ERTDA margin of $9.8 \%$ to $10.3 \%$ and ROCE of $17 \%$ to $19 \%$.

Key figures for Q1-Q3 2024		$1 \mathrm{Jan}-30$ Sep 2024	$1 \mathrm{Jan}-30$ Sep 2023	Change
Revenue	€ million	3,874.8	3,485.6	+11.2\%
Order intake	€ million	4,116.1	4,113.6	+0.1\%
Order backlog at 30 Sep	€ million	4,363.6	4,094.4	+6.6\%
ERTOA	€ million	391.1	332.3	+17.7\%
ERTOA margin	\%	10.1	9.5	$+0.6 \mathrm{~m}^{2}$
ERT	€ million	268.1	217.9	+23.0\%
ERT	€ million	273.6	235.4	+17.1\%
ERT margin	\%	7.1	6.8	$+0.3 \mathrm{~m}^{2}$
Consolidated net income	€ million	200.7	175.7	+14.2\%
Earnings per share	€	6.35	5.56	+14.2\%
Capital expenditure for PPEs and
intangible assets	€ million	106.2	87.7	$+€ 28.5$ million
Free cash flow	€ million	$-33.9$	$-280.6$	$+€ 246.7$ million
Net cash at 30 Sep**	€ million	301.8	284.8	$+€ 17.1$ million
ROCE	\%	18.3	17.0	$+1.3 \mathrm{~m}^{2}$
Working capital to revenue***	\%	17.1	17.3	$-0.2 \mathrm{~m}^{2}$
Employees at 30 Sep
Worldwide		20,025	18,258	+1,767
Germany		11,119	10,553	+566
Outside Germany		8,906	7,705	+1,201
* $k$ = percentage points ** Cash and cash equivalents less bank debt *** Average of last 4 quarters
Key figures for Q3 2024		$1 \mathrm{Jul}-30$ Sep 2024	$1 \mathrm{Jul}-30$ Sep 2023	Change
Revenue	€ million	1,318.7	1,164.7	+13.2\%
Order intake	€ million	1,323.2	1,327.7	$-0.3 \%$
ERTOA	€ million	134.9	110.9	+21.6\%
ERTOA margin	\%	10.2	9.5	$+0.7 \mathrm{~m}^{2}$
ERT	€ million	89.6	74.8	+19.8\%
ERT	€ million	89.9	74.3	+21.0\%
ERT margin	\%	6.8	6.4	+0.4 m $^{2}$
Consolidated net income	€ million	65.7	54.3	+21.0\%
Earnings per share	€	2.08	1.72	+20.9\%

Letter from the Executive Board

Dear shareholders and friends of Krones,

After a positive first half of the year, the third quarter of 2024 also went well for Krones. Despite critical overall economic conditions, the willingness of customers from the beverage industry to invest remains good. This underscores the fact that Krones operates in stable, growing markets that are less affected by economic fluctuations.

The global political and economic environment nevertheless remains challenging. This is demonstrated by the latest geopolitical conflicts, which harbour potential risks and in a worst-case scenario could have a negative impact on supply chains and energy and commodity prices and hence on the global economy. The experts at the International Monetary Fund (IMF) forecast relatively low global economic growth at an annual rate of $3.2 \%$ this year and in 2025. That is well below the average growth of $3.8 \%$ for the global economy (2000-2019).

Very positive business figures nine months into the year

Krones' third-quarter order intake was slightly up on the previous quarter, reaching the good level of $€ 1.32$ billion. Revenue also developed very positively. We were able to further increase volumes in production and our after-sales business in the first three quarters, and to process and complete orders at a faster rate. In the previous year, our productivity suffered at times from the shortage of electrical components. From January to September 2024, revenue went up by 11.2\% year on year to $€ 3.9$ billion. We improved the EBITDA margin to 10.1\% (previous year: 9.5\%). Overall, after the first nine months, we can confirm our full-year group financial targets for 2024.

High level of investment for a successful future

Krones plans to continue its profitable growth in the medium to long term. This is reflected in the mid-term targets for 2028, which we published in early July 2024. Krones plans to increase consolidated revenue to around $€ 7$ billion by 2028. The mid-term target for the EBITDA margin is between 11\% and 15\% and the mid-term target for BOCF is more than 20\%. To achieve these ambitious targets, we will be investing heavily over the coming years in the expansion of our global footprint and in our German sites. In this way, we are laying the basis to ensure that we achieve the planned growth profitably. With the same investment, we are increasing the company's flexibility and resilience so that we can respond quickly and flexibly to negative exogenous effects.

Krones awarded gold for sustainability performance

The high level of investment will also help us achieve our net zero emissions target by 2040. The gold medal from EcoVadis, an internationally recognised sustainability rating agency, testifies to the fact that we are on the right track in terms of sustainability performance. In terms of sustainability, Krones ranks among the top two percent of its industry.

The award inspires us to continue consistently living and implementing our corporate vision of "Solutions beyond tomorrow". All Krones employees are working with competence and high motivation to make our vision a reality: Sustainable and affordable beverages, food and essentials for everyone and everywhere.

Uniscaple

The Krones share

DAX climbs to new highs, Krones shares significantly outperform market

Despite geopolitical uncertainties and a subdued economic outlook, the world's most prominent stock markets rose significantly in the first nine months of 2024. The dominant focus of the markets and the main price driver was the expected turnaround in interest rates in the US and Europe. As a look at the performance of the DAX in the first nine months of 2024 shows, severe temporary losses were quickly regained.

Germany's best-known share index started 2024 at around 16,750 points. After a short period of weakness, the DAX rose significantly, driven by the prospect of falling interest rates. At the end of March, the DAX was up $10.4 \%$ on the beginning of the year at 18,492 points. From April to June, Germany's leading index consolidated, and at 18,235 points at the end of June it was slightly below the level at the beginning of the quarter. The DAX remained relatively stable within a narrow range until the end of July. However, market volatility then increased significantly.

Krones share data	Q2-Q3 2024	Q2-Q3 2023
Earnings per share (€)	6.35	5.56
High (€)	131.80	118.60
Low (€)	108.30	94.40
Price at 30 September (€)	129.00	97.55
Market capitalisation at 30 September (€ billion)	4.08	3.08

[^0]

In early August, stock prices collapsed around the world. The DAX slid from around 18,500 points to around 17,000 points within a few days. The decline was triggered by an interest rate hike in Japan and investor fears that the Federal Reserve would be slow to lower interest rates and the US economy would suffer as a result. However, these fears quickly dissipated and equity markets continued their record run. On 19 September, the DAX passed the 19,000 mark for the first time. The index reached its new all-time high of 19,350 during the course of the day on September 30. It ended the last trading day of the third quarter at 19,325 points, having risen by $6.0 \%$ over the quarter. The DAX gained $15.4 \%$ since the beginning of the year.

With a share price gain of 15.4\%, Krones shares clearly outperformed the market in the first nine months of 2024. The woax lost 1.0\% in the same period.

[^0]: Share price data source: Attra (chasing price)

The upward trend in Krones shares from 2023 continued in the first half of 2024. It then further accelerated between July and September. Our share price benefited from a generally positive market environment, our strong financial results and the publication of our mid-term targets for 2028.

Krones shares began the 2024 stock market year at €IIL.80. They reached their lowest closing price of the first nine months at €108.30 on 5 January. Our shares quickly recovered from that level, rising to around $€{117}$ by the end of January. Following the publication of the preliminary full-year results for 2023 and the positive outlook for 2024, our share price started a strong upward development in late February. The share price surpassed its 2018 all-time high of $€{122.80}$ on 26 March before closing the first quarter of 2024 at €122.70.

Through the second quarter, our share price moved sideways overall, with moderate ups and downs. On 8 May, it reached its highest level of the first nine months of 2024 and also a new all-time high at $€_{131.80}$. Some selling pressure followed in June, partly due to the overall market. On 30 June, our shares closed at €117.20.

The beginning of the third quarter saw a significant rise in the Krones share price. A key source of impetus was the publication of our mid-term targets for 2028 at the Capital Market Day on 3 July. Many analysts commented positively after this event. At the beginning of August, our share price briefly came under pressure due to weakness in the broader market. Krones shares recovered quickly, however, and rose sharply through to the end of the third quarter. On 30 September, Krones shares stood at €129.00, up 10.1\% on the beginning of the quarter. The gain from January to September 2024 was 15.4\%. Including the $€_{2.20}$ per share dividend, the value of the Krones share increased by 17.4\% since the beginning of the year. This means that our shares significantly outperformed the mDAX, which fell in the first nine months by 1.0\%.

Krones Capital Market Day

Krones held a Capital Market Day for analysts and institutional investors in Neutraubling on 3 July 2024. Focal topics comprised the company's strategy and growth prospects together with the presentation of the mid-term targets for 2028. The Executive Board detailed how Krones is responding to customer needs and seizing the opportunities presented by the stable growth of the food and beverage market. During a tour of the production facility, attendees at the Capital Market Day were able to see for themselves how Krones' innovative machines and lines are manufactured and tested.

Shareholder structure

Krones' shareholder structure remained largely unchanged in the first nine months of 2024 compared to the end of 2023. At 30 September 2024, Familie Kronseder Konsortium GbR held the majority of Krones AG's shares, with 51.9\%. 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 third quarter by the Schadeberg family.

Shareholder structure (as of 30 September 2024)

Key data for the Krones share
Number of shares
31,593,072
German securities identification number
000
0000000000000
KEN $\square$
KENs ticker symbol

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ASSETS, FINANCIAL POSITION, AND RESULTS OF OPERATIONS

Revenue ..... 9
Order intake ..... 11
Order backlog ..... 12
Earnings ..... 13
Statement of cash flows ..... 17
Assets and capital structure ..... 19
Report from the segments ..... 21
Employees ..... 24
Report on expected developments ..... 25

Revenue

Revenue increased by $11.2 \%$ in the first three quarters of 2024

Knows grew strongly in the

first three quarters of 2024 Revenue rose by $11.2 \%$ to $€ 3,874.8$ million.

Krones continued its strong growth in the third quarter of 2024. Revenue went up by 13.2\% year on year between July and September, from $€ 1,164.7$ million to $€ 1,318.7$ million. The company benefited from greater efficiency in production, which was also further improved by good material availability. In the same period of the previous year, production output was still affected at times by temporarily tight supplies of electrical components. Part of the third-quarter revenue growth is due to the acquisition

of Netstal Maschinen AG, whose revenue Krones has consolidated since 28 March 2024.

From January to September 2024, Krones' revenue was up 11.2\% year on year, rising from $€{3,485.6}$ million to $€{3,824.8}$ million. New machinery revenue grew more strongly than the overall figure. The revenue growth in the first nine months of 2024 mainly reflects volume effects. Krones' revenue was not materially affected by exchange rates or divestments in the reporting period. In total, even without the Netstal acquisition, growth in the first three quarters was therefore within the full-year 2024 guidance range of $5 \%$ to $15 \%$. The guidance includes the effects of the acquisition of Netstal Maschinen AG.

Revenue by segment from 1 Jan to 30 Sep 2024	Revenue by segment from 1 Jan to 30 Sep 2023
Intraspistles	Intraspistles
$5.7 \%$ ( $€ 219.5$ million)	$7.6 \%$ ( $€ 266.4$ million)
Process Technology	Process Technology
$9.8 \%$ ( $€ 278.1$ million)	$9.7 \%$ ( $€ 238.4$ million)
Filling and	Filling and
Packaging Technology	Packaging Technology
$84.5 \%$ ( $€ 3,277.2$ million)	$82.7 \%$ ( $€ 2,880.8$ million)

Revenue by region

Revenue in Germany remained very stable overall in the first three quarters of 2024, rising slightly by $1.5 \%$ to $€ 341.0$ million (previous year: $€ 335.9$ million). As a percentage of consolidated revenue in the first nine months, this represented a decrease from $9.6 \%$ a year earlier to $8.8 \%$.

Since the second quarter of 2024, Krones has no longer reported revenue performance in Central Europe and Western Europe separately, but combines revenue from the two regions. From January to September 2024, revenue in Central and Western Europe increased by $9.7 \%$ to $€ 725.0$ million (previous year: $€ 660.6$ million). The pace of growth was significantly higher in Eastern Europe, where revenue climbed in the reporting period by $37.4 \%$ to $€ 186.7$ million (previous year: $€ 135.9$ million). In total, Krones' revenue in Europe (excluding Germany) went up by more than consolidated revenue in the first nine months of 2024, rising by $14.5 \%$ from $€ 736.5$ million in the previous year to $€ 911.7$ million. As a percentage of total revenue, it increased in the reporting period to $23.5 \%$ (previous year: 22.9\%).

With a $2.5 \%$ share of consolidated revenue, the Central Asia region now has only a very minor influence on the company's business. Revenue in that region improved in the first three quarters from $€ 27.4$ million in the previous year to $€ 96.3$ million.

Of Krones' remaining non-European markets, the Middle East/Africa region showed the strongest growth in the first nine months of 2024. At $€ 443.1$ million, revenue in the region exceeded the previous year's figure ( $€ 332.6$ million) by 33.2\%. Krones' revenue in China also increased significantly in the reporting period. Revenue there improved by $24.4 \%$ to $€ 307.5$ million (previous year: $€ 247.2$ million), partly due to pent up investment needs following the Covid pandemic. The company's business was slightly down in the Asia/Pacific region. There, revenue decreased in the first three quarters of 2024 by $6.3 \%$ to $€ 451.5$ million (previous year: $€ 481.6$ million). It should be noted that Krones recorded the highest percentage growth in the full year 2023 in the Asia/Pacific sales region.

Revenue in the large North and Central America sales region remained stable at a very high level in the first nine months of 2024. At $€ 901.9$ million, revenue there fell only $0.7 \%$ short of the previous year's $€ 908.5$ million. Business in South America/ Mexico continued to grow very dynamically in the reporting period. From January to September 2024, revenue climbed by $18.5 \%$ year on year to $€ 431.8$ million (previous year: $€ 355.9$ million).

In total, the revenue generated by Krones in non-European markets (excluding Central Asia) improved in the first nine months of 2024 by $8.6 \%$ year on year to $€ 2,525.8$ million.

Krones' internationally balanced customer and revenue mix is one of its strategic strengths. Between January and September 2024, the company generated $49.2 \%$ (previous year: $45.3 \%$ ) of Group revenue in emerging and developing markets. The share of revenue generated in industrialised economies was 50.8\% (previous year: $54.7 \%$ ).

Krones Group revenue by region

Share of consolidated revenue	1 Jan to 30 Sep 2024		1 Jan to 30 Sep 2023		Change
	€ million	\%	€ million	\%	\%
Germany	341.0	8.8	335.9	9.6	$+1.5$
Central and Western Europe	725.0	18.7	660.6	19.0	$+9.7$
Eastern Europe	186.7	4.8	135.9	3.9	$+37.4$
Central Asia	96.3	2.5	27.4	0.8	$+251.5$
Middle East/Africa	443.1	11.4	332.6	9.5	$+33.2$
Asia-Pacific	451.5	11.7	481.6	13.8	$-6.3$
China	307.5	7.9	247.2	7.1	$+24.4$
South America/Mexico	421.8	10.9	355.9	10.2	$+18.5$
North and Central America	901.9	23.3	908.5	26.1	$-0.7$
Total	3,874.8	100.0	3,485.6	100.0	$+11.2$

Order intake

Order intake up in third quarter compared to previous quarter

Demand for Krones' products and services developed positiverly in the first three quarters. At $€ 4,116.1$ million, order intake was slightly higher than the previous year's high figure ( $€ 4,113.6$ million).

Despite critical overall economic conditions, the willingness of customers from the beverage industry to invest remains good. We benefit from this as a global leader with a broad and innovative range of products and services.

At $€ 1,323.2$ million, the order intake from July to September 2024 increased slightly relative to the second quarter ( $€ 1,310.2$ million) and nearly matched the high level of the third quarter of the previous year ( $€ 1,327.7$ million). In total over the first nine months of 2024, Krones recorded an order intake of $€ 4,116.1$ mil-

Order intake from 1 Jan to 30 Sep ( $K$ million)

lion (previous year: $€ 4,03.6$ million). Customer order activity therefore remained stable at a high level in the first three quarters of 2024. Exchange rates, acquisitions and divestments did not have a material impact on the contract value of orders in the reporting period.

From January to September 2024, order intake showed the strongest year-onyear improvement in the Europe and Middle East/Africa regions. The order intake in North, Central and South America remained around the same high level as in the previous year. The contract value of orders in Asia/Pacific and China was below the Group level. However, it should be noted that order intake there was at a very high level in the previous year's period.

Order intake in Q3 ( $K$ million)

Order backlog

Krones has orders on hand totalling $€ 4.36$ billion

The very large order back-
The very large order back-
log gives Krones planning security for the coming quarters.
log gives Krones planning security for the coming quarters.
the strong revenue growth. The book-to-bill ratio for the first three quarters of 2024 is 1.06. At the end of September 2024, Krones' order backlog totalled $€ 4.363 .6$ million. The order back$\log$ thus grew by $5.9 \%$ relative to the 2023 year-end ( $€ 4,122.3$ million). Relative to the previous year's figure of $€ 4,094.4$ million, the increase was $6.6 \%$.

The very large order backlog enhances Krones' planning certainty and ensures production capacity utilisation through to the end of 2025.

Earnings

Krones continues on profitable growth track - ERITDA margin increased to $10.1 \%$

Krones further improved profitability in the first nine months of 2024, despite persistently high personnel and material costs. This was mainly due to good production capacity utilisation and the company's increased overall efficiency.

Earnings before interest, taxes, depreciation and amortisation (ERITDA) rose by 17.7\% year on year, from $€ 332.3$ million to $€ 391.1$ million in the first nine months of 2024. The eritda margin increased significantly from 9.5\% in the previous year to 10.1\% in the reporting period. This placed it within the full-year 2024 guidance range of $9.8 \%$ to $10.3 \%$.

Earnings before taxes (ERT) rose at a similar rate to ERITDA in the first three quarters of 2024. At $€ 275.6$ million, ERT was 17.1\% higher than in the previous year ( $€ 235.4$ million). The ERT margin improved from $6.8 \%$ to 7.1\%. The tax rate in-

creased slightly in the reporting period compared to the previous year. As a result, consolidated net income did not increase quite as strongly as ERT, rising by $14.2 \%$ to $€ 200.7$ million (previous year: $€ 775.7$ million). From January to September 2024, earnings per share climbed from $€ 3.36$ to $€ 6.35$.

With an ERTDA margin of $10.1 \%$ in the first three quarters, Krones has laid a good basis for achieving its margin target of 9.6\% to 10.3\% for the full year 2024. The income statement was not materially affected in the reporting period by exchange rates, acquisitions or
disastrozents.

In the third quarter of 2024, the company increased ERITDA by 21.6\% year on year, from $€ 110.9$ million to $€ 154.9$ million. The eritda margin went up from 9.5\% to 10.2\%. ERT also improved by a significant 21.0\%, from $€ 74.3$ million to $€ 89.9$ million. This corresponds to an ERT margin of 6.8\% (previous year: 6.4\%). Krones generated consolidated net income of $€ 65.7$ million in the third quarter of 2024, up 21.0\% year on year (previous year: $€ 34.3$ million). Earnings per share climbed to $€ 2.08$ (previous year: $€ 1.72$ ).

$\underline{6}$ million	$\begin{gathered} 2024 \ \text { I. Jan-30 Sep } \end{gathered}$	$\begin{gathered} 2023 \ \text { I. Jan-30 Sep } \end{gathered}$	Change \%
Revenue	3,874.8	3,485.6	$+11.2$
Changes in inventories of finished goods and work in progress	17.2	2.6	-
Total operating performance	3,892.0	3,488.2	$+11.6$
Goods and services purchased	$-1,909.3$	$-1,763.3$	$+8.3$
Personnel expenses	$-1,167.6$	$-1,034.5$	$+12.9$
Other operating income/expenses and own work capitalised	$-424.0$	$-358.1$	$+18.4$
eorros	391.1	332.3	$+17.7$
Depreciation and amortisation on fixed assets	$-123.0$	$-114.4$	$+7.5$
eor	268.1	217.9	$+23.0$
Financial income/expense	7.5	17.5	-
eor	275.6	235.4	$+17.1$
Income tax	$-74.9$	$-59.7$	$+25.5$
Consolidated net income	200.7	175.7	$+14.2$

Between January and September 2024, Krones increased revenue and total operating performance as planned compared to the same period of the previous year. In the first nine months, the company generated revenue growth of 11.2\% to $€ 3,874.8$ million. Total operating performance rose slightly more, increasing by $11.6 \%$ to $€ 3,892.0$ million. This is due to a larger, $€ 17.2$ million build up in finished goods and work in progress in the reporting period (previous year: $€ 2.6$ million).

Cost of goods and services purchased increased in the first three quarters of 2024 by $8.3 \%$ to $€ 1,909.3$ million, less than the rise in total operating performance. Krones offset high material costs in the reporting period thanks to

Net income from 1 Jan to 30 Sep ( 8 million)
Net income in Q3 ( 8 million)

Earnings per share from 1 Jan to 30 Sep (€)

million), which reflected the positive impact of adjustments due to contingent purchase price payments. As the two effects in the previous year almost cancelled each other out, earnings before taxes (ERT) in 2023 was unaffected by them. ERT consequently rose by $17.1 \%$ in the reporting period to $€ 275.6$ million (previous year: $€ 235.4$ million), almost in line with EBITDA. The ERT margin increased from $6.8 \%$ in the previous year to 7.1\%. As the company's tax rate of $27.2 \%$ in the first three quarters was higher than in the prior-year period ( $25.4 \%$ ), consolidated net income improved less strongly by $14.2 \%$ to $€ 200.7$ million.

Free cash flow without $m \AA 1.8$ from 1.180 to 30 bsp ( 8 million)
2020
2021
2022

Working capital as a percentage of revenue improved from $17.3 \%$ to $17.1 \%$
Krones increased working capital by €188.1 million in the reporting period. A slight increase in contract assets, inventories and trade receivables contributed here. Slightly lower trade payables and a decrease in contract liabilities also added to working capital.

Krones improved average working capital over the past four quarters as a percentage of revenue to $17.1 \%$ (previous year: 17.3\%). The working capital to revenue ratio was $18.7 \%$ as of the 30 September reporting date (previous year: 20.2\%).

Free cash flow (excluding M\&A) improved very substantially by $€ 311.1$ million

Mainly due to the significantly smaller increase in working capital, Krones' cash flow from operating activities increased very significantly by $€ 337.9$ million and free cash flow (excluding m\&A activities) by $€ 311.1$ million in the first three quarters of 2024.

Krones invested a total of $€ 106.2$ million in property, plant and equipment and intangible assets in the reporting period. As planned, this is above the pri-
or-year figure of $€ 87.7$ million. The company spent an additional $€ 160.2$ million in the reporting period on the acquisition of Netstal Maschinen AG. In addition, Krones made a deferred purchase price payment of $€ 13.4$ million for Ampco Pumps and acquired interests in the Portuguese Perfinox Group ( $€ 5.3$ million). Despite the cash outflow from M\&A activities totaling $€ 178.9$ million, Krones improved free cash flow by

Working capital to revenue from 1 Jan to 30 Sep (\%, average of last four quarters)

$€ 246.7$ million to - $€ 33.9$ million between January and September 2024 (previous year: - $€ 280.6$ million). Excluding M\&A activities, free cash flow increased even more significantly by $€ 311.1$ million, from a negative $€ 166.1$ million to a positive $€ 145.0$ million.

The company had a total cash outflow from financing activities of $€ 101.5$ million between January and September 2024 (previous year: $€ 83.3$ million). In the reporting period, this item included the cash outflow from the dividend payout of $€ 69.5$ million (previous year: $€ 35.3$ million), the repayment of lease liabilities in the amount of $€ 31.5$ million (previous year: $€ 27.0$ million) and the repayment of bank debt in the amount of $€ 0.5$ million (previous year: $€ 1.0$ million). Krones had cash and cash equivalents totalling $€ 305.1$ million at 30 September 2024 (previous year: $€ 288.8$ million).

Capital expenditure for $m \mathrm{~B} \alpha$ and intagible assets from 1 Jan to 30 Sep (€ million)

Assets and capital structure

$\in$ milion	30 Sep 2024	31 Dec 2023	30 Sep 2023	31 Dec 2022
Non-current assets	1,477	1,327	1,287	1,164
of which fixed assets	1,393	1,241	1,284	1,064
Current assets	3,053	3,150	2,949	3,007
of which cash and equivalents	305	448	289	675
Equity	1,835	1,715	1,684	1,598
Total debt	2,695	2,762	2,552	2,573
Non-current liabilities	420	410	373	375
Current liabilities	2,275	2,352	2,179	2,198
Total	4,530	4,477	4,236	4,171

Krones' total assets now by just 1.2\% in the first nine months of 2024, a significantly smaller increase than the rise in total operating performance ( $\times 22.6 \%$ ).

Despite the growth in business volume, Krones' total assets increased only marginally by 1.2\% in the first three quarters of 2024 and thus by less than the $11.6 \%$ rise in total operating performance.

Total assets came to $€ 4,529.9$ million as of 30 September 2024 (31 December 2023: $€ 4,477.1$ million). The slight increase was mostly due to the rise in fixed assets and equity.

Krones' non-current assets showed a substantial 11.3\% increase in the reporting period to $€ 1,477.1$ million (31 December 2023: $€ 1,327.4$ million). The growth related to fixed assets, which increased by $€ 551.8$ million or $12.2 \%$ to $€ 1,392.8$ million as of 30 September 2024 (31 December 2023: $€ 1,241.0$ million). This reflects the acquisition and first-time consolidation of Netstal Maschinen AG (Netstal), Switzerland, as of 28 March 2024. Intangible assets increased significantly as a result, rising from $€ 460.7$ million at the end of 2023 to $€ 367.6$ million. The Netstal acquisition also added to property, plant and equipment and right ofuse assets, which amounted to $€ 803.1$ million at the end of the third quarter (31 December 2023: $€ 762.6$ million).

Krones' current assets decreased between January and September 2024. They stood at $€ 3,052.8$ million at the end of the reporting period, which is 3.1\% or $€ 96.9$ million below the figure as of 31 December 2023. The decrease mainly related to cash and cash equivalents. The positive free cash flow (excluding M\&A activities) meant that, despite the cash outflows for M\&A activities totalling $€ 778.9$ million and the dividend distribution of $€ 69.5$ million, cash and cash equivalents decreased by only $€ 143.3$ million to $€ 305.1$ million in the reporting period (31 December 2023: $€ 448.4$ million). In contrast, inventories increased slightly by $€ 34.3$ million to $€ 675.7$ million (December 31, 2023: $€ 641.4$ million), trade receivables by $€ 28.2$ million to $€ 806.9$ million and contract assets by $€ 14.3$ million to $€ 1,070.6$ million.

Current liabilities decreased in the first three quarters of 2024 by 3.3\% or $€ 76.8$ million to $€ 2,275.2$ million. The main contributing factor here was a $€ 118.8$ million reduction in contract liabilities to $€ 922.2$ million (31 December 2023: $€ 1,041.0$ million). This reflects the order intake, and hence advance payments from customers returning to normal levels, together with the increased production output. At $€ 697.0$ million, trade payables were $3.6 \%$ down in the report-

ing period (31 December 2023: €723.2 million). In contrast, other liabilities and accruals increased, rising by $€ 37.9$ million to $€ 388.9$ million (31 December 2023: $€ 351.0$ million). As of the end of September 2024, the company had short-term bank debt totalling $€ 1.6$ million (31 December 2023: $€ 1.2$ million).

Non-current liabilities rose only slightly to $€ 419.9$ million as of 30 September 2024 (31 December 2023: €410.2 million). The largest item, provisions for pensions, was near-constant at $€ 177.0$ million (31 December 2023: €178.4 million). Other financial liabilities and lease liabilities went down by $€ 18.6$ million to €110.9 million. Conversely, deferred tax liabilities increased by $€ 77.6$ million to €31.1 million. The Company had $€ 1.6$ million in non-current bank debt as of 30 September 2024 (31 December 2023: €2.5 million).

There were no material exchange rate or divestment effects in the reporting period on any assets side or equity and liabilities side items of the statement of financial position. The acquisition of Netstal Maschinen AG mainly affected non-current assets and cash and cash equivalents.

Equity ratio at 30 Sep (\%)

The solid $€ 302.9$ million net cash and very solid 40.5\% equity ratio give Krones a high degree of stability in the challenging economic and political environment.

ROCE and equity ratio increase significantly

Due to the positive consolidated net income for the first nine months, equity increased by $7.0 \%$ relative to the 2023 reporting date to $€ 1,834.8$ million (31 December 2023: $€ 1,714.9$ million). The equity ratio improved as a result to $40.5 \%$ as of 30 September 2024 (31 December 2023: 38.3\%). With net cash (cash and cash equivalents less bank debt) of $€ 301.9$ million at the end of the reporting period, Krones continues to have a very stable and solid financial and capital structure. In addition, the group had approximately $€ 850$ million in unused lines of credit as of 30 September 2024.

Krones improved return on capital employed (ROCE) - the ratio of ENIT to average net capital employed over the last four quarters - to $18.3 \%$ in the reporting period, mainly as a result of the significantly higher ENIT (previous year: 17.0\%).

ROCE from 1 Jan to 30 Sep ( $\%$ )

Report from the segments

Filling and Packaging Technology

Segment revenue

Core segment revenue increased by 13.8\% in the first three quarters of 2024.

Following a good first half year, business in Filling and Packaging Technology continued to develop very positively in the third quarter of 2024. Revenue was up 18.2\% year on year, to $€ 1,127.6$ million. In addition to organic growth, the significant revenue increase was partly due to the acquisition of Netstal Maschinen AG, which Krones has consolidated in the core segment since 28 March 2024.

Revenue in the first nine months of 2024 increased by 13.8\% year on year, from $€ 2,880.8$ million to $€ 3,277.2$ million. In the new machinery business - which grew particularly strongly, partly due to the Netstal acquisition - the better availability of electronic components compared to the previous year had a positive impact on output. After the strong first three quarters, the segment should comfortably achieve the growth forecast of 9\% to 13\% for the full year 2024. The core segment accounted for $84.5 \%$ of consolidated revenue in the first nine months of 2024 (previous year: 82.7\%).

Segment revenue ( $€$ million) from 1 Jan to 30 Sep

The core segment generated an ERTDA margin of 10.4\% in the first three quarters of 2024 (previous year: 10.3\%) and is thus within the guidance range of 10.3\% to 10.8\% for the full year 2024.

Segment ERTDA ( $€$ million) and ERTDA margin (\%) from 1 Jan to 30 Sep

Process Technology

Segment revenue

Revenue in Process Technology was 11.7\% higher in the first three quarters of 2024 than in the same period of the previous year.

At $€ 123.5$ million, revenue in the Process Technology segment remained stable in the third quarter of 2024 compared to the previous year ( $€ 123.7$ million). It should be noted, however, that revenue increased by $33 \%$ in the previous year's period. Generally speaking, revenue fluctuations are not unusual in project-based business.

Process Technology revenue in the first nine months of 2024 grew by $11.7 \%$ year on year, from $€ 338.4$ million to $€ 378.1$ million. The individual machines and components business developed particularly well. For the full year 2024, Krones continues to forecast revenue growth of $15 \%$ to $20 \%$.

The acquisition of Ampco Pumps in the USA, which Krones has consolidated since I June 2023, contributed to the segment's growth in the first three quarters of 2024. Process Technology's share of consolidated revenue increased slightly in the first nine months from $9.7 \%$ in the previous year to $9.8 \%$.

Segment revenue ( $€$ million) from 1 Jan to 30 Sep

Segment earnings

Krones has implemented strategic measures securing lasting improvements in efficiency in the Process Technology segment. The company has also expanded its components business (valves and

With an ERTDA margin of 9.6\% (previous year: 7.0\%), the segment's profitability improved significantly in the first nine months of 2024.
pumps). These factors and the acquisition of Ampco Pumps had a positive impact on profitability in the first three quarters of 2024. From January to September 2024, earnings before interest, taxes, depreciation and amortisation (ERTDA) went up by 53.6\% year on year, from $€ 23.7$ million to $€ 36.4$ million. The ERTDA margin consequently rose from 7.0\% to 9.6\%. Even without the effects of the Ampco Pumps acquisition, the ERTDA margin in the first three quarters was within the guidance range of $8 \%$ to $9 \%$ for the full year 2024.

In the third quarter, despite the stable revenue, ERTDA rose from $€ 8.8$ million in the previous year to $€ 10.7$ million. The ERTDA margin went up significantly from 7.1\% to $8.7 \%$. This mainly reflects the favourable product mix.

Segment ERTDA ( $€$ million) und ERTDA margin (\%) from 1 Jan to 30 Sep

Segment revenue

The market environment for As in the first half of the year, market conditions conthe intrologistics segment is the third quarter of 2024. Revenue in the Intralogistics segment fell from $€ R 7.4$ million in the previous year to $€ R 7.6$ million between July and September. Revenue fell in the first nine months of 2024 by $17.6 \%$ year on year, from $€ 266.4$ million to $€ 219.5$ million. The Intralogistics segment's share of consolidated revenue in the first three quarters was $5.7 \%$ (previous year: $7.6 \%$ ).

Order intake developed very well in the first nine months of 2024. Due to the relatively long project durations, however, this will only be reflected in revenue after a time lag. It is therefore very ambitious for Intralogistics to reach the lower end of the $5 \%$ to $10 \%$ target range for growth in the full year 2024.

Segment revenue ( $K$ million) from 1 Jan to 30 Sep

Segment earnings

Thanks to the Intralogistics segment's high degree of flexibility, earnings remained relatively stable in the first nine months of 2024 despite the lower revenue. The focus on projects with good margins also contributed here. Earnings before interest, taxes, depreciation and amortisation (ENITDA) from January to September fell from $€ 13.3$ million in the previous year to $€ 12.4$ million. As a result, the enitDA margin increased to $5.6 \%$ (previous year: $5.0 \%$ ). In the third quarter of 2024 , with a significant fall in revenue, the segment generated ENITDA of $€ 5.0$ million (previous year: $€ 3.9$ million). The ENITDA margin therefore improved from $4.5 \%$ to $7.4 \%$.

In the fourth quarter, profitability should be roughly on a par with the third quarter. For the full year 2024, $K$ times is sticking to its ambitious target of achieving an ENITDA margin in Intralogistics of $6 \%$ to $7 \%$.

Segment ENITDA ( $K$ million) and ENITDA margin (\%) from 1 Jan to 30 Sep

Krones workforce exceeds the 20,000 mark

Krones increased the number of employees between January and September 2024, above all internationally. This reflects the dynamic development of our international markets and the acquisition of Netstal Maschinen AG in Switzerland.

Krones' workforce increased by 1,767 employees year on year to 20,025 employees as of 30 September 2024. Compared to 31 December 2023, the number of employees worldwide increased by 1,512 or 8.2\%. Besides the acquisition of Netstal Maschinen AG, Switzerland, the growth in the workforce is mainly due to the ongoing positive development on international markets. The number of employees outside Germany thus increased significantly in the first nine months of 2024, rising by 1,047 to 8,906 (31 December 2023: 7,859). 524 international employees were added as a result of the Netstal Maschinen AG acquisition. The number of people employed in Germany increased by 465 to 11,119 (31 December 2023: 10,654).

To ensure a sufficient pool of qualified employees for the long term, we continue to invest heavily in training and employee development. As of 30 September 2024, Krones AG had 499 young people in training (previous year. 433). Compared to the 2023 year-end, the number of apprentices worldwide increased by 68 .

Report on expected developments

Krones confirms full-year group financial targets for 2024

After the successful first three quarters, Krones is fully on track to achieve its targets for the 2024 financial year. Revenue and earnings increased as expected compared to the same period of the previous year. Due to the high order intake, the order backing rose further from January to September 2024. This ensures production capacity utilisation through to the end of 2025 .

At the same time, various uncertainties mean that the business environment remains challenging for Krones. These include geopolitical risks in Europe, the Middle East and other parts of the world. Material shortages and the global supply chain problems that could result from military action along important trade routes remain a source of uncertainty.

After the good first three quarters, we confirm our group financial targets overall for 2024. This is based on the current expected development of the markets relevant to Krones.

At group level, we forecast revenue growth of 9% to 15%. On the basis of increa-

The forecast for Krones' individual segments also remains unchanged relative to the information provided in the Annual Report 2023 and is as follows:

Krones segments

Segment Filling and Packaging Technology
Revenue growth	Guidance for 2024	Actual \$M 2024
ERITDA margin	$9-13 \%$	13.8\%
	$10.3 \%-10.8 \%$	10.4\%
Segment Process Technology
	Guidance for 2024	Actual \$M 2024
Revenue growth	$15-20 \%$	11.7\%
ERITDA margin	$8-9 \%$	9.6\%
Segment Intu	Guidance for 2024	Actual \$M 2024
Revenue growth	$5-10 \%$	$-17.6 \%$
ERITDA margin	$6-7 \%$	5.6\%

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2024

Consolidated statement of profit or loss ................................ 27
Consolidated statement of financial position......................... 29
Consolidated statement of cash flows................................ 31
Consolidated segment reporting......................................... 32

OTHER INFORMATION

Members of the Supervisory Board and the Executive Board ..... 34
Publication information ..... 35
Financial calender ..... 35
Contact. ..... 35

Pursuant to Section 8 (1) of the articles of association, eight members of the Supervisory Board are elected by the shareholders inaccordance with the German Stock Corporation Act (Sections 96 (1) and 101). Eight members are elected by the employees pursuant to Section 1 (1) and Section 7 (1) Sentence 1 Number 1 of the Codetermination Act.

Supervisory Board				Executive Board
Volker Kronseder	Robert Friedmann	Professor Dr. jur. Susanne Nonnast	Petra Schadeberg-Hermann	Christoph Klenk
Chairman of the Supervisory Board	Spokesman for the central	Professor at Ostbayerische	Managing partner	Chief Executive Of
* Universitätsklinikum	managing board of the	Technische Hochschule (otrv)	Krombacher Brauerei
Regensburg	Würth Couup	Regensburg	Bernhard Schadeberg GmbH \& Co. KG,	Uta Anders
* Wirtschaftsberat	* 27 Friedrichshafen AG	Dr. Verena Di Pasquale**	Krombacher Finance GmbH,	Chief Financial Officer
Bayerische Landesbank		Deputy Chairperson of 0028 Bayern	Schawel GmbH,
Josef Weitzer**		Dbe German Trade Union	Diversum Holding GmbH \& Co.	Thomas Ricker
Deputy Chairman of the	Deputy Chairman of the Employees'	Confederation in Bavaria)	Stephan Seifert	Chief Sales Officer
Supervisory Board, Chairman of	Council, Rosenheim		Chairman of the Executive Board
Group Central Works Council		Beate Eva Maria Pöppel**	of Köhler AG, Hamburg	Markus Tischer
Chairman of the Works Council	Thomas Hilt**	Independent Member of the	"Board of trustees of the Körber	International Operations
Neutraubling	Chairman of the Employees'	Employees' Council	Foundation	and Services
* Bay Betriebskrankenkassen	Council, Nöttenau
Norbert Broger	Markus Hüttner**	Stefan Raith***	Matthias Winkler	Ralf Goldbrunner
Diplom-Kaufmann	Deputy Group Employees'	Head of Business Line, Line Solutions	Partner at Baker Tilly Germany	Operations
Nora Diepold	Council Chairman	*re-suit AG
Chief Executive Officer	Deputy Employees' Council	Olga Redda**
we Immobilienverwaltung GmbH,	Chairman, Neutraubling	Second authorised representative
Regensburg		and managing director,
		u. Metall Regensburg
		*osease Licht AG
		*osease GmbH
		*ams oaseae International GmbH
		*Maschinenfabrik Reinhausen GmbH

• Other Supervisory Board seats held, pursuant to Section 125 (1) Sentence 5 of the German Stock Corporation Act In addition, each of the group companies is the responsibility of two members of the Executive Board.

$\equiv$

YKRONES