KRONES AG — Call Transcript 2026

Hello, and good afternoon. We now come to the last presentation of a long presentation day, and I do appreciate you all sticking with us. We have, last but not least, Krones AG with us, which will be presented by Head of Group Treasury and Group IR, Mr. Olaf Scholz. Maybe interesting to know for all of you who are, just like me, longing for a cold beer after a hot, long day like today, Krones is just in the right business for you, and I'm sure that we will gain some insight on that aspect of Krones' business as well. Olaf, it's all yours. Fill us up, please. Thanks, Holger. Thanks a lot for the possibility here to present Krones. Also thanks to your team and to mwb for the organization of the whole day. I'm the last one today. It's a hot day. It's not only beer where we are very strong and familiar, but I think this is also a topic of the presentation. What we will see today, perhaps some few words about Krones in general. We have a look after the overview about the markets, the strategy. We have a deeper look also a little into segments. At the end, outlook. I think that's enough for 20 minutes, and then I hope you have some questions, or we will find some topics to discuss. At first, we are the global leader in the filling, packaging of beverages for PET plastic, for cans, and for glass. Not only beer. We are stronger in water than in beer. Definitely 40% of our sales is water driven, but also CSD, carbonated soft drink, is definitely also one of our focus. We are also here worldwide. In all over the world, you will see a Krones machine, a Krones filling and package line. Some few countries where we are not, which are too small for a line, but at the end, all over the world. We are mainly in beverages, but also a little in chemical, in pharmaceutical, and in cosmetics segments we will see later. Few words about 2025. With our more than 20,000 employees worldwide, we realized around about EUR 5.6 billion as in sales to 2025, and with a margin of 10.6% EBITDA margin. The result was a little above EUR 600 million EBITDA. If you see book-to-bill, the receivables versus the sales was slightly below one, but no problem at all. The backlog is more than EUR 4 billion high. As mentioned, as world market leader, every fourth bottle is filled by a Krones line worldwide. Strategy and markets. For you, I think to give you a few where we are, on the left side, you see a picture, that's our core business, filling and packaging. 80% of our sales is in the core business. We are in the process technology, product treatment, everything a customer would need to produce his drinks, to mix it, heat it, perhaps, also separators. I know there was another company before our meeting. This company is definitely one of the leading position in the world. We are definitely smaller with our just 10% of our sales in the process technology. Beer, yes and no. I will talk later a bit about beer. Intralogistics also here, definitely big players on the market. We are very small. We are focused on automatic picking systems and so on. I think more important here is what are the drivers in the market? What are our drivers? Why we say Krones is in a non-cycle business? Here you see our main growth drivers. Growing in population in the world, more than 80 million people every year need something to drink. Rising middle class. Also, in many countries, people can drink their first or buy their first Coke, their second beer for the night, and so on. Urbanization. In countries like in China, when many people live in villages, they brew their own tea. They work in the villages, they need a bottled drink. Very important is sustainability. I will also have some slides later for this topic because it's one of our biggest main drivers. Why is it so that the main drivers? This is a package of figures about the beverage consumption. You see here a steady growth of around 3%. 3% every year is a growing of beverage consumption based on the growth drivers I mentioned. Definitely the biggest one is for water. The 4.8 you see in the middle is water. We are quite strong because you need definitely hygiene bottled water in the future. We talk about regions, not in Germany where you can perhaps drink tap waters. We talk about Africa. We talk about APAC. We talk about South America and so on. Definitely the drivers are hygiene bottled water. You see a sales split of Krones. If you talk about regions going from east to west, China, yes, we have a China business. We are number one also in China for the hygiene bottled high speed lines. High speed is 50,000, 60,000 bottles per hour. Filled PET, or if it's can, it's above 100,000 cans per hour. We have a China business. It's important for us, we are not Chinese focused. Our sales part, for example, in APAC, Asia Pacific, is bigger definitely than in China. Keep in mind here also countries like Indonesia, where we have 280 million inhabitants. India is included here. If we go a little bit to the west, Middle East, Africa. It's a big share, 12%, 13% in Middle East, Africa. It's not only Middle East, it's also Sub-Sahara in countries like Nigeria, Uganda, and so on, where we have definitely a lot of customers, not only the key accounts in the world, but also strong local customers. Here, for example, we'll see it later also, how many people are there. Krones employees, more than 800 Krones employees, mainly in the sales, mainly in the service, are working for Krones in Middle East, Africa. APAC, 1,300. If we go a little bit to south, it's South America, mainly driven definitely by Brazil and Mexico. Mexico is a very important country region for us. With a lot of local ones producing, filling in Mexico and still deliver to the U.S. U.S. by itself, yes, you see here a decrease in the percentage, but if you compare it with this growth we have seen on the top line for the group, you see a more stable situation. Also in times when the tariffs are, and also our customers have to pay the tariffs. Important they have to pay the tariffs. It's not Krones, and we do not have any direct competitor. I think perhaps there are some questions about this topic for you. You see, it's very important for us that we are in every region, that we are quite strong. I would say, yes, every region has some situations, problems, difficulties, challenges, but there's always, we say, one region where the sun is shining. This can compensate at the moment, U.S. compensate a little Middle East, Africa. I mentioned before sustainability, and I know there is a lot of discussion about sustainability in, let me say, the last 12 months. That a lot of industry say sustainability has not the same level as perhaps two years ago. We have two topics here. Number 1, this is what you see in front of you with our acquisition we have done with Netstal, a Swiss company we bought March 24. We closed the loop, the PET loop, because we have now machines for our customers, you see it on the left, for producing the molds by an injection molding. We have the blow-molding technology to produce the bottles. Our customers can then direct produce their bottle with their design and so on, optimize also the interface. After the secondary packaging, that's a topping and so on, is it a six-pack and whatever, we are also in the recycling technology. If you like, you can definitely close the loop besides TOMRA, because this collection activities we do not have, but you can then close the loop with the PET and with optimized interfaces between. I think that's more or less important. Also this slide, I think every company has its net zero strategy, also Krones, because our customers have their net zero strategy. Let me say, it's important for them, for Coke, for Pepsi and so on, but it's not only regarding to reach their targets to get the net zero by 2040, by 2030 or 2050. I think more important is if you use the Krones lines, you need less energy, you need less plastic, you need less water consumption, you need less operators. All this helps you to fulfill your target. On the other side, more important, you save costs. Less energy costs, less water, less salaries, and so on. This is definitely, I would say, the two sides of the medal, and both are gold. This is definitely why we name it the fourth mega trend. It's the economic sustainability. In the middle of my presentation, I want to give you a little bit more details about the segment strategy. It's a very complex topic, the Ingeniq. Ingeniq is a new line generation we published last September at the drinktec, the biggest trade fair we have every three, four years in Munich. Before, it was named the line of the future. This line runs since May last year. It's really not only a strategy on the paper, it's really a sold line running with 104,000 bottles per hour in the PET non-sparkling business. It's in U.K., where our customer fill every day more than 100,000 bottles per hour. The idea is behind the Ingeniq, it's a connected link between, on the left side, high-end equipment. All the actual newest innovations we have on the market in order to save costs, running costs, TCO of our customers, connected and secured with digital solutions with our after-sales business. We name it Lifecycle Alliance. It's a Modular Service Agreement with different stages at the end of the day, and at the highest stage, we guarantee an output. We do not make a pay-per-bottle model. We guarantee a customer an output if he do this what we tell him. We decide when the maintenance team is coming, what they put in, and so on. We have a win-win situation because focus is still on the TCO of our customers on one hand. There is a rough calculation. If you see the total TCOs of a filling and packaging line is between EUR 500 million up to EUR 750 million within 10 years. They can save 10% TCOs by this better performance. They have to invest definitely more, have to buy a more expensive engineering line, as well as to make a MSA, Modular Service Agreement with us. Nevertheless, also important to do this is that we have worldwide service people. If you see our people in Krones, the main part is in Germany, definitely. Okay, fair. We have many of our production here. Also, as I mentioned before, a lot of people, more than 800, are in Africa, service people. In China, we have a small production, but also a lot of more than 1,000 of the employees there are in the service too, and so on. Also 1,600 people in the U.S., but I come few seconds also to this situation. Because on the other side, yes, I know we have a lot of people worldwide in the service, but we have a very centralized production. When you see here in the middle, the 25 figures, two-thirds of our production is in Germany. Just one-third is outside of Germany. At the moment, in Hungary, in China, a little in U.S., in Italy definitely because one of our subsidiaries or the logistic mainly is in Italy. Is it a bad situation? I don't think so. We have a concentrate production. We can use scales. We invest at the moment a lot in automation here in Germany to have here definitely advantages. What we see on the other side is that other regions, we have to be stronger, with different strategy behind. One is, for example, the U.S. We decided not to go with a big production to U.S. Why? We see no direct local competition there in the filling or in the line business. Also, our two big competitors, KHS, a German one, and Sidel, also have no big line productions in the U.S. Additionally, it's very expensive to have blue-collared employees there, are very expensive. On the other side, we need parts which must be also sent to U.S. also with tariffs. Where is the big advantage? We invest EUR 50 million in a new logistics center with a small production. We have already, you see it on the right side in Arden, NC, a big production for the Intralogistics part in the U.S. and in the process technology, we are in many states of the U.S. with already a production. Beside that, we have 15%-18% of tariffs which must be paid by our customers. We see at the moment no big advantage. Where we go with the production, what we are doing at the moment, we invest a lot in China and in India. China, we are already, but we increase here our production in order to be stronger at the Chinese market, to be nearer to our competitors. We are the market leader in China. We will be the market leader in China, and we will attack our competitors in China directly with products China for China. We see definitely India, a very good market for us. A lot of people need something to drink. Regulations are now open since two or three years. That it makes sense also to be there. All these investments, but will just be in the P&L, in the sales, may I would say beginning 2027. Because investments must be finalized, and then we need some months in order to bring the production on a level, not before 2027. Quick view on process technology, and Holger mentioned, yes, if you need a cold beer, process technology has in history a big share in breweries that we have sold project tickets of EUR 50 million-EUR 60 million per big brewery, but at the moment, no business here. We see a weaker business in breweries, in beer. Yes, perhaps non-alcoholic beer was or is a driver, but not for a complete brewery. This is the reason why you see a smaller top-line growth here. Sometimes also some quarters where it's decreasing because we are concentrating on the other part of the business, which is on the left side, pumps and valves. High margin, definitely. Small tickets, EUR 1,000, EUR 2,000 per pump or valve. Up then, definitely we call it units. All the homogenizers, heat exchangers, decanters, new in our portfolio, and so on. With this, we make a very good margin, and if you see the history in the figuring of the last five, six years, you see a definitely a good job what we are doing. Next is the Intralogistics. Here, just a focus. We are not interested in high-bay warehousing as a big project. We are more in the automated picking solutions. 60% of the sales in the intralogistic is with the beverage industry. 40% with a lot of other industries, groceries, and so on. We are strong here definitely in the U.S. The market is incredible big worldwide. 60% is of all in the production of not only all our customers worldwide, is not automated. This is a very big market. Once again, we are very small here if you compare with the big players. Yeah. Definitely we make our business. It's a little bit seasonality here. Yeah. It's more at the end of the year where you see more top-line growth and not during the year. Yeah. Coming last but not least, the last two minutes to our outlook. Yeah. I think you know 3%-5% sales growth, I know looks not so big. Yeah. On the other side, we have last year 2025 7%, before 12%, 9%. It is that we are at the moment limited by our production facilities or by performance. We need our new plants definitely, but they are not online. 2026 is a question for 2027. Also here, currency translation effects, first time we do this. Why? Because if you see Q1 last year 2025, average in US dollar was EUR 1.05. And now this year, EUR 1.17. You see a big difference and that's the reason to make it comparable. It's without currency translation. Margin growth. Yes, 10.7%-11.1%. And the ROCE to 19%-20%. All below is with a disclaimer that we don't see any big problems in the supply chain, for example. These are the midterm targets around EUR 7 billion in 2028. A margin target of, no, it's a wide range, 11%-13%. We want to grow on one hand and stay in this margin target. That's more important, a profitable growth. That's the key behind. Last but not least, very short, some share informations. Perhaps you know we are owned mainly by Kronseder Family with around 25%. Schadeberg Family also a family, has around about 6%. Free float of 24%. Our dividend policy is 25%-30% of the after-tax is for dividends. We increased this two weeks ago in our AGM. Last but not least, why is it an attractive investment? We are leading in a stable growing market, food and mainly beverages. Our midterm targets are quite clear and named by profitable growth. We do not talk about the cash topic, but at the end it's a big growth, or let me say a stable situation also in the cash. We have around about EUR 400 million-EUR 500 million net cash. Or let me say, no bank loans. This is very important. A very strong equity also with 42%-43%. Resilient business model, I think, I hope you understand what I mean when I say it's a non-cycle business. We use digitalization. We have more than 600 people. 600 working just for digitalization to implement it in our existing solution, and economic sustainability is definitely the focus with the TCOs. I think, Holger, that's my presentation. Sorry, I need one minute more than planned, but it's up to you if there are questions. Thanks so much. You could feel the enthusiasm through the microphone, so I very much appreciate the dynamic. It's perfect for the last slot of the day, and I think everybody woke up again and paid attention. We do have a few questions, and I would like to reflect on them, beginning with the first one, talking about automation efforts in the production facility. What do you think is the effect on full-time employees and the P&L coming from that initiative? Well, number one is we invest at the moment, which means, on the P&L at the moment, not so much. It's CapEx. It's half of the 4% of the sales we invest is here in Germany. Yeah. Is in a new logistic center here in order to automate also our production logistic. Yeah. It's not that we want to reduce our employee amount, if this is the question. It's more growing without growing. Yeah. If you see that we have in the next year's growth rates, yeah, we have contracts, we have a good market on one hand, we need definitely be faster in the project solution and also deliver faster our after-sales. I hope this answers the question. Yep, it did. I just had to activate my microphone again. Okay. You are rolling out capacity in the second half simultaneously in the U.S., China, India. The question is, how do you manage the execution risks that come with it, and will this local sourcing effectively shield margins from trade tariffs or more effectively shield margins from trade tariffs? If we go at first to China, we are already in China with the production. I don't see any execution risks because we put more. For example, we produce more different machines in China in 2027. It's not second half of 2026. It's the 2027, yeah, where we produce definitely more. I see here lower risk, it's definitely a Chinese product for China, yeah, developed also by our Chinese colleagues. In the U.S., yes, I know that is a kind of risk, keep in mind, we have no competitors there. Yeah. We see we calculated several times last year if we should go to U.S. as a production end, if you see that the salaries are 15%-18% higher than in low-cost country, Germany. Sorry to say this. Yeah. This is the reality. Yeah. What happens in two years? Growing investment needs minimum two years that you produce a first machine. What is the strategy of the U.S. government in two years? How secured are your investments? Combined that the customers have to pay. I know, but they have no chance. We have seen some month after April last year, Rose Garden presentation some months. The orders were decreasing, but they are coming now back. We see now more growth in the U.S. than in other regions because our customers realized there will be no time without any tariffs. That is the situation. Thank you. There was one question regarding currency headwinds into Q2, but you have already answered that during your presentation, so I would like to skip it and come to the next questions. There are quite a few questions surrounding growth acceleration to match your guidance for the full year. Let me start out with the first one. Reading that growth, sales growth, I am talking about in Q1, has been at 1.4% versus the full year guidance that is 3%-5%, basically implying that we will see solid acceleration in the remaining quarters and probably in the second half. Is that what investors could expect, should expect. Is that realistic? Thanks, Holger. At first, 100% right. We have 1.4 growth if we put the FX translation out. If you see it on the segments, you see that we are in the core business in our range, 2%-4% growth. Situation is Intralogistics, where was a negative growth. Where we see a 10%-15% growth for the full year. As I mentioned before, Intralogistics is a business where you make more growth at the year-end. I do not know the details why, but it is in the market a stronger Q4. This is what you see the last five to six years. The strongest growth is definitely in Q4. Number two is also in the process technology we have in our base still in the comparably, still a brewery. We are making now a plant for ice cream. Interesting. New business for us, definitely more sales here. You see in the core, it's okay. It's more a question of the two other smaller segments. I don't think that we see a big growth in the second quarter. Why? Because it's definitely regarding that we are mainly located in Germany and also in Bavaria. We have a lot of bank holidays. We have Pfingsten, we have Easter in the second quarter. If we have two days more holidays per month, this is the reduction of 10% in performance. This is also what you see that you have more or less in the production a weaker second quarter. I see definitely a stronger second half year and also in the other segment, as mentioned, in order to reach our 3%-5% sales target. Great. Thank you. I think hand in hand with the acceleration that we will see on the revenue side, the question regarding the EBITDA margin, which was that the question reads 10.8% in the first quarter. Your guidance is for 10.7%-11.1%, that margin expansion that we will see in the remaining year to maybe reach the upper end of the guidance could come from additional sales growth. Number one, we have the 10.7%-11.1%. Let me this first. Some investors ask me, "What must happen if we have to get 11 this year, 2026?" We need a world without any problems, without negative situations. We are not directly affected in our business, nevertheless our customers are. It's definitely if they have more cost pressures, definitely they can less invest, which means not a direct top line growth, but it then we coming to the mix situation. This is what we always discuss every quarter. How is the mix between machine business and after sales business? We do not publish the after sales figures. It's no secret margin is higher. If you have definitely a mix that with a higher after sales than a machine growth in one quarter, you have a better margin. This is what you always see in the fourth quarter. Why? Because a lot of our customers make after sales business in the first quarter. Over summertime, when it's hot outside, they produce, they have no time that our colleagues maintain the lines. After summer, September, October, the machines are running 24/7. They need after sales, then the fourth quarter is coming. I don't think that we are at the end of the margin. It's possible, it's everything, to be realistic, a lot of analysts have it more in the mid-size. Then we have still a growth of 30 basis points in the margin. After years with 50 basis points, I think it's a good way in order to reach our margin targets midterm, which is 11%-13% in 2028. Good. Looking at the time, we're already two minutes over. I do only have two questions left. I would say for those of you who are interested, stay with us. We're going to be done in a very few moments. Just to maybe answer those two remaining questions. One of them also concerning exactly the 2028 guidance that you just referred to or the growth potentials. In 2028, you're targeting revenues of around EUR 7 billion, which is quite a bit versus 2025 and forecast at 2026 growth. If you look at the potential underlying growth rate that you need to accomplish in order to get to EUR 7 billion, what is driving that acceleration and growth in 2027, 2028? You've alluded to that in your presentation, but maybe just as a quick wrap-up. Yeah. Okay, no problem at all. Well, yes, it is ambitious target, no doubt. Yeah. We have seen very good years now, as mentioned before, why we have a smaller growth in 2026. Nevertheless, the base is the market. What I mentioned about the consumption of beverages in water, for example, the average is 4%. This is how the market grows. We are a market leader, we grow more than the market with our very good solutions in order focused on the cost of our customers. That's the reason why we see that we can grow faster than the market. If you see it combined with water, it's around about 4%, 4.5%. That's market growth. We should go above. To get this around EUR 7 billion, I think it's not easy, definitely. We have to look what happens in the world tomorrow. What happens today in Switzerland or in the night, what happens tomorrow in other regions, we will see how the Middle East situation can be solved and so on. This is definitely also where we have to look, also in our market, where on the other side, the consumption of beverages is a non-cycle business. This is the way with the new production facilities, we can manage. Thank you. That brings me to the last question, and this is one that we can talk about for a long time or a short time, and I'll prefer the latter. It basically says that you are trading at a multiple that even historically speaking, is not high. It's less than 7x EBIT, the lowest since 2009. Could you give us two or three investor concerns that you hear why people are shying away from Krones? Once again, I know there is a potential long answer in the making, but if we could just keep it short, that would be much appreciated. Sure. I think it's not easy at the end of the day, and I'm not sure if I have the only one right answer to it. On one hand, what I present to you is our very resilient business model on this very growing good market. On the other side, yes, Holger, one of your last questions, it's a very ambitious target we see in 2028, no doubt. If I see what mwb, Thomas Wissler, the analyst, have written, what he has calculated, the EUR 150 target price, also my other 12, 13 analysts are more or less similar. Why we have a calculation of EUR 150, whereas on the other side, we see EUR 115 at the moment. I think on one hand, it's definitely a situation that a lot of investors looking to other companies, to other industries, semiconductors, everybody's investing. I don't know who is investing, everybody in the big U.S. IPO last week, and also in semiconductor companies and so on. Perhaps it's not so easy. On the other side, yes, we are in a lot of investors meetings, more or less, the questions are similar, but I think to have here right answer is very complex. I think there is a possibility also in the share price, but for me, most important that I bring you the story to Krones, and you have to decide yes or no in order to participate on our success growth full story. Great. Thank you so much. I guess that's a good summary and, well, final words, it doesn't sound too well, final words to end this presentation. I thank everybody for participating through the day and of course, also in the presentation of Olaf Scholz featuring Krones. Thanks for the questions, all of you. Have a nice afternoon, maybe a cold beer or also water, which is good for you as well. We'll see you again at one of our next round tables, and until then, all the best. Thanks, Olaf. Thanks everybody. Thanks to everybody. Thanks Holger and your team. Thank you.

Speaker 1: Hello, and good afternoon. We now come to the last presentation of a long presentation day, and I do appreciate you all sticking with us. We have, last but not least, Krones AG with us, which will be presented by Head of Group Treasury and Group IR, Mr. Olaf Scholz. Maybe interesting to know for all of you who are, just like me, longing for a cold beer after a hot, long day like today, Krones is just in the right business for you, and I'm sure that we will gain some insight on that aspect of Krones' business as well. Olaf, it's all yours. Fill us up, please. Hello, and good afternoon. hello and good afternoon We now come to the last presentation of a long presentation day, and I do appreciate you all sticking with us. we now come to the last presentation of a long presentation day and i do appreciate you all sticking with us We have, last but not least, Krones AG with us, which will be presented by Head of Group Treasury and Group IR, Mr. Olaf Scholz. we have last but not least krones ag with us which will be presented by head of group treasury and group ir mr olaf scholz Maybe interesting to know for all of you who are, just like me, longing for a cold beer after a hot, long day like today, Krones is just in the right business for you, and I'm sure that we will gain some insight on that aspect of Krones' business as well. maybe interesting to know for all of you who are just like me longing for a cold beer after a hot long day like today krones is just in the right business for you and i'm sure that we will gain some insight on that aspect of krones' business as well Olaf, it's all yours. olaf it's all yours Fill us up, please. fill us up please

Speaker 2: Thanks, Holger. Thanks a lot for the possibility here to present Krones. Also thanks to your team and to mwb for the organization of the whole day. I'm the last one today. It's a hot day. It's not only beer where we are very strong and familiar, but I think this is also a topic of the presentation. What we will see today, perhaps some few words about Krones in general. We have a look after the overview about the markets, the strategy. We have a deeper look also a little into segments. At the end, outlook. I think that's enough for 20 minutes, and then I hope you have some questions, or we will find some topics to discuss. Thanks, Holger. thanks holger Thanks a lot for the possibility here to present Krones. thanks a lot for the possibility here to present krones Also thanks to your team and to mwb for the organization of the whole day. also thanks to your team and to mwb for the organization of the whole day I'm the last one today. i'm the last one today It's a hot day. it's a hot day It's not only beer where we are very strong and familiar, but I think this is also a topic of the presentation. it's not only beer where we are very strong and familiar but i think this is also a topic of the presentation What we will see today, perhaps some few words about Krones in general. what we will see today perhaps some few words about krones in general We have a look after the overview about the markets, the strategy. we have a look after the overview about the markets the strategy We have a deeper look also a little into segments. we have a deeper look also a little into segments At the end, outlook. at the end outlook I think that's enough for 20 minutes, and then I hope you have some questions, or we will find some topi cs to discuss. i think that's enough for 20 minutes and then i hope you have some questions or we will find some topi cs to discuss At first, we are the global leader in the filling, packaging of beverages for PET plastic, for cans, and for glass. Not only beer. We are stronger in water than in beer. Definitely 40% of our sales is water driven, but also CSD, carbonated soft drink, is definitely also one of our focus. We are also here worldwide. In all over the world, you will see a Krones machine, a Krones filling and package line. Some few countries where we are not, which are too small for a line, but at the end, all over the world. We are mainly in beverages, but also a little in chemical, in pharmaceutical, and in cosmetics segments we will see later. Few words about 2025. At first, we are the global leader in the filling, packaging of beverages for PET plastic, for cans, and for glass. at first we are the global leader in the filling packaging of beverages for pet plastic for cans and for glass Not only beer. not only beer We are stronger in water than in beer. we are stronger in water than in beer Definitely 40% of our sales is w ater driven, but also CSD, carbonated soft drink, is definitely also one of our focus. definitely 40% of our sales is w ater driven but also csd carbonated soft drink is definitely also one of our focus We are also here worldwide. we are also here worldwide In all over the world, you will see a Krones machine, a Krones filling and package line. in all over the world you will see a krones machine a krones filling and package line Some few countries where we are not, which are too small for a line, but at the end, all over the world. some few countries where we are not which are too small for a line but at the end all over the world We are mainly in beverages, but also a little in chemical, in pharmaceutical, and in cosmetics segments we will see later. we are mainly in beverages but also a little in chemical in pharmaceutical and in cosmetics segments we will see later Few words about 2025. few words about 2025 With our more than 20,000 employees worldwide, we realized around about EUR 5.6 billion as in sales to 2025, and with a margin of 10.6% EBITDA margin. The result was a little above EUR 600 million EBITDA. If you see book-to-bill, the receivables versus the sales was slightly below one, but no problem at all. The backlog is more than EUR 4 billion high. As mentioned, as world market leader, every fourth bottle is filled by a Krones line worldwide. Strategy and markets. For you, I think to give you a few where we are, on the left side, you see a picture, that's our core business, filling and packaging. 80% of our sales is in the core business. With our more than 20,000 employees worldwide, we realized around about EUR 5.6 billion as in sales to 2025, and with a margin of 10.6% EBITDA margin. with our more than 20,000 employees worldwide we realized around about eur 5.6 billion as in sales to 2025 and with a margin of 10.6% ebitda margin The result was a little above EUR 600 million EBITDA. the result was a little above eur 600 million ebitda If you see book-to-bill, the receivables versus the sales was slightly below one, but no problem at all. if you see book-to-bill the receivables versus the sales was slightly below one but no problem at all The backlog is more than EUR 4 billion high. the backlog is more than eur 4 billion high As mentioned, as world market leader, every fourth bottle is filled by a Krones line worldwide. as mentioned as world market leader every fourth bottle is filled by a krones line worldwide Strategy and markets. strategy and markets For you, I think to give you a few where we are, on the left side, you see a picture, that's our core business, filling and packaging. 80% of our sales is in the core business. for you i think to give you a few where we are on the left side you see a picture that's our core business filling and packaging 80% of our sales is in the core business We are in the process technology, product treatment, everything a customer would need to produce his drinks, to mix it, heat it, perhaps, also separators. I know there was another company before our meeting. This company is definitely one of the leading position in the world. We are definitely smaller with our just 10% of our sales in the process technology. Beer, yes and no. I will talk later a bit about beer. Intralogistics also here, definitely big players on the market. We are very small. We are focused on automatic picking systems and so on. I think more important here is what are the drivers in the market? What are our drivers? Why we say Krones is in a non-cycle business? Here you see our main growth drivers. We are in the process technology, product treatment, everything a customer would need to produce his drinks, to mix it, heat it, perhaps, also separators . we are in the process technology product treatment everything a customer would need to produce his drinks to mix it heat it perhaps also separators I know there was another company before our meeting. i know there was another company before our meeting This company is definitely one of the leading position in the world. this company is definitely one of the leading position in the world We are definitely smaller with our just 10% of our sales in the process technology. we are definitely smaller with our just 10% of our sales in the process technology Beer, yes and no. beer yes and no I will talk later a bit about beer. i will talk later a bit about beer Intralogistics also here, definitely big players on the market. intralogistics also here definitely big players on the market We are very small. we are very small We are focused on automatic picking systems and so on. we are focused on automatic picking systems and so on I think more important here is what are the drivers in the market? i think more important here is what are the drivers in the market What are our drivers? what are our drivers Why we say Krones is in a non-cycle business? why we say krones is in a non-cycle business Here you see our main growth drivers. here you see our main growth drivers Growing in population in the world, more than 80 million people every year need something to drink. Rising middle class. Also, in many countries, people can drink their first or buy their first Coke, their second beer for the night, and so on. Urbanization. In countries like in China, when many people live in villages, they brew their own tea. They work in the villages, they need a bottled drink. Very important is sustainability. I will also have some slides later for this topic because it's one of our biggest main drivers. Why is it so that the main drivers? This is a package of figures about the beverage consumption. You see here a steady growth of around 3%. 3% every year is a growing of beverage consumption based on the growth drivers I mentioned. Growing in population in the world, more than 80 million people every year need something to drink. growing in population in the world more than 80 million people every year need something to drink Rising middle class. rising middle class Also, in many countries, people can drink their first or buy their first Coke, their second beer for the night, and so on. also in many countries people can drink their first or buy their first coke their second beer for the night and so on Urbanization. urbanization In countries like in China, when many people live in villages, they brew their own tea. in countries like in china when many people live in villages they brew their own tea They work in the villages, they need a bottled drink. they work in the villages they need a bottled drink Very important is sustainability. very important is sustainability I will also have some slides later for this topic because it's one of our biggest main drivers. i will also have some slides later for this topic because it's one of our biggest main drivers Why is it so that the main drivers? why is it so that the main drivers This is a package of figures about the beverage consumption. this is a package of figures about the beverage consumption You see here a steady growth of around 3%. 3% every year is a growing of beverage consumption based on the growth drivers I mentioned. you see here a steady growth of around 3% 3% every year is a growing of beverage consumption based on the growth drivers i mentioned Definitely the biggest one is for water. The 4.8 you see in the middle is water. We are quite strong because you need definitely hygiene bottled water in the future. We talk about regions, not in Germany where you can perhaps drink tap waters. We talk about Africa. We talk about APAC. We talk about South America and so on. Definitely the drivers are hygiene bottled water. You see a sales split of Krones. If you talk about regions going from east to west, China, yes, we have a China business. We are number one also in China for the hygiene bottled high speed lines. High speed is 50,000, 60,000 bottles per hour. Filled PET, or if it's can, it's above 100,000 cans per hour. We have a China business. It's important for us, we are not Chinese focused. Definitely the biggest one is for water. definitely the biggest one is for water The 4.8 you see in the middle is water. the 4.8 you see in the middle is water We are quite strong because you need definitely hygiene bottled water in the future. we are quite strong because you need definitely hygiene bottled water in the future We talk about regions, not in Germany where you can perhaps drink tap waters. we talk about regions not in germany where you can perhaps drink tap waters We talk about Africa. we talk about africa We talk about APAC. we talk about apac We talk about South America and so on. we talk about south america and so on Definitely the drivers are hygiene bottled water. definitely the drivers are hygiene bottled water You see a sales split of Krones. you see a sales split of krones If you talk about regions going from east to west, China, yes, we have a China business. if you talk about regions going from east to west china yes we have a china business We are number one also in China for the hygiene bottled high speed lines. we are number one also in china for the hygiene bottled high speed lines High speed is 50,000, 60,000 bottles per hour. high speed is 50,000 60,000 bottles per hour Filled PET, or if it's can, it's above 100,000 cans per hour. filled pet or if it's can it's above 100,000 cans per hour We have a China business. we have a china business It's important for us, we are not Chinese focused. it's important for us we are not chinese focused Our sales part, for example, in APAC, Asia Pacific, is bigger definitely than in China. Keep in mind here also countries like Indonesia, where we have 280 million inhabitants. India is included here. If we go a little bit to the west, Middle East, Africa. It's a big share, 12%, 13% in Middle East, Africa. It's not only Middle East, it's also Sub-Sahara in countries like Nigeria, Uganda, and so on, where we have definitely a lot of customers, not only the key accounts in the world, but also strong local customers. Here, for example, we'll see it later also, how many people are there. Krones employees, more than 800 Krones employees, mainly in the sales, mainly in the service, are working for Krones in Middle East, Africa. APAC, 1,300. Our sales part, for example, in APAC, Asia Pacific, is bigger definitely than in China. our sales part for example in apac asia pacific is bigger definitely than in china Keep in mind here also countries like Indonesia, where we have 280 million inhabitants. keep in mind here also countries like indonesia where we have 280 million inhabitants India is included here. india is included here If we go a little bit to the west, Middle East, Africa. if we go a little bit to the west middle east africa It's a big share, 12%, 13% in Middle East, Africa. it's a big share 12% 13% in middle east africa It's not only Middle East, it's also Sub-Sahara in countries like Nigeria, Uganda, and so on, where we have definitely a lot of customers, not only the key accounts in the world, but also strong local customers. it's not only middle east it's also sub-sahara in countries like nigeria uganda and so on where we have definitely a lot of customers not only the key accounts in the world but also strong local customers Here, for example, we'll see it later also, how many people are there. here for example we'll see it later also how many people are there Krones employees, more than 800 Krones employees, mainly in the sales, mainly in the service, are working for Krones in Middle East, Africa. krones employees more than 800 krones employees mainly in the sales mainly in the service are working for krones in middle east africa APAC, 1,300. apac 1,300 If we go a little bit to south, it's South America, mainly driven definitely by Brazil and Mexico. Mexico is a very important country region for us. With a lot of local ones producing, filling in Mexico and still deliver to the U.S. U.S. by itself, yes, you see here a decrease in the percentage, but if you compare it with this growth we have seen on the top line for the group, you see a more stable situation. Also in times when the tariffs are, and also our customers have to pay the tariffs. Important they have to pay the tariffs. It's not Krones, and we do not have any direct competitor. I think perhaps there are some questions about this topic for you. If we go a little bit to south, it's South America, mainly driven definitely by Brazil and Mexico. if we go a little bit to south it's south america mainly driven definitely by brazil and mexico Mexico is a very important country region for us. mexico is a very important country region for us With a lot of local ones producing, filling in Mexico and still deliver to the U.S. with a lot of local ones producing filling in mexico and still deliver to the u.s U.S. by itself, yes, you see here a decrease in the percentage, but if you compare it with this growth we have seen on the top line for the group, you see a more stable situation. u.s by itself yes you see here a decrease in the percentage but if you compare it with this growth we have seen on the top line for the group you see a more stable situation Also in times when the tariffs are, and also our customers have to pay the tariffs. also in times when the tariffs are and also our customers have to pay the tariffs Important they have to pay the tariffs. important they have to pay the tariffs It's not Krones, and we do not have any direct competitor. it's not krones and we do not have any direct competitor I think perhaps there are some questions about this topic for you. i think perhaps there are some questions about this topic for you You see, it's very important for us that we are in every region, that we are quite strong. I would say, yes, every region has some situations, problems, difficulties, challenges, but there's always, we say, one region where the sun is shining. This can compensate at the moment, U.S. compensate a little Middle East, Africa. I mentioned before sustainability, and I know there is a lot of discussion about sustainability in, let me say, the last 12 months. That a lot of industry say sustainability has not the same level as perhaps two years ago. We have two topics here. Number 1, this is what you see in front of you with our acquisition we have done with Netstal, a Swiss company we bought March 24. You see, it's very important for us that we are in every region, that we are quite strong. you see it's very important for us that we are in every region that we are quite strong I would say, yes, every region has some situations, problems, difficulties, challenges, but there's always, we say, one region where the sun is shining. i would say yes every region has some situations problems difficulties challenges but there's always we say one region where the sun is shining This can compensate at the moment, U.S. compensate a little Middle East, Africa. this can compensate at the moment u.s compensate a little middle east africa I mentioned before sustainability, and I know there is a lot of discussion about sustainability in, let me say, the last 12 months. i mentioned before sustainability and i know there is a lot of discussion about sustainability in let me say the last 12 months That a lot of industry say sustainability has not the same level as perhaps two years ago. that a lot of industry say sustainability has not the same level as perhaps two years ago We have two topics here. we have two topics here Number 1, this is what you see in front of you with our acquisition we have done with Netstal, a Swiss company we bought March 24. number 1 this is what you see in front of you with our acquisition we have done with netstal a swiss company we bought march 24 We closed the loop, the PET loop, because we have now machines for our customers, you see it on the left, for producing the molds by an injection molding. We have the blow-molding technology to produce the bottles. Our customers can then direct produce their bottle with their design and so on, optimize also the interface. After the secondary packaging, that's a topping and so on, is it a six-pack and whatever, we are also in the recycling technology. If you like, you can definitely close the loop besides TOMRA, because this collection activities we do not have, but you can then close the loop with the PET and with optimized interfaces between. I think that's more or less important. We closed the loop, the PET loop, because we have now machines for our customers, you see it on the left, for producing the molds by an injection molding. we closed the loop the pet loop because we have now machines for our customers you see it on the left for producing the molds by an injection molding We have the blow-molding technology to produce the bottles. we have the blow-molding technology to produce the bottles Our customers can then direct produce their bottle with their design and so on, optimize also the interface. our customers can then direct produce their bottle with their design and so on optimize also the interface After the secondary packaging, that's a topping and so on, is it a six-pack and whatever, we are also in the recycling technology. after the secondary packaging that's a topping and so on is it a six-pack and whatever we are also in the recycling technology If you like, you can definitely close the loop besides TOMRA, because this collection activities we do not have, but you can then close the loop with the PET and with optimized interfaces between. if you like you can definitely close the loop besides tomra because this collection activities we do not have but you can then close the loop with the pet and with optimized interfaces between I think that's more or less important. i think that's more or less important Also this slide, I think every company has its net zero strategy, also Krones, because our customers have their net zero strategy. Let me say, it's important for them, for Coke, for Pepsi and so on, but it's not only regarding to reach their targets to get the net zero by 2040, by 2030 or 2050. I think more important is if you use the Krones lines, you need less energy, you need less plastic, you need less water consumption, you need less operators. All this helps you to fulfill your target. On the other side, more important, you save costs. Less energy costs, less water, less salaries, and so on. This is definitely, I would say, the two sides of the medal, and both are gold. Also this slide, I think every company has its net zero strategy, also Krones, because our customers have their net zero strategy. also this slide i think every company has its net zero strategy also krones because our customers have their net zero strategy Let me say, it's important for them, for Coke, for Pepsi and so on, but it's not only regarding to reach their targets to get the net zero by 2040, by 2030 or 2050. let me say it's important for them for coke for pepsi and so on but it's not only regarding to reach their targets to get the net zero by 2040 by 2030 or 2050 I think more important is if you use the Krones lines, you need less energy, you need less plastic, you need less water consumption, you need less operators. i think more important is if you use the krones lines you need less energy you need less plastic you need less water consumption you need less operators All this helps you to fulfill your target. all this helps you to fulfill your target On the other side, more important, you save costs. on the other side more important you save costs Less energy costs, less water, less salaries, and so on. less energy costs less water less salaries and so on This is definitely, I would say, the two sides of the medal, and both are gold. this is definitely i would say the two sides of the medal and both are gold This is definitely why we name it the fourth mega trend. It's the economic sustainability. In the middle of my presentation, I want to give you a little bit more details about the segment strategy. It's a very complex topic, the Ingeniq. Ingeniq is a new line generation we published last September at the drinktec, the biggest trade fair we have every three, four years in Munich. Before, it was named the line of the future. This line runs since May last year. It's really not only a strategy on the paper, it's really a sold line running with 104,000 bottles per hour in the PET non-sparkling business. It's in U.K., where our customer fill every day more than 100,000 bottles per hour. This is definitely why we name it the fourth mega trend. this is definitely why we name it the fourth mega trend It's the economic sustainability. it's the economic sustainability In the middle of my presentation, I want to give you a little bit more details about the segment strategy. in the middle of my presentation i want to give you a little bit more details about the segment strategy It's a very complex topic, the Ingeniq. it's a very complex topic the ingeniq Ingeniq is a new line generation we published last September at the drinktec, the biggest trade fair we have every three, four years in Munich. ingeniq is a new line generation we published last september at the drinktec the biggest trade fair we have every three four years in munich Before, it was named the line of the future. before it was named the line of the future This line runs since May last year. this line runs since may last year It's really not only a strategy on the paper, it's really a sold line running with 104,000 bottles per hour in the PET non-sparkling business. it's really not only a strategy on the paper it's really a sold line running with 104,000 bottles per hour in the pet non-sparkling business It's in U.K., where our customer fill every day more than 100,000 bottles per hour. it's in u.k where our customer fill every day more than 100,000 bottles per hour The idea is behind the Ingeniq, it's a connected link between, on the left side, high-end equipment. All the actual newest innovations we have on the market in order to save costs, running costs, TCO of our customers, connected and secured with digital solutions with our after-sales business. We name it Lifecycle Alliance. It's a Modular Service Agreement with different stages at the end of the day, and at the highest stage, we guarantee an output. We do not make a pay-per-bottle model. We guarantee a customer an output if he do this what we tell him. We decide when the maintenance team is coming, what they put in, and so on. We have a win-win situation because focus is still on the TCO of our customers on one hand. The idea is behind the Ingeniq, it's a connected link between, on the left side, high-end equipment. the idea is behind the ingeniq it's a connected link between on the left side high-end equipment All the actual newest innovations we have on the market in order to save costs, running costs, TCO of our customers, connected and secured with digital solutions with our after-sales business. all the actual newest innovations we have on the market in order to save costs running costs tco of our customers connected and secured with digital solutions with our after-sales business We name it Lifecycle Alliance. we name it lifecycle alliance It's a Modular Service Agreement with different stages at the end of the day, and at the highest stage, we guarantee an output. it's a modular service agreement with different stages at the end of the day and at the highest stage we guarantee an output We do not make a pay-per-bottle model. we do not make a pay-per-bottle model We guarantee a customer an output if he do this what we tell him. we guarantee a customer an output if he do this what we tell him We decide when the maintenance team is coming, what they put in, and so on. we decide when the maintenance team is coming what they put in and so on We have a win-win situation because focus is still on the TCO of our customers on one hand. we have a win-win situation because focus is still on the tco of our customers on one hand There is a rough calculation. If you see the total TCOs of a filling and packaging line is between EUR 500 million up to EUR 750 million within 10 years. They can save 10% TCOs by this better performance. They have to invest definitely more, have to buy a more expensive engineering line, as well as to make a MSA, Modular Service Agreement with us. Nevertheless, also important to do this is that we have worldwide service people. If you see our people in Krones, the main part is in Germany, definitely. Okay, fair. We have many of our production here. Also, as I mentioned before, a lot of people, more than 800, are in Africa, service people. There is a rough calculation. there is a rough calculation If you see the total TCOs of a filling and packaging line is between EUR 500 million up to EUR 750 million within 10 years. if you see the total tcos of a filling and packaging line is between eur 500 million up to eur 750 million within 10 years They can save 10% TCOs by this better performance. they can save 10% tcos by this better performance They have to invest definitely more, have to buy a more expensive engineering line, as well as to make a MSA, Modular Service Agreement with us. they have to invest definitely more have to buy a more expensive engineering line as well as to make a msa modular service agreement with us Nevertheless, also important to do this is that we have worldwide service people. nevertheless also important to do this is that we have worldwide service people If you see our people in Krones, the main part is in Germany, definitely. if you see our people in krones the main part is in germany definitely Okay, fair. okay fair We have many of our production here. we have many of our production here Also, as I mentioned before, a lot of people, more than 800, are in Africa, service people. also as i mentioned before a lot of people more than 800 are in africa service people In China, we have a small production, but also a lot of more than 1,000 of the employees there are in the service too, and so on. Also 1,600 people in the U.S., but I come few seconds also to this situation. Because on the other side, yes, I know we have a lot of people worldwide in the service, but we have a very centralized production. When you see here in the middle, the 25 figures, two-thirds of our production is in Germany. Just one-third is outside of Germany. At the moment, in Hungary, in China, a little in U.S., in Italy definitely because one of our subsidiaries or the logistic mainly is in Italy. Is it a bad situation? I don't think so. We have a concentrate production. We can use scales. In China, we have a small production, but also a lot of more than 1,000 of the employees there are in the service too, and so on. in china we have a small production but also a lot of more than 1,000 of the employees there are in the service too and so on Also 1,600 people in the U.S., but I come few seconds also to this situation. also 1,600 people in the u.s but i come few seconds also to this situation Because on the other side, yes, I know we have a lot of people worldwide in the service, but we have a very centralized production. because on the other side yes i know we have a lot of people worldwide in the service but we have a very centralized production When you see here in the middle, the 25 figures, two-thirds of our production is in Germany. when you see here in the middle the 25 figures two-thirds of our production is in germany Just one-third is outside of Germany. just one-third is outside of germany At the moment, in Hungary, in China, a little in U.S., in Italy definitely because one of our subsidiaries or the logistic mainly is in Italy. at the moment in hungary in china a little in u.s in italy definitely because one of our subsidiaries or the logistic mainly is in italy Is it a bad situation? is it a bad situation I don't think so. i don't think so We have a concentrate production. we have a concentrate production We can use scales. we can use scales We invest at the moment a lot in automation here in Germany to have here definitely advantages. What we see on the other side is that other regions, we have to be stronger, with different strategy behind. One is, for example, the U.S. We decided not to go with a big production to U.S. Why? We see no direct local competition there in the filling or in the line business. Also, our two big competitors, KHS, a German one, and Sidel, also have no big line productions in the U.S. Additionally, it's very expensive to have blue-collared employees there, are very expensive. On the other side, we need parts which must be also sent to U.S. also with tariffs. Where is the big advantage? We invest EUR 50 million in a new logistics center with a small production. We invest at the moment a lot in automation here in Germany to have here definitely advantages. we invest at the moment a lot in automation here in germany to have here definitely advantages What we see on the other side is that other regions, we have to be stronger, with different strategy behind. what we see on the other side is that other regions we have to be stronger with different strategy behind One is, for example, the U.S. one is for example the u.s We decided not to go with a big production to U.S. we decided not to go with a big production to u.s Why? why We see no direct local competition there in the filling or in the line business. we see no direct local competition there in the filling or in the line business Also, our two big competitors, KHS, a German one, and Sidel, also have no big line productions in the U.S. also our two big competitors khs a german one and sidel also have no big line productions in the u.s Additionally, it's very expensive to have blue-collared employees there, are very expensive. additionally it's very expensive to have blue-collared employees there are very expensive On the other side, we need parts which must be also sent to U.S. also with tariffs. on the other side we need parts which must be also sent to u.s also with tariffs Where is the big advantage? where is the big advantage We invest EUR 50 million in a new logistics center with a small production. we invest eur 50 million in a new logistics center with a small production We have already, you see it on the right side in Arden, NC, a big production for the Intralogistics part in the U.S. and in the process technology, we are in many states of the U.S. with already a production. Beside that, we have 15%-18% of tariffs which must be paid by our customers. We see at the moment no big advantage. Where we go with the production, what we are doing at the moment, we invest a lot in China and in India. China, we are already, but we increase here our production in order to be stronger at the Chinese market, to be nearer to our competitors. We are the market leader in China. We will be the market leader in China, and we will attack our competitors in China directly with products China for China. We have already, you see it on the right side in Arden, NC, a big production for the Intralogistics part in the U.S. and in the process technology, we are in many states of the U.S. with already a production. we have already you see it on the right side in arden, nc a big production for the intralogistics part in the u.s and in the process technology we are in many states of the u.s with already a production Beside that, we have 15%-18% of tariffs which must be paid by our customers. beside that we have 15%-18% of tariffs which must be paid by our customers We see at the moment no big advantage. we see at the moment no big advantage Where we go with the production, what we are doing at the moment, we invest a lot in China and in India. where we go with the production what we are doing at the moment we invest a lot in china and in india China, we are already, but we increase here our production in order to be stronger at the Chinese market, to be nearer to our competitors. china we are already but we increase here our production in order to be stronger at the chinese market to be nearer to our competitors We are the market leader in China. we are the market leader in china We will be the market leader in China, and we will attack our competitors in China directly with products China for China. we will be the market leader in china and we will attack our competitors in china directly with products china for china We see definitely India, a very good market for us. A lot of people need something to drink. Regulations are now open since two or three years. That it makes sense also to be there. All these investments, but will just be in the P&L, in the sales, may I would say beginning 2027. Because investments must be finalized, and then we need some months in order to bring the production on a level, not before 2027. Quick view on process technology, and Holger mentioned, yes, if you need a cold beer, process technology has in history a big share in breweries that we have sold project tickets of EUR 50 million-EUR 60 million per big brewery, but at the moment, no business here. We see a weaker business in breweries, in beer. We see definitely India, a very good market for us. we see definitely india a very good market for us A lot of people need something to drink. a lot of people need something to drink Regulations are now open since two or three years. regulations are now open since two or three years That it makes sense also to be there. that it makes sense also to be there All these investments, but will just be in the P&L, in the sales, may I would say beginning 2027. all these investments but will just be in the p&l in the sales may i would say beginning 2027 Because investments must be finalized, and then we need some months in order to bring the production on a level, not before 2027. because investments must be finalized and then we need some months in order to bring the production on a level not before 2027 Quick view on process technology, and Holger mentioned, yes, if you need a cold beer, process technology has in history a big share in breweries that we have sold project tickets of EUR 50 million-EUR 60 million per big brewery, but at the moment, no business here. quick view on process technology and holger mentioned yes if you need a cold beer process technology has in history a big share in breweries that we have sold project tickets of eur 50 million-eur 60 million per big brewery but at the moment no business here We see a weaker business in breweries, in beer. we see a weaker business in breweries in beer Yes, perhaps non-alcoholic beer was or is a driver, but not for a complete brewery. This is the reason why you see a smaller top-line growth here. Sometimes also some quarters where it's decreasing because we are concentrating on the other part of the business, which is on the left side, pumps and valves. High margin, definitely. Small tickets, EUR 1,000, EUR 2,000 per pump or valve. Up then, definitely we call it units. All the homogenizers, heat exchangers, decanters, new in our portfolio, and so on. With this, we make a very good margin, and if you see the history in the figuring of the last five, six years, you see a definitely a good job what we are doing. Next is the Intralogistics. Here, just a focus. We are not interested in high-bay warehousing as a big project. Yes, perhaps non-alcoholic beer was or is a driver, but not for a complete brewery. yes perhaps non-alcoholic beer was or is a driver but not for a complete brewery This is the reason why you see a smaller top-line growth here. this is the reason why you see a smaller top-line growth here Sometimes also some quarters where it's decreasing because we are concentrating on the other part of the business, which is on the left side, pumps and valves. sometimes also some quarters where it's decreasing because we are concentrating on the other part of the business which is on the left side pumps and valves High margin, definitely. high margin definitely Small tickets, EUR 1,000, EUR 2,000 per pump or valve. small tickets, eur 1,000, eur 2,000 per pump or valve Up then, definitely we call it units. up then definitely we call it units All the homogenizers, heat exchangers, decanters, new in our portfolio, and so on. all the homogenizers heat exchangers decanters new in our portfolio and so on With this, we make a very good margin, and if you see the history in the figuring of the last five, six years, you see a definitely a good job what we are doing. with this we make a very good margin and if you see the history in the figuring of the last five six years you see a definitely a good job what we are doing Next is the Intralogistics. next is the intralogistics Here, just a focus. here just a focus We are not interested in high-bay warehousing as a big project. we are not interested in high-bay warehousing as a big project We are more in the automated picking solutions. 60% of the sales in the intralogistic is with the beverage industry. 40% with a lot of other industries, groceries, and so on. We are strong here definitely in the U.S. The market is incredible big worldwide. 60% is of all in the production of not only all our customers worldwide, is not automated. This is a very big market. Once again, we are very small here if you compare with the big players. Yeah. Definitely we make our business. It's a little bit seasonality here. Yeah. It's more at the end of the year where you see more top-line growth and not during the year. Yeah. Coming last but not least, the last two minutes to our outlook. We are more in the automated picking solutions. 60% of the sales in the intralogistic is with the beverage industry. 40% with a lot of other industries, groceries, and so on. we are more in the automated picking solutions 60% of the sales in the intralogistic is with the beverage industry 40% with a lot of other industries groceries and so on We are strong here definitely in the U.S. we are strong here definitely in the u.s The market is incredible big worldwide. 60% is of all in the production of not only all our customers worldwide, is not automated. the market is incredible big worldwide 60% is of all in the production of not only all our customers worldwide is not automated This is a very big market. this is a very big market Once again, we are very small here if you compare with the big players. once again we are very small here if you compare with the big players Yeah. yeah Definitely we make our business. definitely we make our business It's a little bit seasonality here. it's a little bit seasonality here Yeah. yeah It's more at the end of the year where you see more top-line growth and not during the year. it's more at the end of the year where you see more top-line growth and not during the year Yeah. yeah Coming last but not least, the last two minutes to our outlook. coming last but not least the last two minutes to our outlook Yeah. I think you know 3%-5% sales growth, I know looks not so big. Yeah. On the other side, we have last year 2025 7%, before 12%, 9%. It is that we are at the moment limited by our production facilities or by performance. We need our new plants definitely, but they are not online. 2026 is a question for 2027. Also here, currency translation effects, first time we do this. Why? Because if you see Q1 last year 2025, average in US dollar was EUR 1.05. And now this year, EUR 1.17. You see a big difference and that's the reason to make it comparable. It's without currency translation. Margin growth. Yes, 10.7%-11.1%. And the ROCE to 19%-20%. All below is with a disclaimer that we don't see any big problems in the supply chain, for example. Yeah. yeah I think you know 3%-5% sales growth, I know looks not so big. i think you know 3%-5% sales growth i know looks not so big Yeah. yeah On the other side, we have last year 2025 7%, before 12%, 9%. on the other side we have last year 2025 7% before 12% 9% It is that we are at the moment limited by our production facilities or by performance. it is that we are at the moment limited by our production facilities or by performance We need our new plants definitely, but they are not online. 2026 is a question for 2027. we need our new plants definitely but they are not online 2026 is a question for 2027 Also here, currency translation effects, first time we do this. also here currency translation effects first time we do this Why? why Because if you see Q1 last year 2025, average in US dollar was EUR 1.05. because if you see q1 last year 2025 average in us dollar was eur 1.05 And now this year, EUR 1.17. and now this year eur 1.17 You see a big difference and that's the reason to make it comparable. you see a big difference and that's the reason to make it comparable It's without currency translation. it's without currency translation Margin growth. margin growth Yes, 10.7%-11.1%. yes 10.7%-11.1% And the ROCE to 19%-20%. and the roce to 19%-20% All below is with a disclaimer that we don't see any big problems in the supply chain, for example. all below is with a disclaimer that we don't see any big problems in the supply chain for example These are the midterm targets around EUR 7 billion in 2028. A margin target of, no, it's a wide range, 11%-13%. We want to grow on one hand and stay in this margin target. That's more important, a profitable growth. That's the key behind. Last but not least, very short, some share informations. Perhaps you know we are owned mainly by Kronseder Family with around 25%. Schadeberg Family also a family, has around about 6%. Free float of 24%. Our dividend policy is 25%-30% of the after-tax is for dividends. We increased this two weeks ago in our AGM. Last but not least, why is it an attractive investment? We are leading in a stable growing market, food and mainly beverages. Our midterm targets are quite clear and named by profitable growth. These are the midterm targets around EUR 7 billion in 2028. these are the midterm targets around eur 7 billion in 2028 A margin target of, no, it's a wide range, 11%-13%. a margin target of no it's a wide range 11%-13% We want to grow on one hand and stay in this margin target. we want to grow on one hand and stay in this margin target That's more important, a profitable growth. that's more important a profitable growth That's the key behind. that's the key behind Last but not least, very short, some share informations. last but not least very short some share informations Perhaps you know we are owned mainly by Kronseder Family with around 25%. perhaps you know we are owned mainly by kronseder family with around 25% Schadeberg Family also a family, has around about 6%. schadeberg family also a family has around about 6% Free float of 24%. free float of 24% Our dividend policy is 25%-30% of the after-tax is for dividends. our dividend policy is 25%-30% of the after-tax is for dividends We increased this two weeks ago in our AGM. we increased this two weeks ago in our agm Last but not least, why is it an attractive investment? last but not least why is it an attractive investment We are leading in a stable growing market, food and mainly beverages. we are leading in a stable growing market food and mainly beverages Our midterm targets are quite clear and named by profitable growth. our midterm targets are quite clear and named by profitable growth We do not talk about the cash topic, but at the end it's a big growth, or let me say a stable situation also in the cash. We have around about EUR 400 million-EUR 500 million net cash. Or let me say, no bank loans. This is very important. A very strong equity also with 42%-43%. Resilient business model, I think, I hope you understand what I mean when I say it's a non-cycle business. We use digitalization. We have more than 600 people. 600 working just for digitalization to implement it in our existing solution, and economic sustainability is definitely the focus with the TCOs. I think, Holger, that's my presentation. Sorry, I need one minute more than planned, but it's up to you if there are questions. We do not talk about the cash topic, but at the end it's a big growth, or let me say a stable situation also in the cash. we do not talk about the cash topic but at the end it's a big growth or let me say a stable situation also in the cash We have around about EUR 400 million-EUR 500 million net cash. we have around about eur 400 million-eur 500 million net cash Or let me say, no bank loans. or let me say no bank loans This is very important. this is very important A very strong equity also with 42%-43%. a very strong equity also with 42%-43% Resilient business model, I think, I hope you understand what I mean when I say it's a non-cycle business. resilient business model i think i hope you understand what i mean when i say it's a non-cycle business We use digitalization. we use digitalization We have more than 600 people. 600 working just for digitalization to implement it in our existing solution, and economic sustainability is definitely the focus with the TCOs. we have more than 600 people 600 working just for digitalization to implement it in our existing solution and economic sustainability is definitely the focus with the tcos I think, Holger, that's my presentation. i think holger that's my presentation Sorry, I need one minute more than planned, but it's up to you if there are questions. sorry i need one minute more than planned but it's up to you if there are questions

Speaker 1: Thanks so much. You could feel the enthusiasm through the microphone, so I very much appreciate the dynamic. It's perfect for the last slot of the day, and I think everybody woke up again and paid attention. We do have a few questions, and I would like to reflect on them, beginning with the first one, talking about automation efforts in the production facility. What do you think is the effect on full-time employees and the P&L coming from that initiative? Thanks so much. thanks so much You could feel the enthusiasm through the microphone, so I very much appreciate the dynamic. you could feel the enthusiasm through the microphone so i very much appreciate the dynamic It's perfect for the last slot of the day, and I think everybody woke up again and paid attention. it's perfect for the last slot of the day and i think everybody woke up again and paid attention We do have a few questions, and I would like to reflect on them, beginning with the first one, talking about automation efforts in the production facility. we do have a few questions and i would like to reflect on them beginning with the first one talking about automation efforts in the production facility What do you think is the effect on full-time employees and the P&L coming from that initiative? what do you think is the effect on full-time employees and the p&l coming from that initiative

Speaker 2: Well, number one is we invest at the moment, which means, on the P&L at the moment, not so much. It's CapEx. It's half of the 4% of the sales we invest is here in Germany. Yeah. Is in a new logistic center here in order to automate also our production logistic. Yeah. It's not that we want to reduce our employee amount, if this is the question. It's more growing without growing. Yeah. If you see that we have in the next year's growth rates, yeah, we have contracts, we have a good market on one hand, we need definitely be faster in the project solution and also deliver faster our after-sales. I hope this answers the question. Well, number one is we invest at the moment, which means, on the P&L at the moment, not so much. well number one is we invest at the moment which means on the p&l at the moment not so much It's CapEx. it's capex It's half of the 4% of the sales we invest is here in Germany. it's half of the 4% of the sales we invest is here in germany Yeah. yeah Is in a new logistic center here in order to automate also our production logistic. is in a new logistic center here in order to automate also our production logistic Yeah. yeah It's not that we want to reduce our employee amount, if this is the question. it's not that we want to reduce our employee amount if this is the question It's more growing without growing. it's more growing without growing Yeah. yeah If you see that we have in the next year's growth rates, yeah, we have contracts, we have a good market on one hand, we need definitely be faster in the project solution and also deliver faster our after-sales. if you see that we have in the next year's growth rates yeah we have contracts we have a good market on one hand we need definitely be faster in the project solution and also deliver faster our after-sales I hope this answers the question. i hope this answers the question

Speaker 1: Yep, it did. I just had to activate my microphone again. Yep, it did. yep it did I just had to activate my microphone again. i just had to activate my microphone again

Speaker 2: Okay. Okay. okay

Speaker 1: You are rolling out capacity in the second half simultaneously in the U.S., China, India. The question is, how do you manage the execution risks that come with it, and will this local sourcing effectively shield margins from trade tariffs or more effectively shield margins from trade tariffs? You are rolling out capacity in the second half simultaneously in the U.S., China, India. you are rolling out capacity in the second half simultaneously in the u.s china india The question is, how do you manage the execution risks that come with it, and will this local sourcing effectively shield margins from trade tariffs or more effectively shield margins from trade tariffs? the question is how do you manage the execution risks that come with it and will this local sourcing effectively shield margins from trade tariffs or more effectively shield margins from trade tariffs

Speaker 2: If we go at first to China, we are already in China with the production. I don't see any execution risks because we put more. For example, we produce more different machines in China in 2027. It's not second half of 2026. It's the 2027, yeah, where we produce definitely more. I see here lower risk, it's definitely a Chinese product for China, yeah, developed also by our Chinese colleagues. In the U.S., yes, I know that is a kind of risk, keep in mind, we have no competitors there. Yeah. We see we calculated several times last year if we should go to U.S. as a production end, if you see that the salaries are 15%-18% higher than in low-cost country, Germany. Sorry to say this. Yeah. This is the reality. Yeah. What happens in two years? If we go at first to China, we are already in China with the production. if we go at first to china we are already in china with the production I don't see any execution risks because we put more. i don't see any execution risks because we put more For example, we produce more different machines in China in 2027. for example we produce more different machines in china in 2027 It's not second half of 2026. it's not second half of 2026 It's the 2027, yeah, where we produce definitely more. it's the 2027 yeah where we produce definitely more I see here lower risk, it's definitely a Chinese product for China, yeah, developed also by our Chinese colleagues. i see here lower risk it's definitely a chinese product for china yeah developed also by our chinese colleagues In the U.S., yes, I know that is a kind of risk, keep in mind, we have no competitors there. in the u.s yes i know that is a kind of risk keep in mind we have no competitors there Yeah. yeah We see we calculated several times last year if we should go to U.S. as a production end, if you see that the salaries are 15%-18% higher than in low-cost country, Germany. we see we calculated several times last year if we should go to u.s as a production end if you see that the salaries are 15%-18% higher than in low-cost country germany Sorry to say this. sorry to say this Yeah. yeah This is the reality. this is the reality Yeah. yeah What happens in two years? what happens in two years Growing investment needs minimum two years that you produce a first machine. What is the strategy of the U.S. government in two years? How secured are your investments? Combined that the customers have to pay. I know, but they have no chance. We have seen some month after April last year, Rose Garden presentation some months. The orders were decreasing, but they are coming now back. We see now more growth in the U.S. than in other regions because our customers realized there will be no time without any tariffs. That is the situation. Growing investment needs minimum two years that you produce a first machine. growing investment needs minimum two years that you produce a first machine What is the strategy of the U.S. government in two years? what is the strategy of the u.s government in two years How secured are your investments? how secured are your investments Combined that the customers have to pay. combined that the customers have to pay I know, but they have no chance. i know but they have no chance We have seen some month after April last year, Rose Garden presentation some months. we have seen some month after april last year rose garden presentation some months The orders were decreasing, but they are coming now back. the orders were decreasing but they are coming now back We see now more growth in the U.S. than in other regions because our customers realized there will be no time without any tariffs. we see now more growth in the u.s than in other regions because our customers realized there will be no time without any tariffs That is the situation. that is the situation

Speaker 1: Thank you. There was one question regarding currency headwinds into Q2, but you have already answered that during your presentation, so I would like to skip it and come to the next questions. There are quite a few questions surrounding growth acceleration to match your guidance for the full year. Let me start out with the first one. Reading that growth, sales growth, I am talking about in Q1, has been at 1.4% versus the full year guidance that is 3%-5%, basically implying that we will see solid acceleration in the remaining quarters and probably in the second half. Is that what investors could expect, should expect. Is that realistic? Thank you. thank you There was one question regarding currency headwinds into Q2, but you have already answered that during your presentation, so I would like to skip it and come to the next questions. there was one question regarding currency headwinds into q2 but you have already answered that during your presentation so i would like to skip it and come to the next questions There are quite a few questions surrounding growth acceleration to match your guidance for the full year. there are quite a few questions surrounding growth acceleration to match your guidance for the full year Let me start out with the first one. let me start out with the first one Reading that growth, sales growth, I am talking about in Q1, has been at 1.4% versus the full year guidance that is 3%-5%, basically implying that we will see solid acceleration in the remaining quarters and probably in the second half. reading that growth sales growth i am talking about in q1 has been at 1.4% versus the full year guidance that is 3%-5% basically implying that we will see solid acceleration in the remaining quarters and probably in the second half Is that what investors could expect, should expect. is that what investors could expect should expect Is that realistic? is that realistic

Speaker 2: Thanks, Holger. At first, 100% right. We have 1.4 growth if we put the FX translation out. If you see it on the segments, you see that we are in the core business in our range, 2%-4% growth. Situation is Intralogistics, where was a negative growth. Where we see a 10%-15% growth for the full year. As I mentioned before, Intralogistics is a business where you make more growth at the year-end. I do not know the details why, but it is in the market a stronger Q4. This is what you see the last five to six years. The strongest growth is definitely in Q4. Number two is also in the process technology we have in our base still in the comparably, still a brewery. We are making now a plant for ice cream. Interesting. Thanks, Holger. thanks holger At first, 100% right. at first 100% right We have 1.4 growth if we put the FX translation out. we have 1.4 growth if we put the fx translation out If you see it on the segments, you see that we are in the core business in our range, 2%-4% growth. if you see it on the segments you see that we are in the core business in our range 2%-4% growth Situation is Intralogistics, where was a negative growth. situation is intralogistics where was a negative growth Where we see a 10%-15% growth for the full year. where we see a 10%-15% growth for the full year As I mentioned before, Intralogistics is a business where you make more growth at the year-end. as i mentioned before intralogistics is a business where you make more growth at the year-end I do not know the details why, but it is in the market a stronger Q4. i do not know the details why but it is in the market a stronger q4 This is what you see the last five to six years. this is what you see the last five to six years The strongest growth is definitely in Q4. the strongest growth is definitely in q4 Number two is also in the process technology we have in our base still in the comparably, still a brewery. number two is also in the process technology we have in our base still in the comparably still a brewery We are making now a plant for ice cream. we are making now a plant for ice cream Interesting. interesting New business for us, definitely more sales here. You see in the core, it's okay. It's more a question of the two other smaller segments. I don't think that we see a big growth in the second quarter. Why? Because it's definitely regarding that we are mainly located in Germany and also in Bavaria. We have a lot of bank holidays. We have Pfingsten, we have Easter in the second quarter. If we have two days more holidays per month, this is the reduction of 10% in performance. This is also what you see that you have more or less in the production a weaker second quarter. I see definitely a stronger second half year and also in the other segment, as mentioned, in order to reach our 3%-5% sales target. New business for us, definitely more sales here. new business for us definitely more sales here You see in the core, it's okay. you see in the core it's okay It's more a question of the two other smaller segments. it's more a question of the two other smaller segments I don't think that we see a big growth in the second quarter. i don't think that we see a big growth in the second quarter Why? why Because it's definitely regarding that we are mainly located in Germany and also in Bavaria. because it's definitely regarding that we are mainly located in germany and also in bavaria We have a lot of bank holidays. we have a lot of bank holidays We have Pfingsten, we have Easter in the second quarter. we have pfingsten we have easter in the second quarter If we have two days more holidays per month, this is the reduction of 10% in performance. if we have two days more holidays per month this is the reduction of 10% in performance This is also what you see that you have more or less in the production a weaker second quarter. this is also what you see that you have more or less in the production a weaker second quarter I see definitely a stronger second half year and also in the other segment, as mentioned, in order to reach our 3%-5% sales target. i see definitely a stronger second half year and also in the other segment as mentioned in order to reach our 3%-5% sales target

Speaker 1: Great. Thank you. I think hand in hand with the acceleration that we will see on the revenue side, the question regarding the EBITDA margin, which was that the question reads 10.8% in the first quarter. Your guidance is for 10.7%-11.1%, that margin expansion that we will see in the remaining year to maybe reach the upper end of the guidance could come from additional sales growth. Great. great Thank you. thank you I think hand in hand with the acceleration that we will see on the revenue side, the question regarding the EBITDA margin, which was that the question reads 10.8% in the first quarter. i think hand in hand with the acceleration that we will see on the revenue side the question regarding the ebitda margin which was that the question reads 10.8% in the first quarter Your guidance is for 10.7%-11.1%, that margin expansion that we will see in the remaining year to maybe reach the upper end of the guidance could come from additional sales growth. your guidance is for 10.7%-11.1% that margin expansion that we will see in the remaining year to maybe reach the upper end of the guidance could come from additional sales growth

Speaker 2: Number one, we have the 10.7%-11.1%. Let me this first. Some investors ask me, "What must happen if we have to get 11 this year, 2026?" We need a world without any problems, without negative situations. We are not directly affected in our business, nevertheless our customers are. It's definitely if they have more cost pressures, definitely they can less invest, which means not a direct top line growth, but it then we coming to the mix situation. This is what we always discuss every quarter. How is the mix between machine business and after sales business? We do not publish the after sales figures. It's no secret margin is higher. If you have definitely a mix that with a higher after sales than a machine growth in one quarter, you have a better margin. Number one, we have the 10.7%-11.1%. number one we have the 10.7%-11.1% Let me this first. let me this first Some investors ask me, "What must happen if we have to get 11 this year, 2026?" We need a world without any problems, without negative situations. some investors ask me "what must happen if we have to get 11 this year 2026?" we need a world without any problems without negative situations We are not directly affected in our business, nevertheless our customers are. we are not directly affected in our business nevertheless our customers are It's definitely if they have more cost pressures, definitely they can less invest, which means not a direct top line growth, but it then we coming to the mix situation. it's definitely if they have more cost pressures definitely they can less invest which means not a direct top line growth but it then we coming to the mix situation This is what we always discuss every quarter. this is what we always discuss every quarter How is the mix between machine business and after sales business? how is the mix between machine business and after sales business We do not publish the after sales figures. we do not publish the after sales figures It's no secret margin is higher. it's no secret margin is higher If you have definitely a mix that with a higher after sales than a machine growth in one quarter, you have a better margin. if you have definitely a mix that with a higher after sales than a machine growth in one quarter you have a better margin This is what you always see in the fourth quarter. Why? Because a lot of our customers make after sales business in the first quarter. Over summertime, when it's hot outside, they produce, they have no time that our colleagues maintain the lines. After summer, September, October, the machines are running 24/7. They need after sales, then the fourth quarter is coming. I don't think that we are at the end of the margin. It's possible, it's everything, to be realistic, a lot of analysts have it more in the mid-size. Then we have still a growth of 30 basis points in the margin. After years with 50 basis points, I think it's a good way in order to reach our margin targets midterm, which is 11%-13% in 2028. This is what you always see in the fourth quarter. this is what you always see in the fourth quarter Why? why Because a lot of our customers make after sales business in the first quarter. because a lot of our customers make after sales business in the first quarter Over summertime, when it's hot outside, they produce, they have no time that our colleagues maintain the lines. over summertime when it's hot outside they produce they have no time that our colleagues maintain the lines After summer, September, October, the machines are running 24/7. after summer september october the machines are running 24/7 They need after sales, then the fourth quarter is coming. they need after sales then the fourth quarter is coming I don't think that we are at the end of the margin. i don't think that we are at the end of the margin It's possible, it's everything, to be realistic, a lot of analysts have it more in the mid-size. it's possible it's everything to be realistic a lot of analysts have it more in the mid-size Then we have still a growth of 30 basis points in the margin. then we have still a growth of 30 basis points in the margin After years with 50 basis points, I think it's a good way in order to reach our margin targets midterm, which is 11%-13% in 2028. after years with 50 basis points i think it's a good way in order to reach our margin targets midterm which is 11%-13% in 2028

Speaker 1: Good. Looking at the time, we're already two minutes over. I do only have two questions left. I would say for those of you who are interested, stay with us. We're going to be done in a very few moments. Just to maybe answer those two remaining questions. One of them also concerning exactly the 2028 guidance that you just referred to or the growth potentials. In 2028, you're targeting revenues of around EUR 7 billion, which is quite a bit versus 2025 and forecast at 2026 growth. If you look at the potential underlying growth rate that you need to accomplish in order to get to EUR 7 billion, what is driving that acceleration and growth in 2027, 2028? You've alluded to that in your presentation, but maybe just as a quick wrap-up. Good. good Looking at the time, we're already two minutes over. looking at the time we're already two minutes over I do only have two questions left. i do only have two questions left I would say for those of you who are interested, stay with us. i would say for those of you who are interested stay with us We're going to be done in a very few moments. we're going to be done in a very few moments Just to maybe answer those two remaining questions. just to maybe answer those two remaining questions One of them also concerning exactly the 2028 guidance that you just referred to or the growth potentials. one of them also concerning exactly the 2028 guidance that you just referred to or the growth potentials In 2028, you're targeting revenues of around EUR 7 billion, which is quite a bit versus 2025 and forecast at 2026 growth. in 2028 you're targeting revenues of around eur 7 billion which is quite a bit versus 2025 and forecast at 2026 growth If you look at the potential underlying growth rate that you need to accomplish in order to get to EUR 7 billion, what is driving that acceleration and growth in 2027, 2028? if you look at the potential underlying growth rate that you need to accomplish in order to get to eur 7 billion what is driving that acceleration and growth in 2027 2028 You've alluded to that in your presentation, but maybe just as a quick wrap-up. you've alluded to that in your presentation but maybe just as a quick wrap-up

Speaker 2: Yeah. Okay, no problem at all. Well, yes, it is ambitious target, no doubt. Yeah. We have seen very good years now, as mentioned before, why we have a smaller growth in 2026. Nevertheless, the base is the market. What I mentioned about the consumption of beverages in water, for example, the average is 4%. This is how the market grows. We are a market leader, we grow more than the market with our very good solutions in order focused on the cost of our customers. That's the reason why we see that we can grow faster than the market. If you see it combined with water, it's around about 4%, 4.5%. That's market growth. We should go above. To get this around EUR 7 billion, I think it's not easy, definitely. Yeah. yeah Okay, no problem at all. okay no problem at all Well, yes, it is ambitious target, no doubt. well yes it is ambitious target no doubt Yeah. yeah We have seen very good years now, as mentioned before, why we have a smaller growth in 2026. we have seen very good years now as mentioned before why we have a smaller growth in 2026 Nevertheless, the base is the market. nevertheless the base is the market What I mentioned about the consumption of beverages in water, for example, the average is 4%. what i mentioned about the consumption of beverages in water for example the average is 4% This is how the market grows. this is how the market grows We are a market leader, we grow more than the market with our very good solutions in order focused on the cost of our customers. we are a market leader we grow more than the market with our very good solutions in order focused on the cost of our customers That's the reason why we see that we can grow faster than the market. that's the reason why we see that we can grow faster than the market If you see it combined with water, it's around about 4%, 4.5%. if you see it combined with water it's around about 4% 4.5% That's market growth. that's market growth We should go above. we should go above To get this around EUR 7 billion, I think it's not easy, definitely. to get this around eur 7 billion i think it's not easy definitely We have to look what happens in the world tomorrow. What happens today in Switzerland or in the night, what happens tomorrow in other regions, we will see how the Middle East situation can be solved and so on. This is definitely also where we have to look, also in our market, where on the other side, the consumption of beverages is a non-cycle business. This is the way with the new production facilities, we can manage. We have to look what happens in the world tomorrow. we have to look what happens in the world tomorrow What happens today in Switzerland or in the night, what happens tomorrow in other regions, we will see how the Middle East situation can be solved and so on. what happens today in switzerland or in the night what happens tomorrow in other regions we will see how the middle east situation can be solved and so on This is definitely also where we have to look, also in our market, where on the other side, the consumption of beverages is a non-cycle business. this is definitely also where we have to look also in our market where on the other side the consumption of beverages is a non-cycle business This is the way w ith the new production facilities, we can manage. this is the way w ith the new production facilities we can manage

Speaker 1: Thank you. That brings me to the last question, and this is one that we can talk about for a long time or a short time, and I'll prefer the latter. It basically says that you are trading at a multiple that even historically speaking, is not high. It's less than 7x EBIT, the lowest since 2009. Could you give us two or three investor concerns that you hear why people are shying away from Krones? Once again, I know there is a potential long answer in the making, but if we could just keep it short, that would be much appreciated. Thank you. That brings me to the last question, and this is one that we can talk about for a long time or a short time, and I'll prefer the latter. thank you. that brings me to the last question and this is one that we can talk about for a long time or a short time and i'll prefer the latter It basically says that you are trading at a multiple that even historically speaking, is not hi gh. it basically says that you are trading at a multiple that even historically speaking is not hi gh It's less than 7x EBIT, the lowest since 2009. it's less than 7x ebit the lowest since 2009 Could you give us two or three investor concerns that you hear why people are shying away from Krones? could you give us two or three investor concerns that you hear why people are shying away from krones Once again, I know there is a potential long answer in the making, but if we could just keep it short, that would be much appreciated. once again i know there is a potential long answer in the making but if we could just keep it short that would be much appreciated

Speaker 2: Sure. I think it's not easy at the end of the day, and I'm not sure if I have the only one right answer to it. On one hand, what I present to you is our very resilient business model on this very growing good market. On the other side, yes, Holger, one of your last questions, it's a very ambitious target we see in 2028, no doubt. If I see what mwb, Thomas Wissler, the analyst, have written, what he has calculated, the EUR 150 target price, also my other 12, 13 analysts are more or less similar. Why we have a calculation of EUR 150, whereas on the other side, we see EUR 115 at the moment. Sure. sure I think it's not easy at the end of the day, and I'm not sure if I have the only one right answer to it. i think it's not easy at the end of the day and i'm not sure if i have the only one right answer to it On one hand, what I present to you is our very resilient business model on this very growing good market. on one hand what i present to you is our very resilient business model on this very growing good market On the other side, yes, Holger, one of your last questions, it's a very ambitious target we see in 2028, no doubt. on the other side yes holger one of your last questions it's a very ambitious target we see in 2028 no doubt If I see what mwb, Thomas Wissler, the analyst, have written, what he has calculated, the EUR 150 target price, also my other 12, 13 analysts are more or less similar. if i see what mwb thomas wissler the analyst have written what he has calculated the eur 150 target price also my other 12 13 analysts are more or less similar Why we have a calculation of EUR 150, whereas on the other side, we see EUR 115 at the moment. why we have a calculation of eur 150 whereas on the other side we see eur 115 at the moment I think on one hand, it's definitely a situation that a lot of investors looking to other companies, to other industries, semiconductors, everybody's investing. I don't know who is investing, everybody in the big U.S. IPO last week, and also in semiconductor companies and so on. Perhaps it's not so easy. On the other side, yes, we are in a lot of investors meetings, more or less, the questions are similar, but I think to have here right answer is very complex. I think there is a possibility also in the share price, but for me, most important that I bring you the story to Krones, and you have to decide yes or no in order to participate on our success growth full story. I think on one hand, it's definitely a situation that a lot of investors looking to other companies, to other industries, semiconductors, everybody's investing. i think on one hand it's definitely a situation that a lot of investors looking to other companies to other industries semiconductors everybody's investing I don't know who is investing, everybody in the big U.S. i don't know who is investing everybody in the big u.s IPO last week, and also in semiconductor companies and so on. ipo last week and also in semiconductor companies and so on Perhaps it's not so easy. perhaps it's not so easy On the other side, yes, we are in a lot of investors meetings, more or less, the questions are similar, but I think to have here right answer is very complex. on the other side yes we are in a lot of investors meetings more or less the questions are similar but i think to have here right answer is very complex I think there is a possibility also in the share price, but for me, most important that I bring you the story to Krones, and you have to decide yes or no in order to participate on our success growth full story. i think there is a possibility also in the share price but for me most important that i bring you the story to krones and you have to decide yes or no in order to participate on our success growth full story

Speaker 1: Great. Thank you so much. I guess that's a good summary and, well, final words, it doesn't sound too well, final words to end this presentation. I thank everybody for participating through the day and of course, also in the presentation of Olaf Scholz featuring Krones. Thanks for the questions, all of you. Have a nice afternoon, maybe a cold beer or also water, which is good for you as well. We'll see you again at one of our next round tables, and until then, all the best. Thanks, Olaf. Thanks everybody. Great. great Thank you so much. thank you so much I guess that's a good summary and, well, final words, it doesn't sound too well, final words to end this presentation. i guess that's a good summary and well final words it doesn't sound too well final words to end this presentation I thank everybody for participating through the day and of course, also in the presentation of Olaf Scholz featuring Krones. i thank everybody for participating through the day and of course also in the presentation of olaf scholz featuring krones Thanks for the questions, all of you. thanks for the questions all of you Have a nice afternoon, maybe a cold beer or also water, which is good for you as well. have a nice afternoon maybe a cold beer or also water which is good for you as well We'll see you again at one of our next round tables, and until then, all the best. we'll see you again at one of our next round tables and until then all the best Thanks, Olaf. thanks olaf Thanks everybody. thanks everybody

Speaker 2: Thanks to everybody. Thanks Holger and your team. Thanks to everybody. thanks to everybody Thanks Holger and your team. thanks holger and your team

Speaker 1: Thank you. Thank you. thank you