Ad-hoc disclosure – Executive Board of Krones AG decides further reduction in the workforce

In order to secure its future profitability and competitiveness, Krones is to adjust the size of its workforce to the lower short to medium-term business volume. To this end, Krones had previously made individual and voluntary offers to a portion of the workforce in Germany to terminate their employment contracts. In total, around 400 employees accepted these offers.

The Executive Board of Krones AG today adopted further structural measures for capacity adjustment, deciding on a further reduction by 350 positions at Krones locations in Germany. This additional reduction in the workforce will be implemented in a socially responsible manner.

The total expense of the structural measures for capacity adjustment in the 2020 financial year will be around €65 million. In consequence, the Executive Board expects an EBITDA margin for 2020 of 3.5 % to 4.0 %. Excluding the expense of the workforce reduction measures, this corresponds to the previous guidance for the EBITDA margin of 5.5% to 6.0%. In addition, the Executive Board expects goodwill impairments and other value adjustments in a total amount of around €10 million for the full 2020 financial year.

Explanations of the cited financial performance indicators are provided in the Krones Group’s Annual Report online at https://www.krones.com/media/downloads/GB_2019_Konzern_e.pdf, primarily on pages 49 onwards and page 57.