DGAP-News: Krones AG / Key word(s): Preliminary Results Krones AG: Krones continued its profitable growth in 2015 17.03.2016 / 08:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Corporate news release 17 March 2016 Krones continued its profitable growth in 2015 - Revenue rose 7.5% in 2015 to EUR3.17 billion - EBT margin improved from 6.5% in the previous year to 7.0% - Dividend for 2015 to increase to EUR1.45 per share (previous year: EUR1.25) - Krones is positive about 2016 and expects earnings to grow Krones, the world's leading manufacturer of filling and packaging technology, met its forecasts for all key financial performance indicators in the 2015 financial year. Revenue rose 7.5% from EUR2.95 billion in the previous year to EUR3.17 billion. That exceeds Krones' growth target of 4% for the year 2015. Demand in Krones' markets developed well overall in 2015. The company was able to expand its business considerably thanks to its broad range of products and services and strong global presence. Capital spending among the company's customers was at a good level all year. New orders increased 4.9% year-on-year in 2015, from EUR3.04 billion to EUR3.19 billion. At 31 December 2015, Krones had orders on hand totalling EUR1.09 billion (previous year: EUR1.08 billion). Krones improved profitability as forecast Krones continued its earnings growth in 2015. Earnings before taxes (EBT) rose 16.4% from EUR191.8 million in the previous year to EUR223.3 million. The EBT margin, the ratio of earnings before taxes to revenue, advanced from 6.5% to 7.0%. Thus, Krones has met its EBT margin target for 2015. Krones' improved profitability can be attributed largely to increased efficiency resulting from measures taken under the Value strategy programme. Market prices did not provide any positive effects. Krones' net income was up 15.2%, from EUR135.7 million in the previous year to EUR156.3 million in 2015. Earnings per share rose to EUR4.98 (previous year: EUR4.30). Very robust financial and capital structure Krones generated free cash flow of EUR64.6 million in 2015 (previous year: EUR152.1 million). The return on capital employed (ROCE), that is the ratio of EBIT to average net tied-up capital, increased to 17.7% in the reporting period (previous year: 16.4%). With that, the company exceeded its ROCE target of 17% for 2015. At the end of 2015, Krones had cash and cash equivalents totalling EUR364.6 million (previous year: EUR336.4 million). The company had no bank debt at the end of the 2015 reporting period. The equity ratio was 41.0% at the end of 2015, which is up slightly from the year-earlier figure of 40.7%. Overall, Krones continues to possess an exceptionally robust financial and capital structure. All figures stated here are provisional and may change following completion of the audit. Krones to raise dividend to EUR1.45 per share The Executive Board and the Supervisory Board will propose to the annual shareholders' meeting a dividend of EUR1.45 per share (previous year: EUR1.25). The planned payout corresponds to 29% of consolidated net income and lies near the upper limit of the target corridor (25% to 30%). Outlook Based on the current macroeconomic prospects and developments in the markets relevant to Krones, the company expects consolidated revenue to grow by 3% in 2016. The company's earnings are set to improve yet again this year. Krones expects to achieve an EBT margin of 7.0% in 2016. The company is aiming to increase its third strategy target, ROCE, to 18% this year. Krones will publish its annual report for 2015 and its report on the first quarter of 2016 on 28 April 2016.

Key Figures for 2015                              2015     2014   Change
Revenue                           EUR million  3,173.5  2,953.4   + 7.5%
New orders                        EUR million  3,189.0  3,040.0   + 4.9%
Orders on hand at 31 December     EUR million  1,094.6  1,079.1   + 1.4%

EBITDA                            EUR million    305.3    276.3  + 10.5%
EBIT                              EUR million    216.9    185.1  + 17.2%
EBT                               EUR million    223.3    191.8  + 16.4%
EBT margin                                  %      7.0      6.5        -
Consolidated net income           EUR million    156.3    135.7  + 15.2%
Earnings per share                        EUR     4.98     4.30  + 15.8%
Dividend per share                        EUR    1.45*     1.25  + 16.0%

Capital expenditure for PP&E
and intangible assets             EUR million    102.6     94.6    + 8.0
Free cash flow                    EUR million     64.6    152.1   - 87.5
Net cash and cash equivalents**

at 31 December                    EUR million    364.6    336.4   + 28.2

Employees at 31 December
Worldwide                                       13,346   12,624    + 722
Germany                                          9,767    9,344    + 423
Outside Germany                                  3,579    3,280    + 299

* As per proposal for the appropriation of retained earnings ** Cash and cash equivalents less debt Contact: Olaf Scholz Head of Investor Relations, Krones AG Phone: +49 9401 70-1169 E-mail: [email protected] --------------------------------------------------------------------------- 17.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Krones AG Böhmerwaldstraße 5 93073 Neutraubling Germany Phone: +49 (0)9401 701169 Fax: +49 (0)9401 709 1 1169 E-mail: [email protected] Internet: www.krones.com ISIN: DE0006335003 WKN: 633500 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 446035 17.03.2016