Preliminary Free Cash Flow in fiscal year 2020 above market expectations
The preliminary and unaudited free cash flow for fiscal year 2020 is around EUR 0.7 billion, exceeding current market expectations of around EUR 0.5 billion according to the consensus of VARA Research.
The strong free cash flow was achieved in a challenging market environment through consistent and disciplined cash management, in particular through concerted measures to optimize working capital through active management of inventories, receivables and payables. This was complemented by a positive earnings performance in both divisions. Knorr-Bremse expects that the reduced working capital at the end of the year 2020 will increase again in 2021.
For fiscal year 2020, Knorr-Bremse expects sales at the upper end of the forecasted corridor of EUR 5.9-6.2 billion and an EBITDA margin slightly above the forecast of 16.5-17.5%.
Knorr-Bremse will publish its preliminary and unaudited key figures for fiscal year 2020 and the fourth quarter of 2020 at its annual press conference on March 4, 2021. In addition to the key figures, Knorr-Bremse will then also publish its forecast for fiscal year 2021. The full annual and consolidated financial statements will be published on March 31, 2021.
Explanations and reconciliations of the key financial figures used can be found in the Knorr-Bremse AG Annual Report 2019 , there in particular on pages 75 ff. and 102.