Commerzbank Sector Conference Week. Dürr Aktiengesellschaft Ralf Dieter, CEO Günter Dielmann, IR

Transcription

1 Commerzbank Sector Conference Week Dürr Aktiengesellschaft Ralf Dieter, CEO Günter Dielmann, IR Frankfurt, August 25, 2010

2 Disclaimer This investor presentation has been prepared independently by Dürr AG ( Dürr ). The presentation contains statements which address such key issues as Dürr s strategy, future financial results, market positions and product development. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. -2-

3 Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Financial overview and outlook -3-

4 Dürr: Global leader with strong competitive position World market leader in 90% of Dürr s business portfolio All automobile OEMs worldwide as customers Large installed base supporting service growth Strong emerging markets presence with more than 50% share of global incoming orders High entry barriers with limited competitive set Low in-house production depth with flexible cost structure -4-

5 Transparent group structure with 2 global divisions: 1. Paint and Assembly Systems (70% of sales) Paint and Final Assembly Systems Turnkey paint shops and final assembly plants; service and modernization Application Technology High-tech systems and software for automated paint and sealing application (i.e. robots, atomizers) Environmental and Energy Systems Technology for exhaust-air purification and for disposing of liquid residues as well as energy management Aircraft and Technology Systems Assembly and painting systems for the aviation industry. Consulting for automobile and aircraft manufacturing and general industry -5-

6 Transparent group structure with 2 global divisions: 2. Measuring and Process Systems (30% of sales) Balancing and Assembly Products Balancing and diagnostic systems (automotive, electrical, turbo, machinery, aerospace). Assembly products, end of line testing and filling systems for automobile production Cleaning and Filtration Systems Cleaning, filtration and automation systems for engine and transmission production as well as for metal-cutting and other metalworking processes Schenck Technologie- und Industriepark GmbH Property service provider -6-

7 China boom continues Incoming orders H (H1 2009) Incoming orders H (H1 2009) Sales revenues H (H1 2009) Mature markets Emerging markets* 38.9% (70.3%) 61.1% (29.7%) 35.3% (5.6%) 8.9% (8.5%) Regional business split will remain largely unchanged in H2 18.6% (22.6%) 15.5% (34.4%) 21.7% (28.9%) 19.5% (9.5%) 11.2% (15.0%) 24,2% (28.6%) 19.5% (15.3%) 25.6% (31.6%) Germany Europe without Germany, incl. Eastern Europe North and South America Asia (without China), Africa, Australia China *Asia (without Japan), Mexico, Brazil, Easterm Europe -7-

8 Asia/China: Dürr in leading position Sales share in Asia and China* in % Average German industrials 2009e Krones 2009e SGL Carbon 2009e Heidelberger Druck 2009e Klöckner Werke 2009e Dürr Dürr 2010e Dürr 2011e Asia China * Source: HSBC Trinkaus & Burkhardt AG, German Industrials 09/23/2009. Sample contains 27 companies -8-

9 Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Financial overview and outlook -9-

10 Strategy: Review Dürr 2010 Customer benefit - Increased R&D efforts across the board - Launch of important new products (e.g. EcoDryScrubber) Growth initiatives - We leveraged our strengths in the emerging markets - We increased our market shares in all Business Units - Aircraft Process optimization - Process improvement: big steps with OneSAP, focus now on reaping the benefits - Globalizing production and engineering: good progress - Downsizing Paint and Final Assembly Systems Value creation - Efficient balance sheet: successful refinancing, confidence among banks and capital markets - Focus on stability with high cash flow -10-

11 Strategy: Our plans going forward Portfolio divestments Restructuring Process optimization Sales push Customer benefit Growth initiatives Process optimization Value creation Crisis management (capacity & costs) Growth Focus China Product innovation New business areas Optimization Localization/Global processes Capacity shifts 2005/ Focus Dürr

12 Strategy: Product innovation (1) Rollout EcoDryScrubber: already 30 orders received! CPU-reduction: around 10 per car body, energy savings up to 30% Dry overspray separation system for wet paints Automated separation of overspray without water and chemicals Effective re-circulation of process air Clear competitive advantage Among the customers are Daimler (Hungary), FAW/VW (China), Nissan (China), VW (USA), Rehau (Germany), Rehau (South Africa) -12-

13 Strategy: Product innovation (2) EcoBell 3: The new universal atomizer generation Highest process flexibility: one atomizer for internal, external and plastic part painting Best in class performance: color-change < 10 ml, colour change time < 10s Lowest complexity, compact dimensions No voltage block needed any longer (cost reduction) Competitive advantage of min. 2 years! -13-

14 Strategy: Growth in new business areas New business areas Expansion in environmental and energy efficient technologies Expansion in assembly technology/automation Localization of existing Dürr-products in China and India for Emerging Markets Development of new product solutions for recovering surplus energy in industrial processes Expansion possible through acquisition of complementary technologies/businesses in Environmental and Energy Systems portfolio Expansion in automation technology based on existing technology Penetrating new fields of business in automation - Battery manufacturing - Battery assembly - Other Expansion possible through acquisition of complementary technologies/businesses -14-

15 Strategy: Several acquisitions 2009/2010 to expand in new business areas M&A rationale Datatechnic UCM - Enhancing technological position, broadening business activities, leveraging Dürr network (e.g. customers, regions) - Balancing technology - Removing unbalanced mass in turbochargers - Complete new product range for balancing and removing unbalanced mass - Growing turbocharger market - Cleaning technology - Specialist for precision cleaning systems, e.g. watches, precision optics, medical engineering Kleinmichel & Rickert - Application technology - Specialists for gluing technology in the final assembly process (e.g. windows, roofs, cockpits) and in the body shop - Growing markets: replacement of welding, new applications (gluing of different materials i.e. plastics, steel, aluminium, carbon), weight reductions/body stiffness -15-

16 Strategy: Ongoing optimization process Localization/Global Processes Rigorous localization of Dürr-Products in the Emerging Markets - Supplement product portfolio with lowcost/low-end solutions - Reduction of specifications - Local added value Further globalization of Dürr processes: - Strengthening of engineering center in India - Expansion of sourcing offices in China, India, Mexico, Brazil - Expansion of manufacturing in China, Mexico for international supply - Global processes with full utilization of SAP/CAX Capacity Adjustments At the same time consolidation in Western Europe - Capacity reduction in line with local market demand - Streamlining of processes and overheads - Synergies -16-

17 Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Financial overview and outlook -17-

18 Order backlog corresponds to 1 years sales in m H H H1 2010/2009 in % Incoming orders 1, , Sales revenues 1, , Orders on hand (end of period) , , Gross profit on sales EBIT Net income / loss Strong Q2-figures: Sales (+10%), EBIT 7.1 m ( 1.4 m) -18-

19 Continuous improvement of order intake since Q in m m on average Q Q Q Q Q Q Q Measuring and Process Systems Paint and Assembly Systems -19-

20 Order backlog of 1.3 bn secures utilization for full 12 months m Delivery of order backlog % 85% % 83% 1,082 17% 83% % 78% 1,002 14% 86% 1,147 16% 84% 1,261 16% 84% 1,261 65% 35% in 2011 or later in / / / / / / /2010 Measuring and Process Systems Paint and Assembly Systems -20-

21 Cash flow: Moderate NWC increase in Q2 due to higher business volume Cash flow/free cash flow H H in m EBT Depreciation and amortization of non-current assets Interest result Income taxes paid Provisions Net working capital Other Cash flow from operating activities Interest paid (net) Capital expenditure Free cash flow

22 Solid financial structure 12/31/ /31/ /31/ /30/2010 in m Equity Equity ratio 23.9% 31.4% 31.1% 30.4% Net financial status Net working capital DWC (Days working capital) ROCE 15.0% 16.8% 1.9% 0.6% 1) Equity ratio above our target ratio of 30% Unused cash credit lines and cash on hand in total of m 1) annualized -22-

23 Markets: 2010 better than expected Car sales January - July 2010 Change year-on-year in % China 44 India 32 Japan 21 USA 15 Russia 9 Brazil 7 Western Europe -1 New EU countries -14 Germany Source: VDA (German car makers association) -23-

24 China: Normalization after boom Light vehicle sales volume Q4/2008-Q2/ % 81% 88% 77% Units in m -4% 8% 26% YOY change Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Current Year Prior Year Source: China Automotive Information Net -24-

25 but continuing demand due to low car ownership penetration % US$ GDP/capita China is approaching the per capita income threshold where car ownership starts to spike 30% 25% 20% 15% 10% Car ownership penetration % 0 0% Mexico Argentina Brazil Malaysia South Africa Thailand China Indonesia Philippines India 2008 GDP/capita 2008 car ownership penetration Source: Deutsche Bank -25-

26 Markets and outlook: Strong recovery m Sales revenue > +7% m 95.4 Cashflow 1,603 1, e e m 1, % Incoming orders m 72,7 EBIT 1,185 5, e e -26-

27 Refinancing activities autumn ) Syndicated loan => good progress to finalize negotiations in the next few months including reduction of the credit lines 2.) Bond => new bond issue in autumn (volume around 100 m) Subsequent redemption of old bond Total package will secure long-term group financing Possible reduction of interest expense by 4-5 m from 2011 onwards -27-

28 Outlook: Improving market conditions, positioning for growth 1. Pick-up in tendering, order pipeline is filling, a lot of new projects are coming to the market (e.g. China, Brazil) 2. Positioning for growth: focus on China, product innovation and new business segments 3. Further streamlining of costs. Global processes/localization : increase in sales revenue (> +7%), and significant increase in EBIT, incoming orders +15% 2011: strong profit growth due to margin expansion in our projects 5. Solid financial structure with net financial debt at around zero. Equity ratio at 30% 6. Refinancing activities for bond and syndicated loan already launched => fully funded until 2015 with improved interest result -28-

29 Financial calendar 08/25/2010 Commerzbank Sector Conference Week, Frankfurt, Germany 09/21/2010 Unicredit German Investment Conference, Munich, Germany 11/03/2010 Interim report for the first nine months of /01/2010 Berenberg Conference, London, UK 12/03/2010 LBBW Conference, Zurich, Switzerland Contact: Dürr Aktiengesellschaft Günter Dielmann Corporate Communications & Investor Relations Carl-Benz-Str Bietigheim-Bissingen Germany Phone:

30 -30-

31 Shareholder structure August 19,

32 Markets and outlook Light vehicle production in million units CAGR of more than 6% in the next 4 years Region CAGR North America 12.6 (-16.6%) 8.5 (-32.5%) 11.5 (35.3%) 12.9 (12.2%) 13.7 (6.2%) 14.6 (6.6%) 15.2 (4.1%) 3.2% Mercosur 3.4 (6.2%) 3.3 (-2.9%) 3.6 (9.1%) 3.9 (8.3%) 4.2 (7.7%) 4.6 (9.5%) 4.9 (6.5%) 6.3% Western Europe 15.2 (-6.2%) 12.3 (-19.1%) 12.8 (4.1%) 13.2 (3.1%) 13.9 (5.3%) 14.3 (2.9%) 14.7 (2.8%) -0.1% Eastern Europe 6.2 (6.9%) 4.4 (-29.0%) 5.1 (15.9%) 5.6 (9.8%) 6.0 (7.1%) 6.5 (8.3%) 7.1 (9.2%) 2.3% Asia thereof China 26.3 (1.2%) 7.5 (5.6%) 26.4 (0.4%) 11.0 (46.7%) 32.8 (24.2%) 14.0 (27.3%) 35.6 (8.5%) 15.3 (9.3%) 38.4 (7.9%) 16.6 (8.5%) 40.7 (6.0%) 17.9 (7.8%) 42.3 (3.9%) 18.9 (5.6%) 8.2% 16.7% Others 2.5 (0.0%) 2.3 (-8.0%) 2.5 (8.7%) 2.7 (8.0%) 2.7 (0.0%) 2.9 (7.4%) 3.0 (3.4%) 3.1% Total 66.2 (-3.8%) 57.2 (-13.6%) 68.3 (19.4%) 73.9 (8.2%) 78.9 (6.8%) 83.6 (6.0%) 87.2 (4.3%) 4.7% Forecast 1/ % Source: own estimates -32-

33 Competitive situation/market shares* Business units Paint and Final Assembly Systems Dürr 40%, Eisenmann 20%, Taikisha 13%, Local Competitors: Scivic, Giffin, Geico, Trinity (Toyota) Application Technology Dürr 50%, ABB 15-20%, Fanuc 15-20%, Yaskawa <10% Environmental and Energy Systems Dürr 30%, John Zink/KEU 20%, CTP 10% Aircraft and Technology Systems Airbus Varel, Claas/Brötje, Hyde, MTorres, Comau Pico, Thyssen Krupp Balancing and Assembly Products Balancing: Dürr 40%, Kokusai 15%, CEMB 10% Filling: Dürr 25%, Cinetic 22%, Sihi 15% Testing: Dürr 30%, BEP 20%, Fori 10%,Siemens 5% Cleaning and Filtration Systems Dürr 30%, Harry Major 15%, Technofirma 12% *Own essentials, average of last 3 years -33-