Worldwide. On Site. Drägerwerk AG & Co. KGaA Capital Markets Presentation. January, 2018

Transcription

1 Worldwide. On Site. Drägerwerk AG & Co. KGaA Capital Markets Presentation January, 2018

2 Disclaimer This presentation does not constitute an offer of securities for sale or a solicitation of an offer to purchase any securities. No money, securities or other consideration is being solicited by this presentation. This presentation contains forward-looking statements regarding the future development of the Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to it to date, and have been made to the best of its knowledge and belief. No guarantee or liability for the occurrence of the future developments and results specified can be assumed in respect of such forward-looking statements. Rather, the future developments and results are dependent on a number of factors; they entail risks and uncertainties beyond our control and are based on assumptions which could prove to be incorrect. Notwithstanding any legal requirements to adjust forecasts, we assume no obligation to update the forward-looking statements contained in this presentation. Interim financial reports as well as preliminaries are not audited. 2

3 Dräger The Company Financials Outlook 3

4 Dräger products protect, lives support and save. 4

5 Net sales development Strong growth independent of the global economy Dräger net sales in EUR million Global gross domestic product Net sales development 2,500 Debt crisis 2,000 1,500 1,000 Gulf War Mexican peso crisis Russian financial crisis Stockmarket crash Stockmarket crash Iraq War Financial crisis Source: International Monetary Fund, World Economic Outlook Database 5

6 Dräger worldwide Net sales, sites and employees Safety ~35 % 25% 20% Net Sales: EUR ~2.6 billion in % Medical ~65 % 10% 11% 14% Dräger-Sites Production sites in Europe, America, Africa and Asia Sales and Service organizations worldwide Sales & Service R&D 25% 16% 13,263 employees in 2017 Production, Quality, Logistics, Purchasing Administration 70% Europe Africa, Asia, Australia Americas 55% 6

7 Markets Our customers Hospital Fire services Oil and gas industry Mining Chemical industry Other markets 7

8 Intensive Care Operating Room Neonatal Care Hospital wide Solutions Anaesthesiology Ventilation Thermoregulation Anaesthesia workstations and vaporizers #1 in Europe and #2 in the US market Emergency & Transport-, Neonatal- and Intensive Care ventilators Respiratory monitoring #1 in Europe Patient Monitoring & Clinical IT Infinity Acute Care System Clincal software solutions Telemetry and IT-solutions Workplace Infrastructure Medical supply units Medical Gas supply systems Medical lights and video solutions Incubators and Warming Therapy #2 worldwide and #1 in Europe Note: Market position based on Dräger s market knowledge and its own assessment of market position; positions ranked according to net sales. Hospital Consumables & Service Consumables and accessories Classical-, Multivendor product service, Professional Service Training 8

9 Fire Service Oil & Gas Chemical Mining Other Markets Breathing Systems Gas Detection Systems Self-contained Breathing Appartus for fire fighters #2 worldwide and #1 in Europe Impairment Check Equipment Alcohol- and drug screening devices Interlock devices #1 worldwide and #1 in Europe Fixed and mobile gas detection systems #1 worldwide and #1 in Europe Personal Protection Equipment Protection equipment for hazardous working environments Body and Head protection, rescue and escape devices, Masks and Filters, etc. Note: Market positions based on Dräger s market knowledge and its own assessment of market position; positions ranked according to net sales. Engineered Solutions Service Customer specific solutions mobile and stationary firefighting training systems Rescue chambers Spareparts and consumables Product Service Rental, On-site shops and Shutdown Service Marine-Offshore Service 9

10 Medical and safety technology providing long-term growth prospects in developed and emerging markets Hospital Oil&Gas Chemical Mining FireService Attractive growth prospects in sizeable markets Average expected annual market growth for the global medical equipment market significantly exceeding growth in many other sectors Strong growth prospects in both developed and emerging markets Very diversified markets with numerous product and service offerings Attractive growth prospects for target sectors (e.g. industry) and growing safety investments in Europe and the US Rapidly aging population and consequently increasing healthcare expenditure Increasing demand for medical equipment to improve clinical workflows and efficiency Increasingly stricter safety regulations Rising environmental awareness Improved outlook for target markets as well as in emerging markets Strong growth of GDP and population resulting in a demand for improved medical services Political benefits from investments in health care sector Increasingly higher safety standards Increasing industrial hygiene awareness Strong growth of key customer sectors 10

11 Strategy for profitable growth 1 Management of innovation rate through continuous improvements in quality and R&D processes 2 Expansion of market positions in attractive markets. Special focus on profitable growth in developing countries 3 Expansion of service and consumables business 4 FIT FOR GROWTH efficiency program 11

12 1 Technology and innovation leadership to drive profitable growth Strong R&D focus Innovation to enhance future growth (examples) Approximately 1,300 employees in R&D around the globe. EUR 219 million spent for R&D activities in 2016 (8.7 % of net sales). Certified test-center at Lübeck headquarter supports innovation- and approval process. Qualitymanagement organization with >100 employees. Very close collaboration with customers to develop new and improve existing products. Technological competency and high quality standards result in leading market positions and high barriers to entry. Babyleo Incuwarmer: combination of a classical incubator and warming bed functionalities. Regard 7000 core controlling unit for fixed gas detection systems. Mview Integration of handheld devices in the patient monitoring landscape of hospitals. 12

13 2 Exploit growth potentials in developing countries 2 Investments in profitable growth in developing countries Focus on the specific needs of customer in developing countries Identify growth potential in strong growing markets like China, Brazil and India Capitalize on the significant investments into the Sales & Service infrastructure and specific market knowledge, especially in our Regions Asia / Pacific, Central- and South-America Enhance engagement with partners in developing countries to expand local presence with R&D, manufacturing, sales and after sales business Net sales 2016 Newly industrialized countries 23 % Focused product range Developed Markets 77 % Savina Color Vista 120 Fabius Plus XL 13

14 3 Service- and consumables business a clear focus of our Sales activities 3 Further expansion of service and consumables business Capitalize on large installed base to expand after sales business Focus on combined sale of equipment and after sales contracts Expansion of disposable consumables business Dräger Services Dräger Consumables Globally over 3,000 service technicians Fast and reliable service (repairs and spare parts) is a critical factor for customers Dräger Service technicians important for customer loyalty Efficient service solutions via remote service Broad offerings of product service New services in the areas of Rental, Multi-Vendor and Marine-offshore Functionalities with added value, e.g. optimizing workflow with RFID-based communication between consumables part and therapy machine Dräger quality to improve hygienic standards Dräger value add especially in development of consumables. Production usually via suppliers Partly proprietary consumable products, e.g. Dräger-Tubes 14

15 4 FIT FOR GROWTH Overview Initiatives SHAPE Improve SG&A expense ratio Optimize global Sales, Marketing & Administration set-up New governance model in Q1/16 implemented. 250 cost containment measures: ~70% of the measures implemented in Remaining ~30% will be implemented in cost reduction net of FX and restructuring charges: -6.1% in Reduction of SGA ratio* to ~30% in Fit! Bring customer value faster to the market Optimize innovation set-up New Innovation organization implemented. Numerous changes in the innovation process (e.g. strengthen system and platform based development, AGILE development, Dräger Garage, etc. ). Improve Time to market by 50% until Global footprint Improve workflow and delivery times and reduce production cost Optimize production set-up New Zukunftsfabrik in Lübeck (go-live in Q2/2016). Transfer of production with high labor content to Czech Republic (completed). Closure of Pittsburgh site (completed). * at comparable FX rates Jan and before possible on-off expenses for restructuring or similar 15

16 16 Financials

17 Business development Dräger Group prelim million million million million million Net Sales 2, , , ,523.8 ~2,57x % growth (FX adjusted) 3.1% 4.0% 2.9% -1.5% ~3.2% Gross margin 48.3% 46.7% 44.9% 45.0% ~stable Functional Expenses % of Net Sales % % -1, % % ~on py level EBIT EBIT Margin % % % % ~ % DVA Note: restructuring charges included in FY EBIT: EUR 35 million in 2015, EUR 10 million in

18 Key figures Dräger Group M M 2017 million million million million million million Cashflow (from operating activities) Investments Cash and cash equivalents Net financial debt Net financial debt 1 /EBITDA Capital employed 1 1, , , , , ,213.7 ROCE (EBIT 2 /Capital employed 1 ) 19.1% 16.1% 5.3% 11.0% 7.6% 12.6% Net Working Capital Headcount 1 13,334 13,737 13,936 13,263 13,292 1 Values as of reporting date 2 EBITDA and accordingly EBIT of the last twelve months 18

19 19 Outlook

20 Outlook EXPECTATIONS FOR FISCAL YEAR 2018 Net sales preliminary 2018e -1.5% ~3.2% % (net of currency effects) (net of currency effects) (net of currency effects) EBIT margin 5.4% ~ % % 1 1 Based on the assumption of no material change of relevant exchange rates 20

21 21 Guiding philosophy What we stand for

22 22

23 Dräger management Stefan Dräger Gert-Hartwig Lescow Rainer Klug Dr. Reiner Piske Anton Schrofner Chairman of the Executive Board (Chief Executive Officer) Vice Chairman of the Executive Board Executive Board member for Finance and IT Executive Board member for Purchasing, Production and Logistics Executive Board member for Human Resources Executive Board member for Innovation and Quality At Dräger since 1992 At Dräger since 2008 At Dräger since 2015 At Dräger since 2015 At Dräger since 2010 Fifth generation of the Dräger family to lead the company Responsible for the Americas region Responsible for the Europe region Responsible for the Africa, Asia and Australia regions 23

24 Shareholder structure 10,160,000 common shares (28.8 % free float) 7,600,000 preferred shares (100.0 % free float) Shareholding Common shares Shareholding Dr. Heinrich Dräger GmbH 28.8% 4.0% 18.1% 58.7% 67.2 % 23.2% Dr. Heinrich Dräger GmbH Free float Members of the Dräger family Stefan Dräger GmbH Dräger Foundation Successors of Dr. Heinrich Dräger 24

25 Guidance 2017 EXPECTATIONS FOR FISCAL YEAR 2017 Net sales preliminary -1.5% ~3.2% (net of currency effects) (net of currency effects) EBIT margin 5.4% ~ % Dräger Value Added EUR 49.8 million EUR million Other forecast figures: Gross margin 45.0% % Research and development costs EUR 219 million EUR million Interest result EUR million EUR -13 to -17 million Days wokring capital (DWC) days Slight improvement Investment volume EUR 99.9 million EUR million Net financial debt EUR 34.7 million Improvement 25

26 Business Development Segments SEGMENT EUROPE Order Entry 1 million 1, , , , ,382.5 Net Sales 1 million 1, , , , ,384.3 EBIT million EBIT margin % SEGMENT AMERICA Order Entry 1 million Net Sales 1 million EBIT million EBIT margin % SEGMENT AFRICA, ASIA, AUSTRALIA Order Entry 1 million Net Sales 1 million EBIT million EBIT margin % years were adjusted pro-forma due to the change in segment reporting. For further analysis, this data (including quarterly figures) can be downloaded as an Excel file from the Dräger website 26

27 Business development Segments Europe Americas Africa, Asia, Australia Dräger Group Q Q Q Q Q Q Q Q million million million million million million million million Order entry Net Sales EBITDA EBIT EBIT-margin Capital Employed , ,213.7 ROCE 1, DVA Values at due date 2 EBIT of the last twelve months 27

28 Business development Segments Europe Americas Africa, Asia, Australia Dräger Group 9M M M M M M M M 2017 million million million million million million million million Order entry 1, , , ,928.3 Net Sales , ,737.0 EBITDA EBIT EBIT-margin Capital Employed , ,213.7 ROCE 1, DVA Values at due date 2 EBIT of the last twelve months 28

29 Business Development medical and safety products Medical Order Entry million 1, , , , ,662.6 Net Sales million 1, , , , ,647.4 EBIT million EBIT margin % Safety Order Entry million Net Sales million EBIT million EBIT margin % For further analysis, this data (including quarterly figures) can be downloaded as an Excel file from the Dräger website 29

30 Business development Medical products Q Q Change Change 9M M 2017 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry , , Europe America Africa, Asia, Australia Net Sales , , Europe America Africa, Asia, Australia EBIT EBIT-margin

31 Business development Safety products Q Q Change Change 9M M 2017 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry Europe America Africa, Asia, Australia Net Sales Europe America Africa, Asia, Australia EBIT > EBIT-margin

32 Functional expenses M M 2017 Change net of FX and restructuring million million million million million million % R&D % of Net Sales -8.5% -8.7% -8.9% -8.7% -9.6% -9.9% SG&A % of Net Sales -31.1% -30.8% -33.0% -30.2% -32.5% -32.0% Other operating income Functional Expenses total , % of Net Sales -39.7% -39.7% -42.1% -39.6% -42.3% -42.0% Headcount 1 13,334 13,737 13,936 13,263 13,292 13,642 1 Values as of reporting date 32

33 Cash-flow statement M M 2017 million million million million million million Group net profit Change in inventories Change in receivables Change in payables Depreciation and amortization Other operating cash flow items Operating cash flow Investing cash flow Free cash flow Financing cash flow Change in cash Cash and cash equivalents Change in cash and cash equivalents, i.e. without any effect of exchange rates 2 Values as of reporting date 33

34 Consolidated balance sheet 31 Dec Dec 2016 Change million million % Intangible Assets Property, plant and equipment Other noncurrent assets Noncurrent assets Inventories Trade receivables Other current assets Cash and cash equivalents Current assets 1, , Total assets 2, ,

35 Consolidated balance sheet Change million million % Equity , Liabilities from participation certificates Provisions for pensions and similar oblig Noncurrent interest bearing loans Other noncurrent liabilities Noncurrent liabilities Current Provisions Current loans and liabilities to banks Trade payables Other current liabilities Current liabilities Total equity and liabilities 2, ,

36 Innovation rate Share on new products and upgrades medical 1 45% 40% Net sales Upgrades New products 35% 30% 25% 20% 15% 33% 23% 34% 28% 32% 22% 27% 20% 20% 24% 10% 18% 22% 5% 0% 10% % % % % % 2017 H1 1 Launched in the last 3 years; products are regarded as new, if they enable Dräger to either enter a new market segment or if products are regarded as completely new according to Dräger s customers and Dräger s sales force. Upgrades are those products, which serve existing Dräger markets, but their functionality is perceived as significantly enhanced by Dräger s customers and Dräger s sales force. 36

37 Earnings per share Net profit in ' , , ,666 33,288 81,736 Earnings attrib. to non-controlling interests in '000 3, Szenario: 100% distribution: pay-out ratio 100% 100% 100% 100% 100% Earnings attrib. to participation certificates* in '000 35,523 31,917 27,686 8,530 20,537 Earnings attrib. to shareholders in '000 96,838 87,415 77,085 25,044 60,855 Earnings per common share Earnings per preferred share Szenario: actual/proposed distribution pay-out ratio 15.1% 15.1% 30.1% 10.9% 4.5% Earnings attrib. to participation certificates* in '000 5,325 4,780 8, Earnings attrib. to shareholders in ' , ,553 96,598 32,665 80,496 Earnings per common share** Earnings per preferred share** * excluding minimum dividend, after taxes ** the EPS is not in accordance with IAS 33 37

38 Financial calendar 2018 March 8, Annual accounts press conference - Analysts meeting April 26, Report for the first three months 2018 Conference call May 4, Annual shareholders' meeting, Lübeck, Germany July 26, Report for the first six months 2018 Conference call October 30, Report for the first nine months 2018 Conference call 38

39 Contact Melanie Kamann Corporate Communications Thomas Fischler Investor Relations Drägerwerk AG & Co. KGaA Drägerwerk AG & Co. KGaA Moislinger Allee Moislinger Allee Lübeck, Germany Lübeck, Germany Tel Tel Fax Fax Mobile Mobile