Drägerwerk AG & Co. KGaA Analysts Meeting. Frankfurt, March 14, 2012

Transcription

1 Drägerwerk AG & Co. KGaA Analysts Meeting Frankfurt, March 4, 202

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 40

3 Content. Beneficial reinforcement 2. Shaping the future 2. One Dräger 2.2 Innovation 2.3 Operations 3. Financials 4. Outlook 5. Appendix 3 40

4 4 40 Beneficial reinforcement

5 Beneficial reinforcement Success through conscious focus on strong basics Guiding philosophy Technology for Life is the common element that gives our daily activities a deeper meaning People The people who work with us understand who we are and what motivates us Diversity Diversity in a wide variety of aspects protects us from the effects of crises and economic fluctuations Ownership structure Our ownership structure provides for thinking in the long term and sustainable growth Culture Our culture is characterized by solution-driven thinking, motivation and a human face Strengths Customer intimacy, our employees, innovation and quality have driven our success for more than 20 years 5 40

6 6 40 Shaping the future

7 7 40 Shaping the future One Dräger

8 8 40 Shaping the future One Dräger Sales and Service regions

9 Shaping the future One Dräger Sales and Service worldwide 20 initiative Effects in 202 and following years Extending the One Dräger initiative in Sales and Service: Dividing the world in seven sales regions, with common management of all Dräger business fields at the regional level Leveraging synergies by appointing a responsible country manager for every country with Dräger subsidiaries Implementing the functional organization across all subsidiaries worldwide Extensively using existing Dräger infrastructure for faster growth Goal: Reducing relative selling expenses by at least one percentage point by the end of

10 0 40 Shaping the future Innovation New products are the best margin improvers

11 Shaping the future Reduction of time to market for new products 20 initiative Effects in 202 and following years Do it right the first time Integrating strategic suppliers in the innovation process Enhancing project management and speeding up the innovation process Improved reliability engineering during the innovation process and statistical verification of individual development steps Simulating expansion and basing calculations on the component level Gradually building strategic suppliers Integrating supplier s skills Enhancing Dräger s core competencies Increased DVA due to: Better integration of R&D, Purchasing, Production and Logistics Shorter approval times in non-ce countries 40

12 Shaping the future Enhancement of quality leadership in products and solutions 20 initiative Effects in 202 and following years Reducing guarantee costs and quality costs 20: Savings in the single-digit million euro range Making greater use of quality methods such as Six Sigma or FMEA Annual savings in the single-digit million euro range Improving the quality of delivery to the customer Goal: zero defects in delivery Positive effect on the brand image Measurable increase in customer satisfaction Reduction in opportunity costs 2 40

13 Shaping the future Cost reduction in all segments through excellence in Purchasing 20 initiative Effects in 202 and following years Expanding NPI and IT purchasing activities (NPI non productive items) 20: Improvement in earnings and increase in efficiency exceed the single-digit million euro range Further consolidation and cost reduction at the global level Improvement in earnings in the middle singledigit million euro range 3 40

14 4 40 Shaping the future Operations

15 Shaping the future Optimizing the structure and processes in Operations 20 initiative Effects in 202 and following years Build and commission of the factory for Infrastructure Projects Significant process and quality enhancements Productivity has been raised by 8% Lead model for continuous optimization of value creation Project ONE: Long-term planning of the design and use of all production and logistics buildings at the Lübeck site has been initiated Optimized materials flow at the Lübeck site (inside and outside the factory) Optimized production layout Prerequisite to realize the planned rise in volumes while reducing the total floor space 5 40

16 Shaping the future Expanding manufacturing plants for customer benefit 20 initiative Effects in 202 and following years Inauguration of the new production building in Beijing Continuous optimization of value creation based on the lead model Supports market growth in the Asia/Pacific region Planning the expansion of the Shanghai site for Development and Production lead factory Meeting the continuously growing demand Proximity to the market, in particular for customers in the Asia/Pacific region Analyzing local value creation in the sales companies Recording and optimization of local value creation activities Ideal and efficient fulfillment of country-specific customer needs 6 40

17 Shaping the future Harmonizing the value chain 20 initiative Effects in 202 and following years Introducing the Supply Chain Operations Reference model (SCOR) Stronger customer focus along the entire supply chain (push to pull) Consistent optimization of the entire process chain Harmonizing value creation processes and master data Group-wide uniform process landscape (at the international level and across divisions) Flexibility across sites Transparency throughout the entire process chain Basis for a standard ERP system 7 40

18 Shaping the future Optimizing the IT infrastructure and ERP systems 20 initiative Effects in 202 and following years Strategic Hosting substantial consolidation of the data center activities with an external service provider Increased operating reliability Improved availability Global transparency regarding system interfaces as the basis for further optimization Analyzing processes and architecture of the existing ERP environment, defining of objectives Starting migration to an international, uniform SAP template Enhancing vertical integration between headquarters in Germany and international subsidiaries 8 40

19 9 40 Financials

20 Business development Order intake Orders on hand Net sales ,255.8 Gross margin 46.4 % 47.6 % 48.0 % 49. % EBITDA EBIT EBIT margin Income taxes Tax rate 25.5 % 26.9 % 3.8 % 30.8 % after Earnings DVA income taxes Q4 200 million %.8 Q4 20 Change million % 6.8 % million million % , , Currency adjusted: Q4 20: order intake +6.7 %, net sales +0.4 % 20: order intake +7.6 %, orders on hand +8.5 %, net sales +4.4 % 2, Change % 9.5 %

21 Business development Medical division Q4 200 Q4 20 Change Change million million % million million % Order intake Orders on hand Net sales ,44.9,58.8,472.0, EBITDA EBIT EBIT margin 3.2 % 7.3 % 2.7 % 2.9 % DVA Currency adjusted: Q4 20: order intake +9.7 %, net sales +0.4 % 20: order intake +6.3 %, orders on hand +2.7 %, net sales +.8 % 2 40

22 Business development Safety division Q4 200 Q4 20 Change Change million million % million million % Order intake Orders on hand Net sales EBITDA EBIT EBIT margin 6.9 % 4.2 % 8.3 % 9.5 % DVA Currency adjusted: Q4 20: order intake +0.9 %, net sales +9.6 % 20: order intake +0.3 %, orders on hand +0.2 %, net sales +9.7 % 22 40

23 Key figures Change million million % Cash flow from operating activities Investments Cash and cash equivalents Net financial debt 90.3 Net financial debt /EBITDA Capital employed ROCE % 24.4 % Net working capital Values at due date 2 EBITDA and accordingly EBIT of the last twelve months 23 40

24 Functional expenses Q4 200 Q4 20 Change Change million million % million million % Research and development costs in % of net sales 6.8 % 6.5 % 6.8 % 7. % Marketing and selling expenses in % of net sales 25.2 % 22.9 % 26.2 % 25.5 % General administrative expenses in % of net sales 5. % 7.0 % 5.4 % 6.6 % 24 40

25 Consolidated balance sheet Assets 3 Dec Dec 20 Change million million % Intangible assets Property, plant and equipment Other non-current assets 50, Non-current assets Inventories Trade receivables Other current assets Cash and cash equivalents Current assets,295.9, Total assets, ,

26 Maturity structure note loans as of December 3, 20 Maturity Total million million million million million million million million Note loans The free cash flow of the Draeger Group was 94.2 million as of December 3, 20 and was partially used to amortise note loans. Within the financial planning it is stipulated for the forthcoming years that note loans will be paid back out of the yearly free cash flow

27 Consolidated balance sheet Equity and liabilities 3 Dec Dec 20 Change million million % Equity Liabilities from participation certificates Provisions for pensions and similar obligations Non-current interest-bearing loans Other non-current liabilities Non-current liabilities Current provisions Current loans and liabilities to banks Trade payables Other current liabilities Current liabilities Total equity and liabilities, ,

28 Capital structure optimization transaction In order to optimize our capital structure we are currently awaiting offers for certain financial instruments issued by Dräger in the time of 983 to 200. This solicitation is not made to any U.S. Person (as defined in Regulation S under the United States Securities Act of 933, as amended) or person located or resident in the U.S.A. The solicitation will be operated pursuant to the terms and conditions set out in the Tender Offer Memorandum dated 5 February 202 and is subject to further restrictions and conditions as contained therein. Due to regulatory reasons we cannot give the audience more insight into the current transaction than contained in this presentation. We will publish the result of the solicitation following 22 March 202. Depending on the amount of financial instruments tendered, the transaction may have an single million EUR impact on the income statement

29 Capital structure optimization transaction Depending on the amount of financial instruments tendered, the following effects on several key figures of the Dräger Group are likely to occur: Tendered volume ( million) % 50 % 00 % Cash and cash equivalents Equity Non-current liabilities Equity ratio Net financial debt EBITDA Net financial debt/ebitda Based on the financial statements dated December 3,

30 Cash flow statement Operating activities Investiting activities Financing activities Change in cash* * Without effects of exchange rates on cash and cash equivalents

31 Dividend proposal 20 Net profit Earnings attributable to non-controlling interests Net profit after earnings attributable to non-controlling interests Dividend - Participation certificates - Common shares - Preferred shares 3 Dec 200 million Dec 20 million Net payout ratio Gross payout ratio 30. % Plus minimum dividend and tax effect of the participation certificates % 3.3 %. 4.3 % Without minimum dividend, after taxes 3 40

32 32 40 Outlook

33 Outlook and mid-term perspective Mid-term Order intake +8.5 % (currency adjusted +4. %) +6.9 % (currency adjusted +7.6 %) At least world economic growth Net sales +3.9 % (currency adjusted +9.5 %) +3.6 % (currency adjusted +4.4 %) At least world economic growth Growing faster than relevant markets EBIT margin 8.9 % 9.5 % EBIT margin between 8.0 % and 9.5 % 2 At least 0 % target margin IMF forecast (January 202) +3.3 % 2 Higher expenses for planned investments into research and development and the improvement of the worldwide IT infrastructure 33 40

34 34 40 Appendix

35 Appendix Executive Board Shareholder structure Financial calendar Contact 35 40

36 Executive Board Executive Board of Drägerwerk Verwaltungs AG Stefan Dräger CEO Dr. Herbert Fehrecke CTO Gert-Hartwig Lescow CFO Toni Schrofner COO 36 40

37 Shareholder structure 0,60,000 common shares (28.5 % free float) 6,350,000 preferred shares (00.0 % free float) Shareholding Common shares Shareholding Dr. Heinrich Dräger GmbH 28.5 % 4.3 % 8. % 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 37 40

38 Financial calendar February 202 Preliminaries 20 March 4, 202 Accounts press conference, Hamburg Analysts meeting, Frankfurt May 3, 202 Report for the first three months 202 Conference call, Lübeck May 4, 202 Annual shareholders meeting, Lübeck August 2, 202 Report for the first six months 202 Conference call, Lübeck November, 202 Report for the first nine months 202 Conference call, Lübeck 38 40

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

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