Drägerwerk AG & Co. KGaA Capital Markets Presentation. March, 2016

Transcription

1 Drägerwerk AG & Co. KGaA Capital Markets Presentation March, 2016

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 4 Dräger The Company

5 Dräger products protect, lives support and save. 5

6 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 Financial crisis 2,000 1,500 1,000 Gulf War Mexican peso crisis Russian financial crisis Stockmarket crash Stockmarket crash Iraq War Source: International Monetary Fund, World Economic Outlook Database 6

7 Dräger worldwide Net sales, sites and employees Dräger at a glance Safetydivision 35 % 17 % 20 % 9 % Net Sales: EUR 2.6 bn 12 % 4 % 54 % Medicaldivision 65 % Dräger-Sites Production sites in Europe, America, Africa und Asia Sales and Service organizations worldwide 14 % Europe 13,936 employees in 2015 Asia/Pacific 70 % America Middle East, Africa and Other 7

8 Markets Our customers Hospital Fire services Oil and gas industry Mining Chemical industry Other markets 8

9 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 Care and Intensive Care ventilators Respiratory monitoring #1 in Europe Incubators and Warming Therapy #2 worldwide and #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 Hospital Consumables & Service Consumables and accessories Classical-, Multivendor product service Training Note: Market position based on Dräger s market knowledge and its own assessment of market position; positions ranked according to net sales, for monitoring depending on market definition. 9

10 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 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. Impairment Check Equipment Engineered Solutions Service Alcohol- and drug screening devices Interlock devices #1 worldwide and #1 in Europe Customer specific solutions mobile and stationary firefighting training systems Rescue chambers Spareparts and consumables Classical-, Multivendor- Product Service Shutdown and Rental Service Note: Market positions based on Dräger s market knowledge and its own assessment of market position; positions ranked according to net sales. 10

11 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 11

12 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 12

13 1 Technology and innovation leadership to drive profitable growth Strong R&D focus Innovation to enhance future growth (examples) Approximately 1,400 employees in R&D around the globe EUR 212 million spent for R&D activities in 2014 (8.7 % of net sales) Tradition of innovation and quality leadership Very close collaboration with customers to develop new and improve existing products R&D focus on integration of products and services to provide solutions which support customer workflows R&D strives to leverage advantage of using same technology for different market segments and products (e.g. in gas sensors) Technological competency and high quality standards result in leading market positions and high barriers to entry Integration Monitoring and Anesthesia Device Anesthesia device Perseus A500 with IACS Monitoring integration for optimized workflow in the OR Sensor Portfolio Permanent expansion of the sensor portfolio: broad spectrum of detectible gases, low concentration, high reliability, long life time Clinical Apps Software based decision support to improve medical outcomes. E.g. Smart Pilot View, Sepsis-Guard 13

14 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 2015 Newly industrialized countries 24 % Focused product range Developed Markets 76 % Savina Color Vista 120 Fabius Plus XL 14

15 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 Continued expansion of service and spare parts offering Focus on combined sale of equipment and after sales contracts Dräger Service 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 Multi Vendor Service Administration and Service-Documentation of customers equipment pool 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 15

16 4 FIT FOR GROWTH Overview Initiatives SHAPE Improve SG & A expense ratio and working capital Optimize global Sales, Marketing & Administration set-up Legal entity consolidation within sales organization Streamlining, standardization and pooling of central, regional and local tasks and processes Effective expense management Reduction of SGA ratio* to ~30% in 2017 Fit! Bring customer value faster to the market and increase innovation share Global footprint Improve workflow and delivery times and reduce production cost Optimize innovation set-up E.g. Improve competency-, capability- and technology management, strengthen system and platform based development, increase global standardization, reengineer launch process to improve ramp-up speed, expand product portfolio targeted at Emerging Markets, Improve Time to market by 50% until 2019 and increase innovation share Optimize production set-up Investment into Zukunftsfabrik in Lübeck, Germany Transfer of production with high labor content to Chomutov, Czech Republic Consolidation of US-facilities (closure of Pittsburgh site) * at comparable FX rates Jan and before possible on-off expenses for restructuring or similar 16

17 17 Financials

18 Business development Dräger Group Change million million million million million million % Order Intake 2, , , , , , Net Sales 2, , , , , , % growth 13.9% 3.6% 5.2% % growth (currency adjusted) 9.5% 4.4% 2.5% Gross Profit 1, , , , , , Gross margin 48.0% 49.1% 49.2% 48.3% 46.7% 44.9% Functional Expenses , % of Net Sales -38.5% -39.7% -39.4% -39.7% -39.7% -42.1% EBITDA EBITDA Margin 11.3% 12.2% 12.5% 11.4% 10.5% 5.8% EBIT EBIT Margin 8.9% 9.5% 9.7% 8.5% 7.3% 2.6% 0.0% 3.1% 2.5% 4.0% 7.2% 2.9% Note: 2015 EBIT includes approx. EUR 35 million restructuring charges 18

19 Key figures Change million million million million million million % Cashflow (from operating activities) in % of EBIT 114% 76% 77% 34% 105% 60% Investments Cash and cash equivalents Net financial debt >100 Net financial debt 1 /EBITDA Capital employed , , , ROCE (EBIT 2 /Capital employed 1 ) 23.1% 24.3% 25.5% 19.1% 16.1% 5.3% Net Working Capital DVA >-100 Headcount 1 11,291 11,924 12,516 13,334 13,737 13, Values at due date 2 EBITDA and accordingly EBIT of the last twelve months 19

20 20 Outlook

21 Outlook Net Sales + 2.9% (net of currency effects) e 2017e 0.0% 3.0% (net of currency effects) Slight increase compared to prior year (net of currency effects) EBIT margin 2.6% 3.5% 5.5%* improvement* Gross profit margin 44.9% Below prior year Cash flow from operational activities 59.8% EBIT > 60% of EBIT Equity ratio 40.9% increase Assumptions for FY 2016 Guidance Cool down in Europe Risk of recession in additional countries No significant improvement in Emerging Markets and in markets that are connected to the commodity prices Slow start into 2016 due to low orders on hand at the beginning of year Negative FX effects of ~1 pp on net sales and ~0.5 pp on EBIT-margin Restructuring cost of EUR ~10 million * based on exchange rates at the start of the year

22 22 Guiding philosophy What we stand for

23 23

24 Dräger management Stefan Dräger Gert-Hartwig Lescow Rainer Klug Dr. Reiner Piske Anton Schrofner Chairman of the Executive Board (Chief Executive Officer) Executive Board member for Finance and IT (Chief Financial Officer) Executive Board member for Purchasing, Production and Logistics Chief Human Resources Officer Executive Board member for R&D, IP, Quality and Productmanagement At Dräger since 1992 At Dräger since 2008 At Dräger since 2015 At Dräger since 2015 At Dräger since 2010 America Europe Africa, Asia, Australia Fifth generation of the Dräger family to lead the company 24

25 Guidance 2016 Net sales Results achieved in 2015 Forecast % (net of currency effects) Between 0-3% (net of currency effects) EBIT margin 2.6% Between % 1 Dräger Value Added EUR million improvement Other forecast figures: Gross margin 44.9% below prior year Research and development costs EUR 231 million EUR million Interest result EUR million On prior year's level Effective tax rate 32.8% Between 30-33% Days working capital (DWC) days days Operating cash flow 59.8% of EBIT >60% of EBIT Investment volume EUR million EUR million Equity ratio 40.9% increase Net financial debt EUR million improvement 1 Based on exchange rates at the start of the year 25

26 Shareholder structure 10,160,000 common shares (28.5 % 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 26

27 Business development Dräger Group Q Q Change 12M M 2015 million million % million million Change % Order Intake , , Net Sales , , Gross Profit , , Gross margin 47.4% 45.8% 46.7% 44.9% R&D % of Net Sales 7.4% 6.8% -8.7% -8.9% SG&A % of Net Sales 26.9% 30.4% -30.8% -33.0% Functional Expenses , % of Net Sales 34.7% 37.7% -39.7% -42.1% EBITDA EBITDA Margin 15.6% 10.8% 10.5% 5.8% EBIT EBIT Margin 12.6% 8.1% 7.3% 2.6% Interest Result Tax rate 31.8% 32.8% Net Profit DVA Currency adjusted 12M: order intake +0.8%, net sales +2.9% Currency adjusted quarter: order intake -6.9%, net sales +4.4% 27

28 Business development Medical and Safety division Medical Division Q Q Change 12M M 2015 million million % million million Change % Order Intake , , Net Sales , , EBIT EBIT Margin 14.0% 10.0% 6.8% 2.7% DVA > Currency adjusted 12M: order intake +0.6%, net sales +3.1%. Currency adjusted quarter: order intake -7.7%, net sales +3.9% Safety Division Q Q Change 12M M 2015 million million % million million Change % Order Intake Net Sales EBIT EBIT Margin 10.0% 4.1% 8.3% 2.3% DVA > Currency adjusted 12M: order intake +1.3%, net sales +2.7%. Currency adjusted quarter: order intake -5.3%, net sales +5.3% 28

29 Functional Expenses Q Q Change 12M M 2015 Change FX adj. million million % million million % % R&D % of Net Sales 7.4% 6.8% -8.7% -8.9% SG&A % of Net Sales 26.9% 30.4% -30.8% -33.0% Functional Expenses total , % of Net Sales 34.7% 37.7% -39.7% -42.1% Change 29

30 Consolidated balance sheet Assets 31 Dec Dec 2015 Change million million % Intangible assets Property, plant and equipment Other non-current assets Non-current assets Inventories Trade receivables Other current assets Cash and cash equivalents Current assets 1, , Total assets 2, ,

31 Consolidated balance sheet Equity and liabilities 31 Dec Dec 2015 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 2, ,

32 Cash-flow statement 12M M 2015 million million Change % Group net profit Change in inventories >-100 Change in accounts receivables >-100 Change in accounts payables >-100 Depreciation and amortization Other operating cash flow items Operating cash flow Investing cash flow Free cash flow >-100 Financing cash flow Change in cash >-100 Cash and cash equivalents Change in cash and cash equivalents, i.e. without any effect of exchange rates 2 Values at due date 32

33 Innovation rate Share on new products and upgrades medical division 1 45% 40% Net sales Upgrades New products 35% 30% 29% 33% 34% 32% 27% 25% 20% 15% 15% 23% 28% 22% 20% 10% 5% 0% 14% 10% % % % 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. 33

34 Financial calendar March 9, Accounts press conference, Lübeck - Analysts meeting, Frankfurt April 26, Report for the first three months 2015 Conference call, Lübeck April 27, Annual shareholders' meeting, Lübeck July 28, Report for the first six months 2015 Conference call, Lübeck November 3, Report for the first nine months 2015 Conference call, Lübeck 34

35 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