Drägerwerk AG & Co. KGaA Capital Markets Presentation. March, 2015

Transcription

1 Drägerwerk AG & Co. KGaA Capital Markets Presentation March, 2015

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 Second oil crisis 500 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 36 % 17 % 19 % 8 % Net Sales: EUR 2.4 bn 12 % 3 % 56 % Medicaldivision 64 % Dräger-Sites Production sites in Europe, America, Africa und Asia Sales and Service organizations worldwide 15 % Europe 13,737 employees in 2014 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 Anesthesiology Respiratory Care Thermoregulation #1 in Europe #2 in the US market for anesthesia devices and vaporizers #1 in Europe #3 in the US market for ventilators #2 worldwide #1 in Europe for incubators and phototherapy Patient Monitoring & Clinical Data Management Workplace Infrastructure #3 worldwide for monitoring Infinity Acute Care System IT network solutions Telemetry and IT solutions Integrated workplace solutions Project business Gas management, architectural systems Medical lights Hospital Consumables & Service Training and service Consumables and accessories Multivendor services 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 Oil & Gas Chemical Mining Fire Service Fire Fighting #2 worldwide in integrated breathing protection for fire departments Plant Safety Gas Management Shutdown Management #1 position worldwide and in Europe #3 in the US market Project business Customer specific solutions Shutdown- and Safetymanagement Occupational Health & Safety Train & Prepare Breathing protection and air purifying respiratory protection Training Dräger Academy mobile and stationary firefighting training systems Service Products & Solutions Spareparts and consumables business Classical-, Multivendorand Remote-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 2014 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* by 1pp in 2017 and additional 1pp 2019 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) * compared to 2014 (SG&A ratio = 31%) at comparable FX rates and before possible on-off expenses for restructuring or similar 16

17 4 FIT FOR GROWTH Effects on EBIT-margin* Net sales growth of CAGR 3 to 6 percent (net of currency effects) ~7% +2% SHAPE SG&A ratio Global footprint stabilize GP-margin FIT! R&D ratio >10% Improve Working Capital Reduce time to market * The forecasted EBIT margin is based on the assumption of constant currencies (basis FX beginning 2015) 17

18 18 Financials

19 Business development Dräger Group Q Q million million million million million million million Net Sales 2, , , , , % growth 13.9% 3.6% 5.2% 0.0% 2.5% -1.2% 7.2% % growth (currency adjusted) 9.5% 4.4% 2.5% 3.1% 4.0% 2.9% 6.3% Gross margin 48.0% 49.1% 49.2% 48.3% 46.7% 46.8% 47.4% Functional Expenses % of Net Sales -38.5% -39.7% -39.4% -39.7% -39.7% -34.0% -34.7% EBITDA EBITDA Margin 11.3% 12.2% 12.5% 11.4% 10.5% 15.1% 15.6% EBIT EBIT Margin 8.9% 9.5% 9.7% 8.5% 7.3% 12.5% 12.6% Interest Result Tax rate 31.8% 30.8% 31.3% Net Profit DVA % % Currency adjusted 12M: order intake +2.8%, orders on hand -5.6%, net sales +4.0% Currency adjusted quarter: order intake +5.5%, orders on hand -5.6%, net sales +6.3% 19

20 Business development Medical division, Safety division Medical division (in EUR million) Safety division (in EUR million) % 9.9% 1,558 1, % 1, % 10.3% % Net Sales EBIT % EBIT-margin 20

21 Key figures Change million million million million million % Cashflow (from operating activities) in % of EBIT 114% 76% 77% 34% 105% Investments Cash and cash equivalents Net financial debt Net financial debt 1 /EBITDA Capital employed , , ROCE (EBIT 2 /Capital employed 1 ) 23.1% 24.3% 25.5% 19.1% 16.1% Net Working Capital DVA Headcount 1 11,291 11,924 12,516 13,334 13, Values at due date 2 EBITDA and accordingly EBIT of the last twelve months 21

22 22 Outlook

23 Outlook 2015 and mid term guidance Net Sales + 4.0% (net of currency effects) e Mid term 2019e 2.0% 5.0% (net of currency effects) CAGR 3.0% 6.0% (net of currency effects) EBIT-margin 7.3% 6.0% 8.0%* >10 %* Gross-margin 46.7% On the prior year s level Cash flow from operating activities 105.0% of EBIT > 70.0% of EBIT Equity ratio 40.1% > 40.0% * based on the assumption of constant currencies (basis FX beginning 2015) 23

24 Outlook 2015 and mid term guidance Net sales growth of 2% to 5% (net of currency effects) EBIT-margin of 6.0% to 8.0%* GP-margin on par with prior year R&D Budget increase to up to 230m Improvement of SG&A ratio** of 1pp R&D ratio starting to decline first improvements in time to market Net sales growth CAGR 3 6 % (net of currency effects) Improvement of SG&A ratio** of additional 1pp time to market improved by 50%*** stable gross profit margin EBIT-margin above 10%* * based on the assumption of constant currencies (basis FX beginning 2015) ** compared to 2014 (SG&A ratio = 31%) at comparable FX rates and before possible on-off expenses for restructuring or similar *** innovation projects starting

25 25 Guiding philosophy What we stand for

26 26

27 Dräger executive board Stefan Dräger Anton Schrofner Gert-Hartwig Lescow Chairman of the Executive Board (Chief Executive Officer) Executive Board member for Innovation and IT Executive Board member for Finance (Chief Financial Officer) Fifth generation of the Dräger family to lead the company Responsible for the Africa, Asia/Pacific and Middle East regions Responsible for the Americas region At Dräger since 1992 At Dräger since 2010 At Dräger since

28 Shareholder structure 10,160,000 common shares (28.5 % free float) 7,100,000 preferred shares (100.0 % free float) Shareholding Common shares Shareholding Dr. Heinrich Dräger GmbH 28.5% 4.3% 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 28

29 Consolidated balance sheet Assets 31 Dec Dec 2014 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, ,

30 Consolidated balance sheet Equity and liabilities 31 Dec Dec 2014 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, ,

31 All Regions contributed to top-line growth Regional Order Entry of Dräger Group America Europe +5.2% +2.9% constant currency constant currency 1,360 1, % % 471 nominal Middle East, Africa, Others nominal 2013 Asia-Pacific +6.4% +5.4% constant currency constant currency +5.1% +2.6% 392 nominal nominal

32 Business development Medical division Q Q million million million million million million Change % Order Intake 1, , , , Order on hand Net Sales 1, , , , EBIT EBIT Margin 12.9% 11.9% 9.9% 8.1% 15.8% 16.0% DVA Currency adjusted 12M: order intake +2.8%, orders on hand -4.6%, net sales +4.3% 1 Currency adjusted quarter: order intake +4.1%, orders on hand -4.6%, net sales +7.2% 32

33 Business development Medical division: order entry in Q and FY 2014 Middle East, Africa & Others Asia/Pasific % nom % cc % +4.1% % +11.5% -17.0% +7.7% 76.5 % nom % cc 1, % +2.8% % -4.3% +3.5% +6.3% -2.4% +0.6% +3.0% +4.0% % +12.6% Americas +2.4% +3.2% Q FY 2014 Europe 33

34 Business development Safety division Q Q Change million million million million million million % Order Intake Order on hand Net Sales EBIT EBIT Margin 9.5% 11.5% 10.3% 9.9% 13.0% 13.2% DVA Currency adjusted 12M: order intake +4.0%, orders on hand -5.6%, net sales +4.2%. 1 Currency adjusted quarter: order intake +9.8%, orders on hand -5.6%, net sales +5.1% 34

35 Business development Safety division: order entry in Q and FY 2014 Middle East, Africa & Others Asia/Pasific Americas % nom % cc % +9.8% % +0.3% +67.4% -4.5% +19.6% +12.9% +8.9% +8.8% % nom % cc % +4.0% % -6.6% +17.4% -3.2% +5.1% +6.8% +3.5% +4.0% Q FY 2014 Europe 35

36 Functional expenses Change Q Q million million million % million million Change % R&D % of Net Sales -8.3% -8.5% -8.7% -7.0% -7.4% SG&A % of Net Sales -31.0% -31.1% -30.8% -26.8% -26.9% Functional Expenses total % of Net Sales -39.4% -39.7% -39.7% -34.0% -34.7% 36

37 Cash-flow statement EUR million EUR million Group net profit Change in inventories Change in accounts receivables >100 Change in accounts payables >100 Depreciation and amortization Other operating cash flow items Operating cash flow >100 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 Change EUR million EUR million % 37

38 Innovation rate to manage power of innovation Improvement of Innovation process Continued development of new innovative products and introduction of product upgrades Increasing net sales share of new products Continued strong investments in R&D Share on new products and upgrades medical division 1 45% 40% Net sales Upgrades New products 37% 35% 30% 33% 29% 33% 34% 32% 25% 20% 26% 26% 15% 23% 28% 22% 15% 10% 5% 0% 11% 14% 10% 7% % % 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. 38

39 Financial calendar March 11, Accounts press conference, Lübeck - Analysts meeting, Frankfurt April 29, Report for the first three months Conference call, Lübeck April 30, Annual shareholders' meeting, Lübeck July 30, Report for the first six months Conference call, Lübeck November 5, Report for the first nine months Conference call, Lübeck 39

40 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