INVESTOR RELATIONS PRESENTATION

Transcription

1 INVESTOR RELATIONS PRESENTATION Corporate Communications & Investor Relations Dürr AG Bietigheim-Bissingen, December

2 DISCLAIMER This publication has been prepared independently by Dürr AG/Dürr Group ( Dürr ). It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in Dürr s disclosures, in particular in the chapter Risks in Dürr s annual report. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as expect, want, anticipate, intend, plan, believe, seek, estimate, will, project or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Dürr s net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at Dürr can be found in our financial glossary on the Dürr web page ( 2

3 AGENDA 1. Executive Summary 2. Our five divisions 3. Group strategy 4. Group financials, markets and outlook 3

4 1. EXECUTIVE SUMMARY Worldwide leading supplier of efficient production technologies with outstanding digital expertise driven by automation, digitization and networked production Major customer groups: automotive, furniture and general industry Asset light business model with pronounced focus on capital employed; strong ROCE and high cash flow potential Expanding service business with healthy margins and further growth potential Group structure with efficient processes; further growth via acquisitions. HOMAG can be seen as a blueprint for further acquisitions 4

5 1. EXECUTIVE SUMMARY Dürr: global leader with a strong competitive position Customers Fast facts Market shares between 25 and 50% in different machinery and engineering activities Strong emerging markets presence with ca % share of global incoming orders Share of current incoming orders: 55% automotive business, 45% general industry, e.g. furniture, machinery EVs with growing importance. Group exposure already up to 10% of sales High entry barriers with limited number of competitors Business drivers: Greenfield: growing markets Brownfield: replacement potential Service: installed base Automation, digitization & networking 5

6 AGENDA 1. Executive Summary 2. Our five divisions 3. Group strategy 4. Group financials, markets and outlook 6

7 2. OUR FIVE DIVISIONS Divisional breakdown (2016) Dürr AG Paint and Final Assembly Systems Application Technology Clean Technology Systems Measuring and Process Systems Woodworking Machinery and Systems Incoming orders 1,210 m (1,094 m) Incoming orders 603 m (583 m) Incoming orders 166 m (177 m) Incoming orders m (683 m) Incoming orders 1,366 m (1,165 m) Sales 1,175 m (1,140 m) Sales 622 m (561 m) Sales 186 m (167 m) Sales m (624 m) Sales 1,219 m (1,082 m) EBIT 70 m (77 m) EBIT 65 m (76 m) EBIT 3 m (6 m) EBIT 2 64 m (80 m) EBIT 83 m (45 m) Operating EBIT 70 m (82 m) Operating EBIT 65 m (59 m) Operating EBIT 3 m (6 m) Operating EBIT 2 65 m (80 m) Operating EBIT 92 m (71 m) EBIT margin 6.0% (6.8%) EBIT margin 10.4% (13.6%) EBIT margin 1.8% (3.7%) EBIT margin 12.6% (12.8%) EBIT margin 6.8% (4.1%) Operating EBIT margin 6.0% (7.2%) Operating EBIT margin 10.4% (10.5%) Operating EBIT margin 1.8% (3.7%) Operating EBIT margin 12.8% (12.8%) Operating EBIT margin 7.5% (6.6%) 1 FY 2017 and 9M 2017 figures shown in the entire presentation are adjusted due to IFRS 15 2 decline due to sale of Ecoclean as of March

8 2. MARKET SHARE DÜRR/COMPETITORS 1 Paint and Final Assembly Systems Paint Final Assembly Dürr ~40-45%, Eisenmann, Taikisha/Geico, Automotive Engineering Cooperation (Scivic). Local competitors: AE, Giffin, Gallagher Kaiser, Trinity (Toyota), Georg Koch, Wenker, Sturm Dürr ~20-25%, Rofa, Automotive Engineering Cooperation, Siemens, Eisenmann, AFT, Axmann. Local competitor: Sturm Application Technology Dürr ~50%, ABB, Fanuc, Yaskawa; local competitor: Doolim Clean Technology Systems Dürr ~25%, John Zink/KEU, CTP, Anguil, Eisenmann Measuring and Process Systems Balancing Filling Testing Dürr ~45%, CEMB, Kokusai Dürr ~45%, Fives, SAT Dürr ~45%, Burke Porter Group, Fori Woodworking Machinery and Systems Dürr 31%, Biesse, scm group, Schelling/IMA. Local competitors: Nanxing, KTD 1 own estimates 8

9 2. PAINT AND FINAL ASSEMBLY SYSTEMS Paint shops and final assembly systems Turn-key paint shops for the automotive industry (OEMs, suppliers) Final assembly systems (e.g. conveyor equipment, control systems) Service and modernization of existing sites in m e 9M M 2018 Incoming orders Sales revenues 1,094 1, ,000-1, ,140 1,175 1,100-1, EBIT EBIT margin 6.8% 6.0% % 5.8% 4.4% 1 including extraordinary expenses in connection with the closure of a smaller plant in Austria ( 4.9 m) 2 including extraordinary expenses of 5-10 m due to the FOCUS 2.0 optimization program ROCE >100% >100% ~100% 90.2% % 2 1 adjusted for the derecognition of the Iran business 2 annualized 9

10 2. PAINT AND FINAL ASSEMBLY SYSTEMS New OEMs enlarge market base Faraday Future US BeeCloud 10

11 2. PAINT AND FINAL ASSEMBLY SYSTEMS: OPTIMIZATION PROGRAM Continued cost pressure and unfavorable pricing PRODUCT COST EFFICIENCY Re-allocation of OEM spending to new product developments 2015/2016 Action required for Paint and Final Assembly Systems Local competitors gaining market shares in Asia Pacific BUSINESS PORTFOLIO & GROWTH ORGANIZATION 11

12 2. PAINT AND FINAL ASSEMBLY SYSTEMS Optimization program FOCUS 2.0: 6-7% EBIT margin goal in 2020 Product cost Efficiency Business portfolio & growth Organization Reduction product costs Plastic painting new setup Capacity adjustment Optimization manufacturing footprint Sales process optimization Service growth Digital Factory China: increase of local competencies Final assembly repositioning Global structure of System Center/ Business Center Optimization Dürr Systems Group: closer cooperation within the divisions 12

13 2. APPLICATION TECHNOLOGY Paint application, glueing and sealing technology High-tech systems and software for automated paint application, glueing processes and seam sealing (e.g. robots, atomizers, color change systems, quality assurance) Interior painting automation potential Economic lifetime of paint robots: years replacement cycle just beginning Strong service potential (e.g. spare parts) due to increased installed base in m e 9M M 2018 Incoming orders Sales revenues EBIT EBIT margin 13.6% % % 10.4% 10.2% ROCE 40.0% % 27-32% 25.7% % 3 1 adjusted for the derecognition of the Iran business 2 including extraordinary income of 17 m 3 annualized 13

14 2. APPLICATION TECHNOLOGY Addressing new markets: General industry Application products: components & automated paint solutions Complete range of application products for general industry (e.g. plastics, wood, furniture, construction) Dürr automotive robot also used for painting of larger industrial products Pre-installed and ready2spray compact robot system, jointly developed by Kuka and Dürr. Kuka provides the compact robot and Dürr the paint application technology integrated solution is unique to the market. Target: 50 m revenue by 2020 Competition 1 8% 7% 31% Graco Others 23% Nordson Finishing Brands 31% Iwata 1 Addressable market ~ 1.5 bn 14

15 2. PAINT BUSINESS 1 TYPE Greenfield BUSINESS DRIVERS Expansion of capacity in new and existing locations (e.g. EVs) Replacement of old and non-productive plants Brownfield Increased quality requirements especially in the emerging markets Efficiency enhancements: cost reductions (e.g. energy, material); cycle times Flexibility: addition of new models/facelifts to existing painting lines Automation: e.g. interior painting of vehicles Environmental regulation: stricter emissions laws still 47% of paint shops are based one solvent borne Service Continuous demand: spare parts, upgrades, training Wear & tear of aging installed base: smaller modernizations and upgrades 1 Divisions Paint and Final Assembly Systems and Application Technology 15

16 2. PAINT BUSINESS 1 Brownfield with growing importance Incoming orders 2008: 950 m Incoming orders 2017: 1,812 m Incoming orders 2022e 24% 28% 30% 35% 48% 15% 61% 24% 35% Greenfield Brownfield Service Incoming orders increased by 90% within 9 years, mostly due to higher demand in brownfield & service business 1 Divisions Paint and Final Assembly Systems and Application Technology 16

17 2. CLEAN TECHNOLOGY SYSTEMS Air pollution control systems and noise abatement systems Drivers: regulation (clean air), environmental issues Customer split: 25% automotive; 25% chemistry, petrochemical, pharmaceutical; 50% other industries Loss making energy efficiency technologies closed MEGTEC / Universal acquisition closed in 10/ : EBIT margin goal: 6-7%; up to 500 m sales in m e 1 9M M 2018 Incoming orders Sales revenues EBIT 6 3 negative EBIT margin 3.7% 1.8% negative 3 1.4% -11.9% 3 ROCE 13.6% 5.5% negative 3 4.2% % 4 1 incl. acquisition of MEGTEC & Universal. Consolidation in Q adjusted for the derecognition of the Iran business 3 including impact of discontinuation of loss-making micro gas turbine business: FY 2018e ~ -17 m; 4-5 m ppa due to MEGTEC/Universal acquisition) 4 annualized 17

18 2. CLEAN TECHNOLOGY SYSTEMS Acquisition MEGTEC / Universal: The opportunity to boost Dürr s Clean Technology Systems business Improved Scale Improved scale boosts competitiveness especially in air pollution technology. MEGTEC is a leading player in 4 out of 5 key applications and has a strong footprint especially in North America Independent service organization Set-up independent, decentralized service organization based on the existing MEGTEC organization with a proactive service approach servicing Clean Technology Systems (CTS) and non-cts products Complementary product portfolio Additions to the existing portfolio, especially wet and dry electrostatic precipitators, dust control and particle filtration Promising synergy potential Sales (wood products, chemicals) and service (global service network) as well as bottom-line synergies (cost degression, e.g. in procurement) Reasonable valuation MEGTEC / Universal expected to generate 200 m sales and 5% EBIT-margin in 2018 Enterprise value 110 m New targets for CTS Sales potential of up to 500 m and EBIT margin potential between 6-7% in 2021 for the new Dürr Clean Technologies Systems division 18

19 2. MEASURING AND PROCESS SYSTEMS Highly profitable machinery niches with global presence High market shares in all businesses Positioned globally with a high degree of localization Strong footprint in China with local production, R&D etc. in m e 9M M 2018 Incoming orders Sales revenues EBIT EBIT margin 12.8% 12.6% % 12.5% 11.6% ROCE 24.9% 24.6% 20-25% 24.5% % 3 1 Due to sale of Ecoclean business as of March 31, 2017 (2016: business volume ~ 200 m) not fully comparable 2 adjusted for the derecognition of the Iran business 3 annualized 19

20 2. MEASURING AND PROCESS SYSTEMS Innovation secures market leading position Balancing Balancing of rotating parts and components for many manufacturing industries, service centers Assembly & testing End of line assembly and testing equipment for the automotive industry Filling Filling of appliances (refrigerators, air conditioners and others) Filling automotive end of line 20

21 2. WOODWORKING MACHINERY AND SYSTEMS Impressive growth since acquisition in 2014 Product range from stand-alone machines through to complete, automated production lines for efficient woodworking Major customers: Furniture industry, construction supplies and timber home construction Strong need for automation: Batch one production, fully digitized process from order to delivery Major trends: Individualization; consolidation at customers side 31% market share, biggest customer: IKEA (~ 5% of sales) in m e 9M M 2018 Incoming orders Sales revenues 1,165 1,366 1,350-1,450 1, , ,082 1,219 1,250-1, EBIT EBIT margin 4.1% 6.8% % 7.3% 6.3% ROCE 11.3% 22.0% 15-20% 23.2% % 1 ¹ annualized 21

22 2. WOODWORKING MACHINERY AND SYSTEMS Transformation for substantial value creation Digitization: Software house and IIoT market place tapio Strengthening sales expertise with a new concept to boost sales; China in focus Service growth ~ 8% p.a. to be expected; service excellence M&A: New segments & closing portfolio gaps Global engineering and production footprint; reduction of value add in Germany Standardization (scalable modular platforms) Systems business: Also addressing mid-size customers 22

23 2. WOODWORKING MACHINERY AND SYSTEMS Reorganization of production system with efficiency gains of >20% Short term bottlenecks due to product mix change towards highly complex systems business supply chain problems high order load overstretched current traditional production system unexpectedly complex SAP implementation at Schopfloch plant task force in place to assure deliverability, external specialists, increased inventories, stock reduction of produced machinery One consistent production system to be implemented in all plants until 2020 scalable and standardized highly flexible reduction of delivery times process optimization (e.g. order to cash) design to cost already implemented and tested in one plant 23

24 AGENDA 1. Executive Summary 2. Our five divisions 3. Group strategy 4. Group financials, markets and outlook 24

25 3. DÜRR STRATEGY 2020 Dürr strategy 2020 targets: up to 4.2 bn sales, 7-8% EBIT margin, >30% ROCE 25

26 3. STRATEGY Innovation: R&D efforts focused on tangible customer value Cost per unit in a paint shop Reduction of resource consumption/emissions in paint shops of a German OEM 20% Energy Water VOC Paint² 2, % 3% 28% 8% Invest Energy Personnel Service Material Ø cost per unit in a current paint shop = ,800 1,600 1,400 1,200 1, % -71% 1-73% kwh/unit m³/unit kg/unit % l/unit 1 Compared to years ago 2 In spray booth only 26

27 3. STRATEGY Innovation: 4 smart dimensions Smart Products: Intelligent, networked and self-regulating products, machinery and plants (equipped with sensors) Smart Services: Extended, intelligent service offerings thanks to online integration of machinery and plants Smart Processes: Efficient development, production and distribution of our products, plants and services Smart Factories: Digitalization and networking of production, tracking and analysis of data 27

28 3. STRATEGY Innovation: Full line IIoT offering reinforces leading market position against pure software providers Founding partners ADAMOS GmbH: DMG Mori, Dürr, Software AG, Carl Zeiss, ASM Establish ADAMOS as industry standard On edge, on premise and in the cloud Leading edge technologies Large combined installed base "White label" solution allows for company-individual IIoT market places ADAMOS App Factory develops new apps ADAMOS: Adaptive Manufacturing Open Solutions Next step: Scaling up ADAMOS by integrating additional partners from the machinery industry. Latest partners: ENGEL & Karl Mayer 28

29 3. STRATEGY: DIGITAL SOLUTION PROVIDER FOR OUR CUSTOMERS Two digital market places as enablers for digital manufacturing LOXEO and tapio: market places for IIoT apps and digital services Suppliers and competitors machines can also take part and contribute information/data No software vendor lock-in Dürr Digital Factory: 70 specialists develop new apps Customer benefit of LOXEO and tapio: optimizing production, increasing system availability 29

30 3. STRATEGY Globalization: High investments in network of locations strengthening local activities in m Capex Acquisitions Total Extension of global presence: Reinforcement of new markets but also investments in established markets in North America and Germany with good prospects 15 production, test and engineering centers: extended, modernized or newly built Campus concept transferred to key locations: more efficient processes, open communication and sustainable energy concept Capex spending in 2018e: m New Dürr Campus in Shanghai, China 30

31 3. STRATEGY Acquisition course to be continued / HOMAG takeover as a blueprint for acquisitions Criteria for major HOMAG II acquisition Target areas: mechanical engineering, automation technology, measuring systems, environmental World market & innovation leadership No restructuring cases but earnings improvement and synergy potential Making use of Dürr s excellent positioning in global/emerging markets Corporate culture should fit Sales size up to 1.5 bn Valuation must be reasonable 2018: Some bolt-on acquisitions increase HOMAG participation (64%) Environmental business doubled 31

32 3. STRATEGY Service: Long-term target 30% of sales Sales revenues (in m) In % of group sales Strengthening service business and capacities in emerging markets (e.g. China, India, Mexico) with disproportionately high potential Service pricing, dedicated offerings, complaint management system, decentralized ware-housing, delivery speed Q service sales: +10% 9M 2018: Service sales adjusted for Dürr Ecoclean +6% CAGR since 2012: 13% 32

33 3. STRATEGY Service Service type in % of revenues 17% Number of paint robots sold (cumulative figure) 12,000 Modifications and upgrades 10,000 40% 8,000 Spare parts and repairs 6,000 43% Maintenance, assessments, seminars 4,000 2,

34 3. STRATEGY Efficiency: Global processes, localization & portfolio optimization Further globalization of Dürr processes Global processes with full utilization of SAP/CAX/CRM/SharePoint Global IT platforms, integrated systems, one single database, continuous capex spending Expansion of sourcing offices and manufacturing in China, India, Mexico, Brazil Rigorous localization of Dürr products in the emerging markets Supplemental product portfolio with low-cost/low-end solutions; local added value Reduction of specifications Consistent portfolio optimization to improve profitability Example: Sale Dürr Ecoclean 2017 Cash inflow 108 m, book gain 23 m Low-margin business Focus on conventional power train technology (internal combustion engine) with limited growth perspective Further optimizations among others: Aircraft assembly technology sold in 2014; Austrian workshop closed in 2016; Energy efficiency streamlining finished in 2018, e.g. closure of Dürr thermea and Micro Gas Turbine 34

35 AGENDA 1. Executive Summary 2. Our five divisions 3. Group strategy 4. Group financials, markets and outlook 35

36 4. ON THE WAY TO RECORD SALES AND ORDER INTAKE IN 2018 in m M M 2018 Incoming orders 3, , , , ,753.2 Orders on hand (end of period) 2, , , , ,465.4 Sales 3, , , , ,734.1 Gross profit on sales Gross margin (%) EBIT EBIT before extraordinary effects EBIT margin (%) EBIT margin (%) before extraordinary effects Net income EBIT before extraordinary effects 2018 impacted by expected margin decline in Paint and Final Assembly Systems and output problems at HOMAG improvements expected. 1 adjusted for the derecognition of the Iran business 36

37 4. CHANGED PREPAYMENT PATTERN Cash flow improvement in Q expected in m M M 2018 EBT Other aggregated items of cash flow Net working capital changes Cash flow from operating activities Interest paid (net) Capex Free cash flow Inventory increase main cause for NWC deterioration in 9M 2018 Q3 cash flow from operating activities improved and reached a positive 27.8 m Cash flow improvement in Q expected, dependent on project execution and customer payments 37

38 4. NWC: DECLINE IN NWC TO BE EXPECTED IN Q4 in m 09/30/ /31/ /30/2018 Materials and supplies (net) Work in process from small series production Finished goods and merchandise (net) Prepayments to suppliers Inventories and prepayments Total trade receivables Total contract assets Trade payables (incl. liabilities from notes payable) Total contract liabilities = Net working capital included in total balance (total work in process less billings) 38

39 4. WORK IN PROCESS BALANCE: NET CUSTOMER PAYMENT OVERHANG IN GUIDED RANGE in m 09/30/ /31/ /30/2018 Assets Total contract assets Work in process from small series production Liabilities Total contract liabilities Total balance (Total work in process less billings) Total balance FY 2018e between 0 m and -100 m 39

40 4. SOLID FINANCIAL RATIOS 12/31/ /31/ /31/ /31/ /30/2018 Equity in m Equity ratio in % Net financial status in m Net working capital in m DWC (days working capital) ROCE in % Equity up 5% compared to 09/30/2017; equity ratio of 30% as long-term goal Net financial status as of 09/30/2018 impacted by dividend outflow ( 81 m), taxes ( 63 m) and increase of HOMAG stake ( 35 m); Net financial status 2018e at m at year end 2018, dependent on project execution and customer payments in Q4 DWC target of around 40 in 2018 ROCE for FY 2018 should reach a range between 20 and 25% 1 annualized 40

41 4. FURTHER GROWTH IN THE CAR MARKET Growth drivers until 2022: China, India, South East Asia, Russia in m units % Ʃ 94.0 Ʃ % % CAGR +7% Ʃ % % % % % % % % Others China Asia (w/o China) Europe Americas 1 Light vehicles production Source: PwC, Autofacts Last update: October

42 4. TRADITIONAL OEMS WITH HIGHER INVESTMENTS 1 IN 2018 AND 2019 in bn e 2019e BMW Daimler FCA Ford GM Renault PSA VW Total Capex spending incl. capitalized R&D, Source: Deutsche Bank 42

43 4. WOODWORKING MACHINERY MARKETS Decent growth until 2022 CAGR +3% in m 5,000 Ʃ 4,458 4,000 Ʃ 3, % 763 3, % 2,000 3,028 +2% 3,405 1, e HOMAG Sales Share Machinery for wooden houses Machinery for doors, windows, flooring Furniture machinery 4% 4% 36% 5% Furniture production breakdown 12% 39% China US Germany Italy India Other 77% 18% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sources: CSIL, Euroconstruct, Holzbauverband, competitor data, regional expert evaluation 43 43

44 4. OUTLOOK: FURTHER GROWTH EXPECTED EBIT margin before extraordinary effects between 6.8 and 7.2% Order intake in m Sales in m Gross margin in % EBIT margin in % 2,793 3,467 3,702 3,8033 3,650-3,950 2,575 3,767 3,574 3,713 3,750-3, e e e e 1 incl. acquisition of MEGTEC/Universal; consolidation 10/ figures adjusted due to IFRS 15 3 adjusted for the derecognition of Iran orders 44

45 4. FINANCIAL CALENDAR 12/05/2018 Berenberg European Conference, Pennyhill, Surrey 12/05/2018 Quirin European Mid Cap Event, Geneva 01/10/2019 Oddo Midcap Forum, Lyon 01/15/2019 Commerzbank German Investment Seminar, New York 01/17/2019 Baader Helvea Toronto Corporate Day, Toronto 01/22/2019 UniCredit / Kepler Cheuvreux German Corporate Conference, Frankfurt 02/28/2019 Preliminary figures for fiscal /13/2019 MainFirst Best of Southern Germany Conference, Stuttgart 03/19/2019 BofAML Global Industrials Conference 2019, London Dürr Corporate Communications & Investor Relations contact Günter Dielmann guenter.dielmann@durr.com Mathias Christen mathias.christen@durr.com Stefan Tobias Burkhardt stefantobias.burkhardt@durr.com

46 Appendix 46

47 MANAGEMENT BOARD STRUCTURE Ralf W. Dieter CEO Carlo Crosetto CFO Dr. Jochen Weyrauch Member of the Board Application Technology, Measuring and Process Systems and Woodworking Machinery and Systems Public Relations Human Resources (Employee Affairs Director) Research and Development Quality Internal Auditing Corporate Compliance Finance / Controlling Investor Relations Risk Management Legal Affairs / Patents Global Sourcing Corporate Social Responsibility Paint and Final Assembly Systems Clean Technology Systems Information Technology Corporate Development (including M&A) 47

48 KEY DATA OF THE SHARE WKN / ISIN / DE Bloomberg / Reuters Due / dueg Class of shares Common bearer shares Index Category Trading centers / stock exchange Capital stock e.g. MDAX (Performance); CDAX (Performance); FAZ Index Stuttgart (regulated market) Frankfurt (regulated market) Several open markets m Number of shares 69,202,080 Market capitalization as of 11/05/2018 2,187 m 48

49 SHAREHOLDER STRUCTURE Free float at 71.2% % Heinz Dürr GmbH Heinz u. Heide Dürr Stiftung 71.2% 1 3.5% Institutional and private investors 2 - Thereof AXA S.A. 5.0% - Thereof The Goldman Sachs Group: 4.8% - Thereof Deutsche Bank AG: 4.7% - Thereof MainFirst: 4.7% - Thereof Morgan Stanley: 4.0% - Thereof Alecta Pensionsförsäkring: 3.2% - Thereof BlackRock, Inc.: 3.2% - Thereof members of the Dürr Board of Management: 0.3% - Thereof members of the Dürr Supervisory Board: 0.1% 1 Free float calculated according to Deutsche Börse AG 2 According to the relevant laws 49

50 SHARE PRICE DEVELOPMENT 1,400 1,300 1,200 1,100 1, Dürr indexiert DAX indexiert MDAX indexiert Remarkable long-term outperformance compared to DAX & MDAX Dürr highly benefited from China boom due to its strong emerging markets presence HOMAG takeover in 2014 took some time to be understood, but then levered the Dürr share. In 2015, China fears impacted the stock markets and Dürr, too. Value driver: digitization and HOMAG boosted outperformance of Dürr share until end of : Rising risks of international frictions. Operating performance 2018 weaker than expected, outlook for 2019 more promising 50

51 DIVIDEND POLICY Earnings per share Dividend per share in Dividend policy: 30-40% payout ratio Total payout Payout ratio 0.0 m 5.2 m 20.8 m 38.9 m 50.2 m 57.1 m 64.0 m 72.7 m 76.1 m - 32% 32% 35% 38% 38% 38% 39% 38%

52 ANALYSTS VIEW ON DÜRR As of 11/05/ % 60% 20 equity research analysts cover Dürr ø target price: Target price range between 30 and % recommend to buy or hold the Dürr share Buy Hold 52

53 FIXED INCOME Key data Bond / Bonded loan ( Schuldscheindarlehen ) Bond Bonded loan ( Schuldscheindarlehen ) WKN / ISIN A1YC44 / XS Issued volume EUR 300 m EUR 300 m Coupon 2.875% 1.6% in average Maturity / Repayment April 3, , 7, 10 years (issued March 2016) Nominal value EUR 1, Stock exchange / listing regulated market Luxembourg Stock Exchange, unofficial trading German stock exchanges - Rating Since 2010 it does exist neither a company rating nor a bond rating - Syndicated loan held by Dürr AG: 465 m Bilateral credit facilities of a smaller volume and liabilities from finance leases 53

54 EQUITY STORY Good reasons to be invested in Dürr World market leadership: In ~95% of its product portfolio with market shares between 25 and 50% high entry barriers Service potential: Increased installed base is starting point for a growing and profitable service business. Market positioning: About 40-50% of the business volume from emerging markets. Best positioned in competition. Growth: Organic growth expected at ~3% p.a. Further acquisitions should contribute to the expansion. Technology leader: Dürr enables customers to reduce costs per units and thus to increase production efficiency. Industry 4.0 / smart factory: Leading due to intelligent solutions (e.g. ADAMOS, tapio & LOXEO) Value creation: ROCE exceeds cost of capital significantly ROCE 2017 at 39.4%, cost of capital 2017 at 7.9%. Earnings decline 2018 only temporarily mainly due to one offs back on track. 54

55 VALUE MANAGEMENT Key figures Incoming orders Sales revenues FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY , , , , , , , , , , , ,713.2 EBIT Operating cash flow Free cash flow ROCE EVA The most important performance indicators at Dürr Incoming orders Sales EBIT ROCE (EBIT/Capital employed). Cash flow from operating activities Free cash flow Economic Value Added (EVA) Also non-financial performance indicators tracked, e.g. Employee and customer satisfaction Training/education Ecology/sustainability R&D/innovation 55

56 INVESTOR RELATIONS PRESENTATION Corporate Communications & Investor Relations Dürr AG Bietigheim-Bissingen, December