WELCOME PRESENTATION DÜRR INVESTOR RELATIONS. November 2015

Transcription

1 WELCOME PRESENTATION DÜRR INVESTOR RELATIONS November

2 DISCLAIMER This investor presentation has been prepared independently by Dürr AG ( Dürr ). The presentation contains statements which address such key issues as Dürr s strategy, future financial results, market positions and product development. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. Dürr AG, CCI, Investor Relations, November

3 AGENDA 1. Dürr: global leader in strong competitive position 2. Markets 3. Dürr Strategy Financial overview, outlook and summary Dürr AG, CCI, Investor Relations, November

4 DÜRR: GLOBAL LEADER IN STRONG COMPETITIVE POSITION Customers Fast facts Market shares between 30-60% in the different machinery and engineering activities ~60% of revenue from automotive business; all OEMs worldwide as customers Strong emerging markets presence with 40-50% share of global incoming orders High entry barriers with limited competitive set Business drivers: market growth, growing replacement potential (automotive); increasing automation, flexibilization & globalization (industry); growing and aging installed base & customer excellence (service) Dürr AG, CCI, Investor Relations, November

5 GROUP STRUCTURE WITH 5 DIVISIONS Figures 2014 PAINT AND FINAL ASSEMBLY SYSTEMS APPLICATION TECHNOLOGY MEASURING AND PROCESS SYSTEMS CLEAN TECHNOLOGY SYSTEMS WOODWORKING MACHINERY AND SYSTEMS Paint Shops & Final Assembly Systems Paint Application Technology for Automotive and General Industry Balancing, Assembly & Testing, Filling, Cleaning Machines Air Purification Systems, Energy Efficiency Systems Machinery and Systems for Stationary Woodworking Sales: 1,078 m EBIT: 106 m EBIT margin: 9.9% ROCE 1 : >100% (¹ negative CE) Sales: 526 m EBIT: 55 m EBIT margin: 10.5% ROCE: 32.3% Sales: 582 m EBIT: 70 m EBIT margin: 12.1% ROCE: 28.0% Sales: 136 m EBIT: 8 m EBIT margin: 5.6% ROCE: 17.5% Sales 1 : 915 m EBIT 1 : 37 m EBIT margin 1 : 4.0% ROCE 1 : 8.6% ( 1 source: HOMAG annual report) Dürr AG, CCI, Investor Relations, November

6 ORDER INTAKE: REGIONS/SECTORS Incoming orders rolling 12 months 2015 Incoming orders rolling 12 months 2015 Incoming orders 2015e 27% 14% 10% Mature markets 49% Emerging markets 1 51% 6% 29% 60% 30% 1 Asia (w/o Japan), Mexico, Brazil, Eastern Europe 25% Germany Rest of Europe incl. Eastern Europe North and South America Asia (w/o China), Africa, Australia China Automobiles Woodworking (e.g. furniture) Others Dürr AG, CCI, Investor Relations, November

7 AGENDA 1. Dürr: global leader in strong competitive position 2. Markets 3. Dürr Strategy Financial overview, outlook and summary Dürr AG, CCI, Investor Relations, November

8 MARKETS Worldwide automotive industry with steady growth (light vehicle production in m units) + 2% CAGR + 4% CAGR e* 2016e* 2017e* 2018e* 2019e* developed markets emerging markets 2011: Emerging markets overtaking developed markets * estimated Source: PwC Autofacts Last update: October 2015 Dürr AG, CCI, Investor Relations, November

9 FURTHER GROWTH IN THE CAR MARKET Chinese market weakness in summer 2015 expected to be temporary +5% in m units* Ʃ % % % % % CAGR Ʃ % +6% +4% +3% Ʃ % % Americas Europe Asia (w/o China) China Others * Light vehicles production Source: own estimates, PwC Last update: October 2015 Dürr AG, CCI, Investor Relations, November

10 GLOBAL FURNITURE MARKET Furniture consumption changes by geographical region, 2016e, in % Regional production breakdown in furniture industry (2014) South America Europe North America Middle East and Africa Asia and Pacific World (70 countries) % 45% 2% 3% 3% 4% 5% 10% China most important global market China USA Germany Italy India Poland Brazil Others Source: Center of Industrial Studies, Csil Dürr AG, CCI, Investor Relations, November

11 AGENDA 1. Dürr: global leader in strong competitive position 2. Markets 3. Dürr Strategy Financial overview, outlook and summary Dürr AG, CCI, Investor Relations, November

12 DÜRR STRATEGY 2020 Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr AG, CCI, Investor Relations, November

13 INNOVATION LEADING IN PRODUCTION EFFICIENCY R&D efforts focused on tangible customer value Cost per unit in a paint shop Reduction of resource consumption/emissions at paint shops of a German OEM 2,000 Energy 2.0 Water 3.5 VOC 6.0 Paint* Material 41% Service 3% Invest 20% Energy 8% Personnel 28% 1,800 1,600 1,400 1,200 1, % % % % Ø cost per unit in a current paint shop = 320 * 0 kwh/unit 0.0 m³/unit 0.0 kg/unit 0.0 l/unit * Compared to years ago *in spray booth only Dürr AG, CCI, Investor Relations, November

14 GLOBALIZATION ADDRESSING NEW MARKETS Example: Industrial products in Application Technology division Complete range of application products for the general industry (e.g. plastics, wood, furniture, construction) Sales channels: Distributors, integrators, Dürr web shop & Dürr regional centers Product range (extract): Pumps and fluid handling equipment, e.g. scoop piston and suction pumps for the high-pressure range Product systems for electrostatic application, e.g. electrostatic atomizers Conventional application systems, e.g. spray guns Roll out worldwide within the next 2 years, market size > 3 bn, target 100 m revenue by 2019 Graco 23% Competition Iwata 7% Finishing Brands 8% Others 31% Nordson 31% Dürr AG, CCI, Investor Relations, November

15 GLOBALIZATION FOCUS ON EMERGING MARKETS Example: China China CAGR in % Incoming orders (in m) Sales revenues (in m) Employees (12/31) 271 1, New Dürr site Shanghai/Baoshan Double-digit sales growth in Brazil, Mexico and India since 2005 Example China: - Doubling of capacities in space to 63,000m² up to now; new campus in China in Increasing use as manufacturing, purchasing and engineering center Test centers in Japan, China, India and US Expansion in South East Asia Dürr AG, CCI, Investor Relations, November

16 DÜRR SERVICE GROWTH STRATEGY Service: Long-term target: up to 30% of sales Service revenues (in m) In % of Group revenues China service revenues in % of Group revenues ~5 ~8 ~13 Strengthening service business and capacities in emerging markets (e.g. China, India, Turkey) Service pricing, dedicated offerings, complaint management system, decentralized ware-housing, delivery speed 9M 2015: Ongoing strong expansion; on a comparable basis: +13% Dürr AG, CCI, Investor Relations, November

17 DÜRR SERVICE GROWTH STRATEGY Number of paint robots sold (cumulative figure) Service type in % of revenues 12,000 10,000 8,000 6,000 4,000 2,000 Maintenance, assessments, seminars 18% Spare parts and repairs 42% Modifications and upgrades 40% 0 Dürr AG, CCI, Investor Relations, November

18 EFFICIENCY Global processes as a basis for profitability Further globalization of Dürr processes Global processes / localization Global processes with full utilization of SAP/CAX/CRM/SharePoint Global IT platforms, integrated systems, one single database worldwide, continuous capex spending Expansion of sourcing offices in China, India, Mexico, Brazil Expansion of manufacturing in China, Mexico for international supply Rigorous localization of Dürr products in the emerging markets Supplemental product portfolio with low-cost/low-end solutions Reduction of specifications Local added value Dürr AG, CCI, Investor Relations, November

19 TAKEOVER OF HOMAG GROUP Takeover details Dürr acquired 55.9% of HOMAG Group AG for m in cash Dürr joined a pool agreement and thus secured 77.9% of the voting rights, family/foundation remains shareholder with 22.1% HOMAG is expected to contribute positively to Dürr s EBIT from 2015; consolidation in Q New management team on board; Dürr management board members in HOMAG supervisory board Domination and profit & loss transfer agreement since March 2015, guarantee dividend of 1/share HOMAG Group financials in m e Incoming orders Sales EBIT PPA EBIT at Dürr level consolidated as of 10/3/ Including optimization costs of 8 m; analyst estimates Dürr AG, CCI, Investor Relations, November

20 HOMAG GROUP AT A GLANCE World market leader in woodworking machinery and systems Headquarters in Schopfloch, 90 km from Bietigheim Areas of application: Furniture industry, Wood-based panel-processing Construction supplies and timber home construction industries Key customers products: Home and office furniture, kitchens Parquet and laminate flooring, windows, doors, stairs 30% market share, biggest customer: IKEA (~ 5% of sales) International group with 37 locations worldwide; only 20% of sales in Germany 5,800 employees worldwide, thereof 3,900 in Germany Dürr AG, CCI, Investor Relations, November

21 LEADING THE HOMAG GROUP TO ITS FULL POTENTIAL FOCUS program started in June 2015 Lever Initiatives Targets 2020 Value creation program FOCUS Growth Optimization Expansion China Expansion US Service initiative Project business Innovation program Global organization ( ONE HOMAG ) Process improvement ERP rollouts Modular products Incentive systems Revenue: 1.25 bn EBIT margin: 8 10% Note: 2020 targets are indications for performance ambition only. Not supported by HOMAG s mid-term plans yet. Dürr AG, CCI, Investor Relations, November

22 AGENDA 1. Dürr: global leader in strong competitive position 2. Markets 3. Dürr Strategy Financial overview, outlook and summary Dürr AG, CCI, Investor Relations, November

23 EARNINGS ON THE RISE Despite extraordinary costs of 20 m: EBIT 9M % in m M M 2015 in % Incoming orders 2, , , , Sales revenues 2, , , , Orders on hand (end of period) 2, , , , Gross profit on sales Gross margin (%) percentage points EBIT EBIT margin (%) percentage points Net income Dürr AG, CCI, Investor Relations, November

24 SOLID FINANCIAL RATIOS Equity ratio at 22% due to changed entitlement of the HOMAG free shareholders; equity ratio should reach 24% at year end 2015 Pension risks limited; only 2% of balance sheet total Net financial status reduced due to cash-out for HOMAG and a normalization in NWC ROCE surpassed again the 40% mark 12/31/ /31/ /31/ /30/2015 Equity in m Equity ratio in % Net financial status in m Net working capital in m DWC (days working capital) ROCE in % annualized Dürr AG, CCI, Investor Relations, November

25 STRONG CASH GENERATING ABILITY Cash flow adjusted by normalized NWC changes at high level in m e EBT Other aggregated items of cash flow Net working capital changes to -280 Cash flow from operating activities to 50 Cash flow from operating activities assuming constant DWC of Free cash flow assuming constant DWC of EBT as indicator for cash flow from operating activities Free cash flow adjusted by normalized 2 NWC changes at Ø m 1 consensus estimates 2 NWC changes strongly influenced by prepayments normalized NWC changes assumes constant 20 DWC Dürr AG, CCI, Investor Relations, November

26 OUTLOOK 2015 Sales guidance increased to bn; EBIT margin between % in m 3,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1, ,600-3,700 3,400-3, in % Sales Incoming orders Gross margin (in %) EBIT margin (in %) Dürr AG, CCI, Investor Relations, November

27 SUMMARY Robust market conditions, positioned for further growth Ongoing good demand situation, somewhat weaker project pipeline in China should be compensated by a higher demand in North America & Europe Positioned for further growth: focus on emerging markets, brownfield business, product innovation and new business segments (e.g. industrial painting components business/application technology) Service and modernization business becoming more important, group-wide project Customer Excellence@Dürr getting traction Cost containment, global processes, localization, flexibility Solid financial structure, fully funded until 2021 HOMAG will contribute positively to Dürr s EBT in 2015; strong improvement in 2016 Dürr AG, CCI, Investor Relations, November

28 FINANCIAL CALENDAR 11/17/2015 DZ BANK Equity Conference, Frankfurt 11/23/2015 German Equity Forum, Frankfurt 12/02/2015 Goldman Sachs European Industrials Conference, London 12/03/2015 Berenberg European Conference, Bagshot 02/25/2016 Preliminary figures for fiscal 2015 Contact Dürr Aktiengesellschaft Corporate Communications & Investor Relations Günter Dielmann / Stefan Tobias Burkhardt Carl-Benz-Str Bietigheim-Bissingen Germany Phone: /-3558 Telefax: investor.relations@durr.com Dürr AG, CCI, Investor Relations, November

29 Appendix Dürr AG, CCI, Investor Relations, November

30 2015 AND 2016 FINANCIAL IMPACT FROM HOMAG TAKEOVER 1 in m 9M 2015 FY 2015e FY 2016e EBIT HOMAG Group Optimization costs PPA EBIT at Dürr level Financial result impact Financial result HOMAG (incl. refinancing syn loan) EBT at Dürr level simplified overview 2 consensus estimates 3 domination and profit & loss transfer agreement; guarantee dividend Dürr AG, CCI, Investor Relations, November

31 SHAREHOLDER STRUCTURE / DIVIDEND POLICY Free float at 71.3%* Shareholder structure (as of November 2015) 25.2% Heinz Dürr GmbH, Berlin 3.5% Heinz und Heide Dürr Stiftung, Berlin 71.3% Institutional and private investors - Thereof MainFirst: 3.6%** - Thereof Alecta Pensionsförsäkring: 3.2%** - Thereof Dürr Board of Management: 0.6%** Dividend policy: 30-40% payout ratio * Free float calculated according to Deutsche Börse AG ** According to the German Securities Trading Act (WpHG) Dürr AG, CCI, Investor Relations, November

32 MARKET SHARE DÜRR/COMPETITORS* Paint and Final Assembly Systems Application Technology Dürr 50%, Eisenmann 10-15%, Taikisha/Geico 20% local competitors: Scivic, Giffin, Gallagher Kaiser, Trinity (Toyota) Dürr >50%, ABB 15-20%, Fanuc 15-20%, Yaskawa <10% Measuring and Process Systems Balancing Dürr 40%, Kokusai 15%, CEMB 10% Filling Dürr 25%, Fives Cinetic 22%, SAT Anlagentechnik 15% Testing Dürr 30%, BEP 20%, Fori 10%, Siemens 5% Cleaning Dürr 40%**, Valiant 20%, ABB 8%, Elwema 6%, Markert 4%, Sugino 4% Clean Technology Systems Woodworking Machinery and Systems Dürr 40-50%***, John Zink/KEU 20%, CTP 10% Dürr 30%, Biesse 10%, Scm group 7%, IMA 4% * own estimates, average of last 3 years ** market share relating to automotive business *** market share relating to business with exhaust-gas purification systems for automotive paint shops Dürr AG, CCI, Investor Relations, November

33 SALES DEVELOPMENT PASSENGER CARS JANUARY-SEPTEMBER 2015/14 Change year-on-year in % New EU countries Western Europe Germany India USA China Japan Brazil Russia Source: The German Association of the Automotive Industry (VDA); October 2015 Dürr AG, CCI, Investor Relations, November