ICH WERDE DA SEIN. Conference call Interim report January 1 to September 30, 2018 Lübeck, October 30, 2018
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
Business Highlights 9M Net Sales 621 +1.3% Currency adjusted 613 +3.0% Currency 1,737 adjusted 1,729 Order intake (currency adjusted) continued to be positive. Orders on hand remain above prior year s level. Order intake (currency adjusted): Q3 +7.6% yoy 9M +3.8% yoy EBIT Q3 17 Q3 18 3.9% EBITmargin 24.4 9M'17 >-100% >-100% -0.7% EBITmargin 2.5% EBITmargin 43.5 9M'18-2.4% EBITmargin Net sales lagging behind order intake development. Gross profit margin below level of last year: Q3 42.2% (-2.6pp yoy) 9M 42.4% (-2.3pp yoy) Strong negative FX effect burden net sales volume and earnings. Q3 17-4.4 Q3 18 9M 17-41.0 9M 18 Net sales guidance confirmed. Full year EBIT-margin guidance reduced to 2.0 3.5%. 3
Order development in 9M Order entry ( million) Group Medical Safety Net Sales Group America 363 +4.0% +2.0% +8.7% 0.0% Africa, Asia, Australia 520 +8.4% +7.2% +11.5% +3.2% Europe 1,049 +1.6% +0.6% +3.0% +4.0% Group 1,931 +3.8% +2.8% +5.7% +3.0% Growth rates are net of currency effects 4
Business development 9M Q3 2017 Q3 2018 Change 9M 2017 9M 2018 Change million million % million million % Order Intake 626.3 657.4 5.0 1,928.3 1,931.2 0.2 % growth (FX adjusted) 2.1% 7.6% 4.8% 3.8% Net Sales 621.0 613.3-1.2 1,737.0 1,729.1-0.5 % growth (FX adjusted) 7.0% 1.3% 2.4% 3.0% Gross margin 44.9% 42.2% 44.7% 42.4% Functional Expenses -253.4-262.6 3.6-730.3-771.4 5.6 % of Net Sales -40.8% -42.8% -42.0% -44.6% EBIT 24.4-4.4 >-100 43.5-41.0 >-100 EBIT Margin 3.9% -0.7% 2.5% -2.4% DVA 67.0-16.1 >-100 5
Functional Expenses 9M 9M 2017 9M 2018 Change Change million million % % R&D 171.7 191.6 11.6 13.2 % of Net Sales 9.9% 11.1% Sales & Marketing 412.8 431.2 4.5 7.4 % of Net Sales 23.8% 24.9% Administration 143.3 150.4 5.0 8.2 % of Net Sales 8.2% 8.7% SG&A 556.1 581.7 4.6 7.6 % of Net Sales 32.0% 33.6% Other operating income 2.5-1.9 Functional Expenses total 730.3 771.4 5.6 7.9 % of Net Sales 42.0% 44.6% Headcount 1 13,642 14,233 4.3 1 Values as of reporting date net of FX 6
Key Figures 9M 9M 2017 9M 2018 million million Change % Cashflow from operating activities 78.5-42.0 >-100 Investments 63.7 54.0-15.4 Cash and cash equivalents 1 200.4 135.8-32.2 Net financial debt 1 16.1 69.3 >100 Net financial debt 1 /EBITDA 2 0.07 0.44 Capital employed 1 1,213.7 1,283.4 5.7 ROCE (EBIT 2 /Capital employed 1 ) 12.6% 5.6% Net Working Capital 1 537.7 616.8 14.7 1 Values as of reporting date 2 EBITDA and accordingly EBIT of the last twelve months 7
Outlook EXPECTATIONS FOR FISCAL YEAR 2018 Net sales 2017 2018e 3.3% +2.0 - +5.0 % (net of currency effects) (net of currency effects) EBIT margin 6.1% 2.0-3.5 % Dräger Value Added EUR 70.7 million EUR -40-0 million 8
9 Questions & Answers
Guidance 2018 EXPECTATIONS FOR FISCAL YEAR 2018 Net sales 2017 2018e 3.3% +2.0 - +5.0 % (net of currency effects) (net of currency effects) EBIT margin 6.1% 2.0-3.5 % Dräger Value Added EUR 70.7 million EUR -40-0 million Other forecast figures: Gross margin 44.8 % 42.5-44.0 % Research and development c EUR 234.7 million EUR 245-260 million Interest result EUR -12.8 million Slight improvement Days working capital (DWC) 111.7 days on prior year's level Investment volume EUR 106.2 million EUR 85-100 million* Net financial debt EUR -29.2 million Slight deterioration *excluding company acquisitions 10
Business development Q3 Segments Europe Americas Africa, Asia, Australia Dräger Group Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 million million million million million million million million Order entry 343.2 341.9 120.4 135.1 162.7 180.4 626.3 657.4 Net Sales 342.4 339.3 117.1 116.6 161.5 157.3 621.0 613.3 EBITDA 33.3 22.8-0.1-7.4 12.6 0.7 45.7 16.2 EBIT 23.0 12.9-5.5-12.8 6.9-4.6 24.4-4.4 EBIT-margin 6.7 3.8-4.7-11.0 4.3-2.9 3.9-0.7 Capital Employed 1 565.6 587.5 284.2 310.8 364.0 385.2 1,213.7 1,283.4 ROCE 1,2 17.9 15.5 3.4-10.5 11.5 3.3 12.6 5.6 DVA 61.8 50.9-11.2-53.3 16.4-13.7 67.0-16.1 1 Values at due date 2 EBIT of the last twelve months 11
Business development 9M Segments Europe Americas Africa, Asia, Australia Dräger Group 9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 9M 2018 9M 2017 9M 2018 million million million million million million million million Order entry 1,050.0 1,048.5 379.5 363.2 498.9 519.5 1,928.3 1,931.2 Net Sales 960.7 984.1 344.7 317.7 431.5 427.3 1,737.0 1,729.1 EBITDA 72.3 56.1 6.6-29.7 27.0-4.4 105.8 22.0 EBIT 42.3 25.4-9.4-46.0 10.6-20.5 43.5-41.0 EBIT-margin 4.4 2.6-2.7-14.5 2.5-4.8 2.5-2.4 Capital Employed 1 565.6 587.5 284.2 310.8 364.0 385.2 1,213.7 1,283.4 ROCE 1,2 17.9 15.5 3.4-10.5 11.5 3.3 12.6 5.6 DVA 61.8 50.9-11.2-53.3 16.4-13.7 67.0-16.1 1 Values at due date 2 EBIT of the last twelve months 12
Business development Medical Q3 2017 Q3 2018 Change Change 9M 2017 9M 2018 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry 412.4 427.8 3.7 6.2 1,253.4 1,242.9-0.8 2.8 Europe 210.0 206.6-1.6 0.3 624.7 619.1-0.9 0.6 America 84.0 95.7 13.8 19.0 265.5 249.2-6.1 2.0 Africa, Asia, Australia 118.4 125.5 6.0 7.6 363.2 374.6 3.1 7.2 Net Sales 399.9 376.0-6.0-3.8 1,106.3 1,080.2-2.4 1.1 Europe 202.4 195.0-3.6-2.2 564.2 571.8 1.3 2.7 America 83.2 77.1-7.3-3.2 233.4 212.8-8.8-1.0 Africa, Asia, Australia 114.3 103.9-9.1-7.0 308.6 295.6-4.2-0.3 EBIT 9.1-14.0 > -100 4.7-56.2 > -100 EBIT-margin (%) 2.3-3.7 0.4-5.2
Business development Safety Q3 2017 Q3 2018 Change Change 9M 2017 9M 2018 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry 213.9 229.7 7.4 10.4 674.9 688.3 2.0 5.7 Europe 133.2 135.3 1.6 3.9 425.3 429.4 1.0 3.0 America 36.3 39.5 8.6 13.9 114.0 114.0 0.0 8.7 Africa, Asia, Australia 44.3 54.9 23.9 27.3 135.6 144.9 6.8 11.5 Net Sales 221.1 237.3 7.3 10.3 630.7 648.9 2.9 6.5 Europe 140.0 144.3 3.1 5.5 396.5 412.2 4.0 6.0 America 33.9 39.6 16.8 21.7 111.3 104.9-5.8 2.0 Africa, Asia, Australia 47.2 53.4 13.0 16.5 122.9 131.7 7.2 12.0 EBIT 15.2 9.6-37.0 38.8 15.1-61.0 EBIT-margin (%) 6.9 4.0 6.1 2.3
Cash-flow statement 9M 2017 9M 2018 million million Change % Group net profit 24.5-34.7 >-100 Change in inventories -84.4-132.8-57.2 Change in receivables 109.2 98.4-9.9 Change in payables -10.9-14.3-31.9 Depreciation and amortization 62.4 63.1 1.1 Other operating cash flow items -22.3-21.7 2.7 Operating cash flow 78.5-42.0 >-100 Investing cash flow -48.8-44.1 9.7 Free cash flow 29.7-86.1 >-100 Financing cash flow -43.0-23.4 45.6 Change in cash 1-13.3-109.5 >-100 Cash and cash equivalents 2 200.4 135.8-32.2 1 Change in cash and cash equivalents, i.e. without any effect of exchange rates 2 Values as of reporting date
Financial calendar 2019 March 7, 2019 - Analysts meeting April 25, 2019 - Report for the first three months 2019 Conference call May 10, 2019 - Annual shareholders' meeting, Lübeck, Germany August 8, 2019 - Report for the first six months 2019 Conference call October 30, 2019 - Report for the first nine months 2019 Conference call 16
Contact Melanie Kamann Corporate Communications Thomas Fischler Investor Relations Drägerwerk AG & Co. KGaA Drägerwerk AG & Co. KGaA Moislinger Allee 53 55 Moislinger Allee 53 55 23558 Lübeck, Germany 23558 Lübeck, Germany Tel +49 451 882-3998 Tel +49 451 882-2685 Fax +49 451 882-3944 Fax +49 451 882-3296 Mobile +49 170 8558152 Mobile +49 151 12245295 melanie.kamann@draeger.com www.draeger.com thomas.fischler@draeger.com www.draeger.com 17