Worldwide. On Site. Conference call Interim report January 1 to June 30, 2017 Lübeck, July 27, 2017
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 H1 Net Sales EBIT 579 21.2 581 Q2 16 Q2 17 3.7% EBITmargin +1.0% Currency adjusted 16.8 Q2 16 Q2 17 1,111 H1'16 5.5 H1'16 0.0% Currency adjusted -21% >100% 2.9% EBITmargin 0.5% EBITmargin 1,116 H1'17 1.7% EBITmargin 19.1 H1'17 Order intake continued to improve in Q2. Orders on hand significantly above prior year s level. Order intake (currency adjusted): Q2 +7.0% yoy H1 +6.2% yoy Net sales development still lagging behind order intake development. Gross profit margin: Q2 44.4% (-1.1pp yoy) H1 44.6% (+0.9pp yoy) Decline of Q2 margin mainly due to FX. Functional expenses ~ on prior year s level (excluding FX and restructuring charges 2016). No restructuring charges in H1 2017 (H1 2016 EUR 6.2m). 3
Order development in H1 Order entry ( million) Group Medical Safety Net Sales America 259 +6.6% +10.5% -1.4% +2.8% Africa, Asia, Australia 336 +6.6% +4.4% +13.0% -2.0% Europe 707 +5.9% +1.9% +11.9% -0.2% Group 1,302 +6.2% +4.4% +9.7% 0.0% Growth rates are net of currency effects 4
Business development H1 Group Q2 2016 Q2 2017 Change 6M 2016 6M 2017 Change million million % million million % Order Intake 621.4 662.7 6.6 1,221.1 1,302.0 6.6 % growth (FX adjusted) 0.9% 7.0% 0.5% 6.2% Net Sales 579.0 581.0 0.3 1,111.4 1,116.0 0.4 % growth (FX adjusted) -6.3% 1.0% -3.3% 0.0% Gross margin 45.5% 44.4% -1.1pp 43.8% 44.6% +0.9pp Functional Expenses -243.0-239.6 1.4-482.1-476.9 1.1 % of Net Sales -42.0% -41.2% -43.4% -42.7% EBIT 21.2 16.8-21.0 5.5 19.1 >100 EBIT Margin 3.7% 2.9% -0.8pp 0.5% 1.7% +1.2pp Interest Result -4.0-3.6 10.0-8.4-6.8 18.6 Net Profit 12.5 8.9-29.1-1.1 8.2 >100 DVA -39.4 64.5 >100 5
Functional Expenses 6M 2016 6M 2017 Change Change net of FX and restructuring million million % % R&D -109.9-111.9 1.7 1.7 % of Net Sales -9.9% -10.0% Sales & Marketing -268.5-272.0 1.3 0.7 % of Net Sales -24.2% -24.4% Administration -101.9-91.1-10.5-5.1 % of Net Sales -9.2% -8.2% SG&A -370.4-363.1-2.0-0.8 % of Net Sales -33.3% -32.5% Other operating income -1.9-1.9 Functional Expenses total -482.1-476.9-1.1-0.2 % of Net Sales -43.4% -42.7% Headcount 1 13,412 13,484 0.5 1 Values as of reporting date 6
Key Figures 6M 2016 6M 2017 million million Change % Cashflow from operating activities 42.4 31.2-26.3 Investments 49.3 42.1-14.6 Cash and cash equivalents 1 162.2 175.7 8.3 Net financial debt 1 150.6 41.8-72.3 Net financial debt 1 /EBITDA 2 1.12 0.18 Capital employed 1 1,259.2 1,229.9-2.3 ROCE (EBIT 2 /Capital employed 1 ) 3.9% 12.2% Net Working Capital 1 568.5 552.5-2.8 DVA -39.4 64.5 >100 1 Values as of reporting date 2 EBITDA and accordingly EBIT of the last twelve months 7
Business development H1 Segments Order entry Net sales Net sales EBIT EBITmargin Δ in %* million Δ in %* million % Europe 5,9 618,3-0,2 19,3 3,1 America 6,6 227,7 2,8-3,9-1,7 Africa, Asia, Australia 6,6 270,0-2,0 3,7 1,4 Group 6,2 1116,0 0,0 19,1 1,7 Medical 4,4 706,4-0,2-4,4-0,6 Safety 9,7 409,6 0,3 23,5 5,7 * net of currency effects 8
Outlook Net Sales (net of currency effects) 2016 2017e - 1.5 % 0.0 % 3.0 % EBIT margin 5.4 % 5.0 % 7.0 %* Gross profit margin 45.0 % 44.0 46.0 % Dräger Value Added EUR 49.8m EUR 40m 90m * based on exchange rates at the start of the year 2017 9
10 Questions & Answers
11 Appendix
Business development Segments Europa Amerika Afrika, Asien, Australien Dräger Konzern Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 million million million million million million million million Order entry 349.2 359.2 120.8 134.4 151.4 169.1 621.4 662.7 Net Sales 324.5 319.5 112.2 120.2 142.3 141.4 579.0 581.0 EBITDA 26.1 24.1 5.2 6.1 11.1 7.2 42.4 37.3 EBIT 15.6 14.2-0.2 0.8 5.8 1.7 21.2 16.8 EBIT-margin 4.8 4.5-0.2 0.6 4.1 1.2 3.7 2.9 Capital Employed 1 590.2 584.7 301.2 293.5 367.8 351.6 1,259.2 1,229.9 ROCE 1,2 8.3 16.0-6.8 5.2 5.7 11.8 3.9 12.2 DVA 7.4 54.1-40.5-5.7-6.4 16.1-39.4 64.5 1 Values at due date 2 EBIT of the last twelve months 12
Business development Segments Europa Amerika Afrika, Asien, Australien Dräger Konzern 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 million million million million million million million million Order entry 673.2 706.8 236.6 259.1 311.3 336.2 1,221.1 1,302.0 Net Sales 624.2 618.3 216.2 227.7 271.1 270.0 1,111.4 1,116.0 EBITDA 30.4 39.0 1.7 6.7 14.4 14.4 46.5 60.1 EBIT 10.3 19.3-9.0-3.9 4.2 3.7 5.5 19.1 EBIT-margin 1.6 3.1-4.1-1.7 1.6 1.4 0.5 1.7 Capital Employed 1 590.2 584.7 301.2 293.5 367.8 351.6 1,259.2 1,229.9 ROCE 1,2 8.3 16.0-6.8 5.2 5.7 11.8 3.9 12.2 DVA 7.4 54.1-40.5-5.7-6.4 16.1-39.4 64.5 1 Values at due date 2 EBIT of the last twelve months 13
Business development Medical Q2 2016 Q2 2017 Change Change 6M 2016 6M 2017 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry 417.3 435.7 4.4 4.5 800.7 841.0 5.0 4.4 Europe 221.6 216.8-2.1-2.0 408.3 414.7 1.6 1.9 America 83.2 97.7 17.4 16.5 159.9 181.4 13.4 10.5 Africa, Asia, Australia 112.5 121.2 7.7 8.5 232.5 244.8 5.3 4.4 Net Sales 365.9 370.0 1.1 1.7 704.1 706.4 0.3-0.2 Europe 185.7 187.1 0.8 1.4 358.6 361.8 0.9 1.4 America 79.5 81.4 2.4 2.3 148.7 150.2 1.0-1.3 Africa, Asia, Australia 100.8 101.5 0.7 1.8 196.8 194.3-1.3-2.4 EBIT 7.9 2.7-65.6-9.1-4.4 51.2 EBIT-margin 2.1 0.7-1.3-0.6
Business development Safety Q2 2016 Q2 2017 Change Change 6M 2016 6M 2017 Change Change million million % % (FX adj.) million million % % (FX adj.) Order entry 204.2 226.9 11.2 12.1 420.4 461.1 9.7 9.7 Europe 127.6 142.4 11.6 13.4 264.8 292.0 10.3 11.9 America 37.7 36.7-2.5-2.6 76.6 77.7 1.3-1.4 Africa, Asia, Australia 38.9 47.9 23.0 22.0 78.9 91.4 15.8 13.0 Net Sales 213.1 211.0-1.0-0.2 407.4 409.6 0.6 0.3 Europe 138.9 132.3-4.7-3.2 265.6 256.5-3.4-2.3 America 32.7 38.8 18.6 18.5 67.5 77.4 14.8 11.8 Africa, Asia, Australia 41.5 39.9-4.0-4.8 74.2 75.7 1.9-0.7 EBIT 13.4 14.1 5.3 14.6 23.5 60.7 EBIT-margin 6.3 6.7 3.6 5.7
Cash-flow statement 6M 2016 6M 2017 million million Group net profit -1.1 8.2 >100 Change in inventories -38.1-59.0-54.7 Change in receivables 122.7 133.8 9.1 Change in payables -31.1-23.7 23.9 Depreciation and amortization 40.9 41.0 0.2 Other operating cash flow items -50.9-69.2-35.8 Operating cash flow 42.4 31.2-26.3 Investing cash flow -42.2-29.5 30.1 Free cash flow 0.2 1.7 >100 Financing cash flow -9.8-41.9 >-100 Change in cash 1-9.6-40.2 >-100 Cash and cash equivalents 2 162.2 175.7 8.3 1 Change in cash and cash equivalents, i.e. without any effect of exchange rates 2 Values as of reporting date Change %
Earnings per share 2012 2013 2014 2015 2016 Net profit in thousand 135,680 119,895 104,666 33,288 81,736 Earnings attributable to non-controlling interests in thousand 3,319 563 105 287 345 Szenario: 100% distribution: pay-out ratio 100% 100% 100% 100% 100% Earnings attributable to participation certificates* in thousand 35,523 31,917 27,686 8,530 20,537 Earnings attributable to shareholders in thousand 96,838 87,415 77,085 25,044 60,855 Earnings per common share 5.84 5.24 4.52 1.40 3.40 Earnings per preferred share 5.90 5.30 4.58 1.46 3.46 Szenario: actual/proposed distribution pay-out ratio 15.1% 15.1% 30.1% 10.9% 4.5% Earnings attributable to participation certificates* in thousand 5,325 4,780 8,174 909 895 Earnings attributable to shareholders in thousand 127,036 114,553 96,598 32,665 80,496 Earnings per common share** 7.67 6.88 5.67 1.83 4.51 Earnings per preferred share** 7.73 6.94 5.73 1.89 4.57 * excluding minimum dividend, after taxes ** the EPS is not in accordance with IAS 33 17
Financial calendar 2017 March 8, 2017 - Accounts press conference, Lübeck - Analysts meeting May 4, 2017 - Report for the first three months 2017 Conference call, Lübeck May 10, 2017 - Annual shareholders' meeting, Lübeck July 27, 2017 - Report for the first six months 2017 Conference call, Lübeck November 2, 2017 - Report for the first nine months 2017 Conference call, Lübeck 18
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 19