Drägerwerk AG & Co. KGaA Analysts' Meeting Frankfurt, March 12, 2013

Transcription

1 Image H 9.4 cm x W cm Drägerwerk AG & Co. KGaA Analysts' Meeting Frankfurt, March 2, 203

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 Diversity at Dräger 3

4 Diversity at Dräger 4

5 Diversity at Dräger 5

6 Highlights Dräger Employee Stock Ownership Dräger will implement an employee stock ownership program to increase motivation and identification with the company. At the same time increase awareness and responsibility for a positive development of Dräger. Starting in Germany, employees will have the opportunity to receive one bonus share for each three purchased preference shares. Employees can purchase up to nine share packages of three shares each, a total of 27 shares. There will be a lock-up period of two years. Dräger does not distinguish between different employee groups. Apprentices can invest the same amount as top managers. It is intended to offer this program in at least 5 countries by

7 Highlights 202 New Marketing Approach - Examples for Segments Today s offering Hospital Gas Management Workplace Infrastructure Anesthesia Respiratory Care Warming Therapy Devices Patient Data Management Hospital Operating Room Possible future potential for Dräger broadening product portfolio supporting customer work flows with new offerings (e.g. ITintegration) Today s offering Stationary + portable gas detection systems Breathing air supply systems SCBA Escape devices and chambers Services including FRS Fire fighting equipment escape shelter Oil & Gas GDS hazmat handling confined space entry work FRS total care service on site integration of 3 rd party products providing concepts and consulting offering rental and financing solutions Complete Solution Provider 7

8 Highlights 202 Implementation of new Marketing Approach Focused Market Segments Application Driven Markets Hospital* IC OR NC HWS Oil & Gas Chemical Mining Fire Services Impairment Diving Steel Shipping more than 200 others Customers that use Dräger products along-side large parts of their value chain Customers that only use Dräger products in individual or low-attention applications Solution offerings involving various Dräger s product areas alongside the customers value chain Increase market penetration via new sales channels and marketing approaches Manage R&D process and product portfolio to increase customer satisfaction along value chain Improve capitalization of R&D investment Leverage existing product portfolio Complete Solution Provider Best of Breed Provider * OR = Operating Room, IC = Intensive Care, NC = Neonatal Care, HWS = Hospital wide solutions 8

9 Highlights 202 Sales & Service Reorganization of Sales & Service function One Global Head of Sales & Service. Board members taking cross-functional responsibility for a region on the board level. One Regional Head of Sales & Service for each of the seven regions; also responsible for the co-ordination of the regional cross-functional management team One Country Manager for each country Developing our business mechanics Project business gaining importance and organizational focus Above average growth of Service & Consumables business Professionalizing internal and external trainings through set up of Dräger Academy Improving global coverage and streamlining organization and infrastructure to achieve reduction of expense/net sales ratio by %-point until 204 Project Business, Accessories & Consumables and Services strengthen solution offerings towards our customers Positive effects on Sales and Dräger brand 9

10 Highlights 202 New Products and Projects - Examples Merlin Tablet PC Tunnel Rescue Train Perseus A500 0

11 Highlights Europe South Net Sales (in EUR m) -.2%* % Europe South * constant currency Dräger Robustness against crises Europe South: France, Spain, Italy, Portugal, Greece, Turkey, (Net Sales 4.8%) Basis for the small decline in sales 202, are the wide range of business mechanics Direct sale, products, systems Consumables Service spare parts Advanced service features and the wide range of product portfolio at Dräger.

12 Innovations 202 Initiative Achievements and following years New products in new products and system solutions for the hospital / Medical Division 4 new products and integration solutions for Safety Division Reduce time to market Measures initiated to reduce time to market in , enabled a reduction of project duration of 2.2 month in 202. Measures are sustainable. Protecting intellectual property Dräger registered 22 patents continuing the trend of protecting intellectual property within Dräger. Energetic measures started in China. Expansion of development sites in Emerging Countries 2

13 Strategic Initiatives Purchasing Supplier Quality Initiative Achievements 202 Implementing the Purchasing Strategy Integration of Strategic Suppliers Strategy developed and execution of the Dräger supplier portfolio: Consolidate supplier base Built stronger partnership with strategic suppliers Develope global sourcing further Enhancing staff in purchasing and supplier- QM 202 Savings * :, % of Sales Reduction Suppliers: 265 Quality Improvement: + 0,2 % *) Saving volume includes price changes vs. previous year and cost avoidance 3

14 Highlights Regions Asia / Pacific and Middle East / Africa Net Sales (in EUR m) +8.4%* %* Asia Pacific * constant currency Others Strong growth in Saudi Arabia including large Medical and Safety equipment and consumables orders for MOH and MOI Strengthen distribution channels in MEA (e.g. Draeger Maroc SARL AU, Olive Group as Draeger partner in Iraq) Expanding project / solutions business in MEA and AP (Shutdown & Rental in Bahrain, Fire Training Simulator in Australia) Laying of the foundation stone for the new production plant in Shanghai 4

15 Shaping the future Operations Initiatives Achievements Effects Global Organization & Processes Design Global Footprint Optimize Value Chain Regional Operations organization introduced SCOR model implemented and common process landscape defined Transfer of labor-intensive products from Lübeck to Chomutov decided Transfer of manufacturing from Bern to Shanghai and Lübeck started Ground breaking ceremony for building extension in Shanghai Pilot project for optimizing local value add activities in France started Distribution network optimized further (e.g. spare parts, Mexico) Leverage potential in growing markets Fulfill country-specific customer requirements Increase efficiency 5

16 Shaping the future IT Organization & Processes Initiatives Achievements Effects Harmonization & Consolidation of Infrastructure Implementation of a global ERP template DW More than 50% of all end user devices renewed ERP relevant business processes, especially order fulfillment process harmonized Global roll-out planned Productivity improvement for all users Complexity reduction through standardization Increased transparency Organizational development Global IT and process experts merged to a joint organization 6

17 Highlights Region America Net Sales (in EUR m) -0.4%* NOE (in EUR m) -0.7%* America * constant currency America New Headquarter for Central-/South- America in Panama City Start of sale of IP product range in the US under Dräger brand name Minimal downtime of production after hurricane Sandy Strong growth in South America despite difficult business environment due to political events Good market acceptance in the US of last years launched V500 and VN 500 7

18 Business development Order intake Orders on hand Net sales Gross margin Q4 20 million % Q4 202 Change million % % million million % 2, , , % Change EBITDA , % EBIT EBIT margin % % % % +7.4 Interest Result Tax rate Net Profit DVA after interest & income taxes % % Currency adjusted: Q4 202: order intake +2.2%, net sales +2.7% 202: order intake +2.2%, orders on hand +5.0%, net sales +2.5% 8

19 Business development Medical division Q4 20 Q4 202 Change Change million million % million million % Order intake Orders on hand Net sales ,58.8,558.4,484.5, EBITDA EBIT EBIT margin % % % % -3.5 DVA Currency adjusted: Q4 202: order intake +.%, net sales +0.4% 202: order intake 0.0%, orders on hand -2.4%, net sales +2.3% 9

20 Business development Safety division Q4 20 Q4 202 Change Change million million % million million % Order intake Orders on hand Net sales EBITDA , EBIT EBIT margin % % % % DVA Currency adjusted: Q4 202: order intake +4.6%, net sales +7.6% 202: order intake +6.8%, orders on hand +2.5%, net sales +3.2% 20

21 Key figures Change million million % Cash flow from operating activities Investments Cash and cash equivalents Net financial debt 39.8 Net financial debt /EBITDA Capital employed ROCE % % +2.4 Net working capital EPS common shares EPS preferred shares EPS common shares on full distribution EPS preferred shares on full distribution Values at due date 2 EBITDA and accordingly EBIT of the last twelve months

22 Functional expenses Q4 20 Q4 202 Change Change million million % million million % Research and development costs in % of net sales 6.5 % 7.2 % 7. % 8.3 % Marketing and selling expenses in % of net sales 22.9 % 2.7 % 25.5 % 25. % General administrative expenses in % of net sales 7.0 % 6.0 % 6.6 % 5.9 % 22

23 Consolidated balance sheet Assets 3 Dec 20 3 Dec 202 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,425.0, Total assets 2,5.2 2,

24 Consolidated balance sheet Equity and liabilities 3 Dec 20 3 Dec 202 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 2,5.2 2, Adjusted values 24

25 Cash flow statement Operating activities Investing activities Financing activities Change in cash Without effects of exchange rates on cash and cash equivalents 2 adjusted values

26 Dividend proposal 202 Net profit Earnings attributable to non-controlling interests Net profit after earnings attributable to non-controlling interests Dividend - Participation certificates - Common shares - Preferred shares 3 Dec 20 million Dec 202 million Net payout ratio Gross payout ratio 3.3 % Plus minimum dividend and tax effect of the participation certificates. 4.3 % 5. % % Without minimum dividend, after taxes 26

27 Outlook and mid-term perspective Midterm 208 Net sales +5.2 % (currency adjusted +2.5 %) 2.0 % % CAGR > 4 % EBIT margin 9.7 % 8.0 % % 0.0 % % Gross Margin 49.2 % 48.5 % % Cash flow conversion 77 % of EBIT 70 % - 85 % of EBIT Equity ratio 34.6 % 35 % 38 % 27

28 Levers for achieving midterm targets Net Sales growing > 4 % Continued investment in R&D offers potential to grow market share Over-proportional growth in Emerging markets New Marketing organization provides potential to increase penetration of existing markets and expand currently accessible markets Implementation of new CRM System supports Sales EBIT Margin improvement to 0.0 % 2.0 % Over-proportional growth in service- and consumables business Continued investment in R&D offers potential for more profitable products Synergies through new global Sales & Service organization Continued optimization of Dräger s supply chain Implementation of new ERP System supports steering of business 28

29 Diversity at Dräger 29

30 30 Appendix

31 Executive Board Executive Board of Drägerwerk Verwaltungs AG Stefan Dräger CEO Dr. Herbert Fehrecke CTO Gert-Hartwig Lescow CFO Toni Schrofner COO 3

32 Shareholder structure 0,60,000 common shares (28.6 % free float) 6,350,000 preferred shares (00.0 % free float) Shareholding Common shares Shareholding Dr. Heinrich Dräger GmbH 28.6 % 4.2 % 8. % 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 32

33 Financial calendar March 2, 202 Accounts press conference, Hamburg Analysts meeting, Frankfurt May 2, 202 Report for the first three months 203 Conference call, Lübeck May 3, 202 Annual shareholders meeting, Lübeck August, 202 Report for the first six months 203 Conference call, Lübeck October 3, 202 Report for the first nine months 203 Conference call, Lübeck 33

34 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 melanie.kamann@draeger.com thomas.fischler@draeger.com 34