WELCOME PRESENTATION DÜRR INVESTOR RELATIONS. March 2015

Transcription

1 WELCOME PRESENTATION DÜRR INVESTOR RELATIONS March

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, March

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, March

4 DÜRR: GLOBAL LEADER IN STRONG COMPETITIVE POSITION Customers Fast facts World market leader in 95% of Dürr s business portfolio with a market share between approx % 65% 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 installed base & customer excellence (service) Dürr AG, CCI, Investor Relations, March

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: 253 m EBIT 2 : -7,9 m EBIT margin 2 : -3.3% ROCE 2 : -1.8% ( 2 including PPA costs of 16.5 m) Dürr AG, CCI, Investor Relations, March

6 ORDER INTAKE: GLOBALLY BALANCED Incoming orders 2014 (2013) Incoming orders 2014 (2013) Sales revenues 2014 (2013) 31.4% (27.3%) 14.7% (13.5%) 28.0% (31.7%) 15.2% (15.8%) Mature markets Emerging markets 1) 43% (46%) 57% (54%) 4.2% (4.8%) 30.7% (23.7%) 6.1% (7.0%) 26.9% (27.2%) 1) Asia (w/o Japan), Mexico, Brazil, Eastern Europe Emerging markets account for 57% of order intake Strong order intake in Europe and China Dürr AG, CCI, Investor Relations, March % (30.7%) 23.8% (18.3%) Germany Rest of Europe incl. Eastern Europe North and South America Asia (w/o China), Africa, Australia China 6

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, March

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

9 STRONG EMERGING MARKETS GROWTH India, China, South East Asia and Brazil with expected automotive production growth > 7% Emerging markets will contribute 2/3 of global growth between 2014 and 2019 CAGR in % in m units Americas Europe Asia (w/o China) China Others Source: own estimates, PwC Last update: January 2015 Dürr AG, CCI, Investor Relations, March

10 FURNITURE MARKET Furniture industry: focus on China in USD bn 500 Furniture consumption CAGR: 5% Percentage breakdown of furniture industry worldwide (2013) % 44% China India Poland Brazil % 5% USA Germany Italy 0 10% 2% 2% 3% Others China most important global market Source: Center of Industrial Studies, Csil Dürr AG, CCI, Investor Relations, March

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, March

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

13 INNOVATION LEADING IN PRODUCTION EFFICIENCY 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, March

14 INNOVATION EXAMPLES ACROSS ALL BUSINESSES EcoDryScrubber dry overspray separation EcoRPL033 painting robot EcoCSteam cleaning with steam EcoReBooth paint booth concept lasertec new era in wood edge processing Balancing Technology e.g. for turbochargers Dürr AG, CCI, Investor Relations, March

15 GLOBALIZATION ADDRESSING NEW MARKETS 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 2-component systems 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 Graco 23% Competition Iwata 7% Finishing Brands 8% Others 31% Nordson 31% Dürr AG, CCI, Investor Relations, March

16 GLOBALIZATION FOCUS ON EMERGING MARKETS 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, March

17 DÜRR SERVICE GROWTH STRATEGY Service revenues (in m) In % of group revenues Service type in % of revenues Maintenance, assessments, seminars 15% Spare parts and repairs 34% Modifications and upgrades 51% 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 HOMAG s service share of 19% to be improved Long-term target: 27% sales share Dürr AG, CCI, Investor Relations, March

18 DÜRR SERVICE GROWTH STRATEGY Number of paint robots sold (cumulative figure) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Dürr AG, CCI, Investor Relations, March

19 DÜRR SERVICE GROWTH STRATEGY Module Customer Experience : Improvement interaction with customers Module Service Excellence : Improvement + extension service business Worldwide program Best in Class for all contact points with the customer Strengthening customer orientation, enhancing customer loyalty Developing instruments for regular measurement of customer satisfaction Consistent service orientation: sales, proposals, operations, aftersales Capacity increase in service business Profitable growth in service business Further improvement in customer relationships and push of service business Dürr AG, CCI, Investor Relations, March

20 DÜRR SERVICE GROWTH STRATEGY Increasing potential due to ageing plant structure Expanding modernization business Age of paint shops (based on own calculations) 80% 70% 60% 50% 40% 30% 20% 10% 0% 75% 17% North America 8% 71% 25% South America 4% 67% 7% 26% 62% 19% 19% 39% 34% Russia EU Asia >20 years years <10 years ~250 paint shops in the world are older than 20 years 27% Dürr AG, CCI, Investor Relations, March

21 EFFICIENCY Global processes as a basis for profitability Global processes / localization Further globalization of Dürr processes Global processes with full utilization of SAP/CAX/CRM/SharePoint Strengthening of engineering center in India 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, March

22 EFFICIENCY Global IT platforms: connected worldwide Integrated Systems Enterprise Resource Planning CAX Reporting SharePoint CRM Project management software Dürr Projects Meeting Management Approx. 30 m invested A single database worldwide Efficient cooperation in all locations Efficient controlling and timing of capacities Continuous capex spending necessary Quality Management Information Management Projects Milestone Checklists Change Management Site Management Dürr AG, CCI, Investor Relations, March

23 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 earnings from 2015; consolidation in Q HOMAG shares remain listed Domination and profit & loss transfer agreement implemented on March 5, 2015 HOMAG Group Financials in m Incoming orders Sales EBIT ) Net profit shareholders (without non-controlling interests) Operating cash flow ) after employee participation and extraordinary costs of 14.3 m Dürr AG, CCI, Investor Relations, March

24 TAKEOVER OF HOMAG GROUP Business activity Located in Schopfloch, Germany World market leader in woodworking machinery and systems used in the wood-based panel-processing furniture, construction supplies and timber home construction industries. Customers produce home and office furniture, kitchens, parquet and laminate flooring, windows, doors, stairs and also complete wooden house construction systems. The biggest customer is IKEA. 30% market share International group with 37 locations worldwide; ~ 20% of sales revenues in Germany 5,650 employees worldwide, thereof approx. 3,900 in Germany Solidly financed, equity ratio at 32%; net financial debt at 29 m Clear improvement in operating results in recent years, EBIT margin in 2014 at 4.0% 1) 1) incl. extraordinary costs e.g. PPA costs Stiles takeover Dürr AG, CCI, Investor Relations, March

25 TAKEOVER OF HOMAG GROUP Optimal addition to Dürr s portfolio Target areas: mechanical and plant engineering, automation technology, measuring systems, environmental business World market leadership, innovation leader Market niches without major players & no major Chinese players No restructuring cases but acquisition targets with earnings improvement potential Globalization/localization in emerging markets, making use of Dürr s excellent positioning in these markets Operational improvements (e.g. processes, best practice, tools) and synergies (e.g. R&D, purchasing, sales, service) Dürr AG, CCI, Investor Relations, March

26 TAKEOVER OF HOMAG GROUP Substantial value increase expected Optimization measures initiated at HOMAG Group will be continued and supported Globalization of value added Further optimization and synergy opportunities (examples): Process improvements Global IT structures Purchasing Financing Technologies/products (e.g. automation/robotics) Earnings increase at HOMAG Group will continue Dürr AG, CCI, Investor Relations, March

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

28 STRONG EARNINGS Margins at record level in m /2013 in % Incoming orders 2, , , Sales revenues 2, , , Orders on hand (end of period) 2, , , Gross profit on sales Gross margin (%) ppt EBIT EBIT margin (%) ppt Net income Dürr AG, CCI, Investor Relations, March

29 CASH FLOW Strong cash generation in the last years in m EBT Depreciation and amortization Interest result Income taxes paid Changes Provisions Net working capital Other Cash flow from operating activities Interest paid (net) Capital expenditures Free cash flow Dürr AG, CCI, Investor Relations, March

30 SOLID FINANCIAL STRUCTURE 12/31/ /31/ /31/ /31/2014 Equity in m Equity ratio in % Net financial status in m Net working capital in m DWC (days working capital) ROCE in % Total cash including time deposits, bonds etc. at 582 m (12/31/2013: 547 m) Net cash positive even after HOMAG acquisition Equity up by m compared to 12/31/2013 Dürr AG, CCI, Investor Relations, March

31 ROCE CLEARLY ABOVE COST OF CAPITAL EBIT in m Capital employed in m NWC in m DWC ROCE in % Dürr business model favors low capital employed ROCE in % CE turnover Strong focus on NWC management : CE of HOMAG fully included but only ¼ of results Dürr AG, CCI, Investor Relations, March

32 OUTLOOK 2015 in m 3,500 3,400-3,500 3,200-3,500 in % 25 3,250 3,000 2,750 2, Sales 2,250 2,000 1,750 1,500 1,250 1, Incoming orders Gross margin (in %) EBIT margin (in %) Dürr AG, CCI, Investor Relations, March

33 SUMMARY Strong market conditions, positioning for further growth Ongoing demand, full order pipeline, numerous new projects are coming to the market (e.g. China & North America) Positioning 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 with first success Cost containment, global processes, localization Solid financial structure, fully funded until 2021 HOMAG takeover will contribute positively to Dürr s earnings after financing costs; strong sales & earnings increase in 2015 Dürr AG, CCI, Investor Relations, March

34 FINANCIAL CALENDAR 03/31/2015 Publication annual report /05/ th Annual Goldman Sachs Small & Mid Cap Symposium 05/12/2015 Interim report for the first quarter of /12/2015 Investor Conference at LIGNA fair, Hannover 05/15/2015 Annual general meeting, Bietigheim-Bissingen 05/19/2015 UBS Pan European Small and Midcap Conference 07/30/2015 Interim financial report for the first half of 2015 Contact Dürr Aktiengesellschaft Corporate Communications & Investor Relations Günter Dielmann / Stefan Burkhardt Carl-Benz-Str Bietigheim-Bissingen Germany Phone: /-3558 Telefax: investor.relations@durr.com Dürr AG, CCI, Investor Relations, March

35 Appendix Dürr AG, CCI, Investor Relations, March

36 OVERVIEW: HOMAG CONSOLIDATION EFFECTS (IFRS) in m e 2016e PPA Thereof depreciation & amortisation (-5.6) (-12.3) (-8.7) Financial result impact Total EBT-effect Assumptions: Domination and profit & loss transfer agreement will be implemented in 2015/2016 Appraisal rights proceedings will be initiated but 100% of HOMAG earnings belong to Dürr; no HOMAG minorities any longer cash outflow 8 m p.a. Dürr AG, CCI, Investor Relations, March

37 SHAREHOLDER STRUCTURE / DIVIDEND POLICY Free float at 71.3% Shareholder structure (as of February 2015)* 25.2% Heinz Dürr GmbH, Berlin 3.5% Heinz und Heide Dürr Stiftung, Berlin 71.3% Institutional and private investors Dividend policy: 30-40% payout ratio * figures rounded Dürr AG, CCI, Investor Relations, March

38 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, March

39 SALES DEVELOPMENT PASSENGER CARS JANUARY-DECEMBER 2014/13 Change year-on-year in % New EU countries China USA Western Europe Japan Germany India Brazil Russia Source: The German Association of the Automotive Industry (VDA); January 2015 Dürr AG, CCI, Investor Relations, March