Conference Call: Interim Report January 1 to September 30, 2012

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  • 1. WELCOME DÜRR AKTIENGESELLSCHAFT CONFERENCE CALL RESULTS JAN.– SEPT. / Q3 2012 Ralf W. Dieter, CEO Ralph Heuwing, CFO Bietigheim-Bissingen, November 6, 2012 www.durr.com
  • 2. DISCLAIMERThis presentation has been prepared independently by Dürr AG (“Dürr”).The presentation contains statements which address such key issues as Dürr´s strategy, future financialresults, 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 fromthese 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 andlegislative issues, fiscal, and other regulatory measures. Stated competitive positions are based onmanagement estimates supported by information provided by specialized external agencies.© Dürr AG, CCI, CC Q3, November 6, 2012 2
  • 3. BOOK TO BILL RATIO AT 1.1 9 months 9 months €m Q3 2011 Q3 2012 2011 2012 Incoming orders 2,066.5 1,954.3 -5.4% 866.0 550.0 -36.5% Sales revenues 1,307.3 1,757.5 34.4% 523.8 594.2 13.4% Orders on hand (09/30) 2,122.2 2,332.1 9.9% 2,122.2 2,332.1 9.9% Incoming orders development as expected, decrease in Application Technology and Cleaning Filtration only Project pipeline continues to be strong despite weaker macro-economic situation Continued sales increase in Q3 Order backlog secures utilization well until first half of 2014© Dürr AG, CCI, CC Q3, November 6, 2012 3
  • 4. Q3 ORDER INTAKE LEVEL ACCORDING TOPLAN€m 866 900 29 800 725 679 643 189 618 35 700 28 541 557 35 17 550 Clean 600 175 Technology 26 21 182 160 16 Systems 159 149 500 364 141 Measuring and 362 375 144 165 137 Process 339 166 400 13 22 17 116 Systems 18 155 97 104 300 101 100 127 Application 80 152 466 Technology 200 78 69 83 336 379 65 294 325 289 275 244 100 Paint and 162 179 169 130 Assembly Systems 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012© Dürr AG, CCI, CC Q3, November 6, 2012 4
  • 5. INCOMING ORDERS:9 MONTHS 2012 VS. 9 MONTHS 2011€m2,500 -5%2,000 Strong European business China catches up in Q3 9 months 2011 9 months 20121,500 -33%1,000 +32% -5% +44% 500 -47% 0 Total China America Germany Europe w/o Asia (w/o China), Germany Africa, Australia© Dürr AG, CCI, CC Q3, November 6, 2012 5
  • 6. ORDER INTAKE: HEALTHY REGIONAL SPLITRolling 12 months comparison Incoming orders Incoming orders Sales revenues rolling 12 months rolling 12 months rolling 12 months 2012 (2011) 2012 (2011) 2012 (2011) 12.2% 23.3% 16.5% (17.0%) (38.2%) (11.8%) 32.0% Mature (27.3%) markets Emerging markets * 23.1% 59% 7.3% (25.8%) 47% (57%) (7.8%) 28.6% (35%) 53% (65%) (21.6%) 7.4% (9.2%) 24.3% 25.3% (20.6%) (20.7%) Germany* Asia (ex Japan), Mexico, Brazil, Eastern Europe Rest of Europe incl. Eastern Europe Emerging markets share above 50% North and South America Asia (ex China), Africa, Australia China still most important single market China© Dürr AG, CCI, CC Q3, November 6, 2012 6
  • 7. NET INCOME DOUBLED DUE TO STRONGSALES AND MODERATE SG&A INCREASE 9 months 9 months €m Q3 2011 Q3 2012 2011 2012 Gross profit on sales 228.8 311.0 35.9% 88.4 112.9 27.7% EBITDA 78.4 138.6 76.8% 35.0 53.5 52.9% EBIT 63.5 118.9 87.2% 29.6 46.5 57.1% Net income 34.6 71.3 106.1% 18.6 27.3 46.8% Q3 gross margin increases to 19.0% due to high utilization and better order mix (Q1: 16.4%/Q2: 17.6%) Moderate increase of SG&A costs (+20%) well below sales increase Q3 EBIT margin at 7.8% Financial result weaker at € -23.2 m (€ -15.1 m) due to inclusion of Campus refinancing and one time costs (€ 5.3 m)© Dürr AG, CCI, CC Q3, November 6, 2012 7
  • 8. TEMPORARY INCREASE IN NWCCash flow/free cash flow 9 months 9 months Q3 Q3 €m 2011 2012 2011 2012 EBT 48.4 95.7 24.7 36.2 Depreciation and amortization of non-current assets 14.9 19.8 5.4 6.9 Interest result 15.5 23.5 5.0 10.4 Income taxes paid -7.3 -13.2 -3.0 -4.4 Provisions 2.3 -10.4 2.7 4.8 Net working capital -48.2 -147.6 -15.0 -27.6 Other 2.6 13.8 33.5 20.0 Cash flow from operating activities 28.2 -18.4 53.3 46.3 Interest paid (net) -20.5 -19.7 -20.3 -17.6 Capital expenditures -12.4 -21.1 -4.4 -6.0 Free cash flow -4.7 -59.2 28.6 22.7 Strong cash flow improvement in Q3, NWC reduction expected in Q4© Dürr AG, CCI, CC Q3, November 6, 2012 8
  • 9. NWC: INCREASE ALONG WITH BUSINESSEXPANSION 09/30/2011 12/31/2011 09/30/2012 NWC in € m 77.3 32.6 177.7 DWC (Days Working Capital) 16.0 6.1 27.3 DSO (Days Sales Outstanding) 126.8 117.2 115.7 DWC expected to be back in target range (20-25 days) at year end 2012© Dürr AG, CCI, CC Q3, November 6, 2012 9
  • 10. WIP AND PROGRESS BILLINGSWIP approaches normalized range of +/- € 50 m €m 09/30/2011 12/31/2011 09/30/2012 Assets Work in process from contracts (WIP) 922.2 936.8 1,479.5 Progress billings -606.2 -639.2 -1,092.01 WIP in excess of billings 316.0 297.6 387.5 Liabilities Work in process from contracts (WIP) -937.2 -1.221.9 -1,261.9 Progress billings 1,371.5 1,650.1 1,713.22 Billings in excess of WIP 434.3 428.2 451.3 Machinery business WIP -20.7 -23.1 -34.03 Progress billings 18.4 18.6 33.04 Billings in excess of WIP -2.3 -4.5 -1.0© Dürr AG, CCI, CC Q3, November 6, 2012 10
  • 11. WIP AND PROGRESS BILLINGS €m 09/30/2011 12/31/2011 09/30/2012 Balance: total WIP less total progress billings 1 - 2 - 4 -116.0 -126.1 -62.8 Prepayments (liabilities) 2 + 3 452.7 446.8 484.3 Progress billings were € 63m higher than future receivables1) on September 30, 2012 This will lead to a future cash outflow of € 63m However, cash flow should benefit from higher earnings/revenues 1) These future receivables are not included in trade receivables© Dürr AG, CCI, CC Q3, November 6, 2012 11
  • 12. STRONG ROCE DESPITE HIGH NWC LEVEL €m 09/30/2011 12/31/2011 09/30/2012 Equity in € m 341.0 364.3 411.3 Equity ratio in % 22.7 21.9 23.5 Net financial status in € m 0.9 51.8 -25.8 Cash in € m 235.0 298.6 249.7 Gearing in % -0.3 -16.6 5.9 ROCE1) in % 21.3 28.4 32.1 Equity ratio expected to increase during the next quarters Positive net financial status expected at FY end 1) annualized© Dürr AG, CCI, CC Q3, November 6, 2012 12
  • 13. ROCE CLEARLY ABOVE COST OF CAPITAL 9 months 2006 2007 2008 2009 2010 2011 2012 EBIT in € m 33.1 55.7 72.7 5.7 36.6 106.5 118.9 Capital employed in € m 420.1 378.8 432.1 356.3 356.7 374.8 494.1 NWC in € m 154.7 128.9 151.8 57.4 27.3 32.6 177.7 DWC 40.9 31.4 34.1 19.2 7.8 6.1 27.3 ROCE in % 7.9 14.7 16.8 1.6 10.3 28.4 32.11) ROCE in % CE turnover Dürr’s business model favors low capital 35 6 employed 30 5 25 4 20 Strong focus on NWC management 15 3 10 2 Only slight CE increase since 2006 5 1 despite strong business expansion 0 0 2006 2007 2008 2009 2010 2011 2012e 1) annualized© Dürr AG, CCI, CC Q3, November 6, 2012 13
  • 14. PAINT AND ASSEMBLY SYSTEMS:INCOMING ORDERS ON 2011 RECORD LEVEL 9 months 9 months €m 2011 2012 Incoming orders 1,004.3 992.8 -1.1% Sales revenues 580.9 810.5 39.5% EBIT 26.1 49.1 88.1% Book to bill ratio at 1.2 EBIT margin at record high in Q3 2012 (7.0%)© Dürr AG, CCI, CC Q3, November 6, 2012 14
  • 15. APPLICATION TECHNOLOGY:STRONG EBIT DEVELOPMENT 9 months 9 months €m 2011 2012 Incoming orders 464.7 406.8 -12.5% Sales revenues 281.3 396.7 41.0% EBIT 14.9 37.2 149.7% Q3 incoming orders should have bottomed out, strong pipeline in brownfield projects Good earnings improvement due to high utilization and improved margin realization, EBIT margin reached 9.2% in Q3© Dürr AG, CCI, CC Q3, November 6, 2012 15
  • 16. MEASURING AND PROCESS SYSTEMS:CONTINUED EARNINGS MOMENTUM 9 months 9 months €m 2011 2012 Incoming orders 513.4 475.8 -7.3% Sales revenues 388.0 482.8 24.4% EBIT 22.2 40.4 82.0% Normalized order intake level in Q3, selective order intake in Cleaning and Filtration Incoming orders at Balancing and Assembly Products +15% Earnings improvement in both business units; EBIT margin reaches 11.1% in Q3© Dürr AG, CCI, CC Q3, November 6, 2012 16
  • 17. CLEAN TECHNOLOGY SYSTEMS:BOOK TO BILL RATIO AT 1.2 9 months 9 months €m 2011 2012 Incoming orders 84.0 78.9 -6.1% Sales revenues 57.1 67.5 18.2% EBIT 3.0 1.9 -36.7% Order intake temporarily weaker in Q3; several VAM-RTO in the pipeline, higher order intake expected in Q4 EBIT margin at 5.5% in Q3 despite expansion costs in energy efficiency business© Dürr AG, CCI, CC Q3, November 6, 2012 17
  • 18. EXPANDING SERVICE BUSINESS 9 months 9 months 2008 2009 2010 2011 2011 2012 Sales revenues in € m 395.9 263.3 362.0 445.4 314.0 362.6 Sales revenue in % of group sales 24.7 24.4 28.7 23.2 24.0 20.6Example Application Technology: Number of paint robots in the installed base80007000600050004000300020001000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e© Dürr AG, CCI, CC Q3, November 6, 2012 18
  • 19. LARGE SERVICE POTENTIAL IN THEEMERGING MARKETSService in % of total sales by country25201510 5 0 China India Russia Brazil Mexico Group© Dürr AG, CCI, CC Q3, November 6, 2012 19
  • 20. MARKET: STRONG PASSENGER CAR SALESSeptember 2012/2011Change year-over-year in % Japan 42 USA 15 Russia 14 India 10 China 9 Brazil 6new EU countries 0 Germany -2 Western Europe -8 -10 0 10 20 30 40 50 60 Source: VDA (German carmakers´ association)© Dürr AG, CCI, CC Q3, November 6, 2012 20
  • 21. CONTINUED STRONG EMERGING MARKETSGROWTH EXPECTED Emerging markets contribute 90% to worldwide automobile production growth 2011-2016 CAGR in %m units 99.8 95.3110 90.0 83.9 2.9 3.0100 79.2 2.8 2.7 90 74.6 2.6 2.4 24.7 10.0 80 2.5 23.1 21.1 70 16.5 18.9 15.3 60 24.6 25.4 5.3 23.9 50 19.6 21.6 22.5 40 20.9 22.1 23.2 3.1 30 19.9 19.2 19.7 20 10 17.3 19.5 20.2 21.4 22.7 23.6 6.4 0 2011 2012 2013 2014 2015 2016 Source: PwC America Europe Asia (without China) China other Last update: October 2012© Dürr AG, CCI, CC Q3, November 6, 2012 21
  • 22. OUTLOOK: ON THE WAY TO 7% EBIT MARGINOngoing growth and profit improvement expected >2,300 2,685 Sales in € m Incoming orders in € m 2,500 1,922 1,782 1,642 1,261 1,460 1,464 1,078 1,217 1,185 2009 2010 2011 2012e 2005 2006 2007 2008 2009 2010 2011 2012e 6.5 - 7% EBIT margin (EBIT in € m) 5.5% (106.5) 2.9% 0.5% (36.6) (5.7) 2009 2010 2011 2012e© Dürr AG, CCI, CC Q3, November 6, 2012 22
  • 23. SUMMARY 9 months within expectations, EBIT margin reached 7.8% in Q3 Positive long term market outlook despite current macro-economic slowdown Healthy project pipeline, no signs for a deterioration of business Positive 2012 outlook supported by order backlog, incoming orders and project pipeline. Margin goal of 6.5 - 7% within reach and conservative© Dürr AG, CCI, CC Q3, November 6, 2012 23
  • 24. FINANCIAL CALENDAR11/13/12 - 11/14/12 UBS Conference, London12/04/12 - 12/07/12 Berenberg Conference, Pennyhill01/14/13 - 01/16/13 Commerzbank German Investment Seminar, New York01/22/13 German Corporate Conference by Cheuvreux, FrankfurtContact: Dürr Aktiengesellschaft Günter Dielmann Corporate Communications & Investor Relations Carl-Benz-Str. 34 74321 Bietigheim-Bissingen Germany Phone +49 7142 78-1785 E-Mail investor.relations@durr.com© Dürr AG, CCI, CC Q3, November 6, 2012 24
  • 25. DÜRR AKTIENGESELLSCHAFTCONFERENCE CALLRESULTS JAN.– SEPT. / Q3 2012Ralf W. Dieter, CEORalph Heuwing, CFOBietigheim-Bissingen, November 6, 2012 www.durr.com