CONFERENCE CALL RESULTS JANUARY – JUNE 2013

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CONFERENCE CALL RESULTS JANUARY – JUNE 2013

  1. 1. www.durr.comwww.durr.com CONFERENCE CALL RESULTS JANUARY – JUNE 2013 DÜRR AKTIENGESELLSCHAFT Bietigheim-Bissingen, August 1, 2013 WELCOME Ralf W. Dieter, CEO Ralph Heuwing, CFO
  2. 2. DISCLAIMER This 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 might 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. 2© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
  3. 3. PROJECT PIPELINE LOOKS STRONG FOR Q4 2013/Q1 2014 3 Book-to-bill at 1.14 Slight sales shortfall due to temporary effects: project execution phases Orders on hand at around one year‘s sales © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Incoming orders 1,293.5 1,404.3 -7.9% 613.1 725.2 -15.5% Sales revenues 1,131.7 1,163.3 -2.7% 589.2 600.9 -1.9% Orders on hand (06/30) 2,457.5 2,386.5 3.0% 2,457.5 2,386.5 3.0%
  4. 4. 4 INCOMING ORDERS REACHED AN AVERAGE OF € 622 M IN THE LAST 4 QUARTERS © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 in € m 162 179 169 130 274 244 294 466 337 325 378 289 333 324 302 78 69 83 65 97 127 155 182 116 166 137 104 150 182 144 81 101 101 152 144 165 159 189 149 160 175 141 125 146 138 18 13 22 17 26 21 35 29 17 28 35 16 35 28 29 0 100 200 300 400 500 600 700 800 900 1,000 Q 4 2009 Q 1 2010 Q 2 2010 Q 3 2010 Q 4 2010 Q 1 2011 Q 2 2011 Q 3 2011 Q 4 2011 Q 1 2012 Q 2 2012 Q 3 2012 Q 4 2012 Q 1 2013 Q 2 2013 Clean Technology Systems Measuring and Process Systems Application Technology Paint and Assembly Systems 339 362 375 364 557 643 541 866 619 679 725 550 643 680 613
  5. 5. 5 INCOMING ORDERS JANUARY – JUNE 2013 VS. 2012 © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 1,404.3 291.4 318.8 262.8 460.0 71.3 1,293.5 477.3 302.3 145.5 301.4 67.0 0 200 400 600 800 1,000 1,200 1,400 1,600 Total China America Germany Europe w/o Germany Asia (w/o China), Africa 2012 2013 -8% +64% -5% -45% -34% -6% in € m Strong EM business (e.g. China, Brazil) North America catches up Germany and Europe weak as expected
  6. 6. H1: GROSS MARGIN IMPROVEMENT DRIVES EARNINGS INCREASE 6© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 Gross margin at 19.4% in H1 2013 (H1 2012: 17.0%) Moderate increase of SG&A costs: +5.8% EBIT margin reached 7.9% in Q2 2013 (Q2 2012: 7.1%) in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Gross profit on sales 219.9 198.1 11.0% 117.8 105.8 11.3% EBITDA 95.9 85.2 12.6% 53.7 49.7 8.0% EBIT 82.4 72.3 14.0% 46.4 42.7 8.7% Net income 52.4 44.0 19.1% 29.7 26.8 10.8%
  7. 7. STRONG CASH FLOW IMPROVEMENT OF € 87.7 M IN Q2 7© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 in € m H1 2013 H1 2012 Q2 2013 Q2 2012 EBT 72.2 59.5 40.9 36.1 Depreciation and amortization of non-current assets 13.5 12.8 7.4 6.9 Interest result 10.5 13.1 5.7 6.9 Income taxes paid -16.3 -8.8 -13.6 -6.0 Provisions 9.6 -15.2 3.3 0.8 Net working capital -53.6 -120.0 20.2 -91.6 Other -23.8 -6.0 -22.1 1.0 Cash flow from operating activities 12.1 -64.6 41.8 -45.9 Interest paid (net) -0.7 -2.1 -0.1 -1.1 Capital expenditures -21.7 -15.0 -13.9 -10.2 Free cash flow -10.3 -81.7 27.8 -57.2
  8. 8. NWC IN Q2: DECREASE OF € 23 M VERSUS Q1 AS EXPECTED 8 NWC => Further decrease during H2 realistic DWC => Already within the target range of 20 to 25 days © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 06/30/2013 03/31/2013 12/31/2012 06/30/2012 NWC in € m 153.2 176.4 98.6 151.2 DWC (Days Working Capital) 24.4 29.3 14.8 23.4 DSO (Days Sales Outstanding) 119.9 128.4 104.3 119.4
  9. 9. WIP AND PROGRESS BILLINGS: ONGOING IMPROVEMENT OF NEGATIVE WIP BALANCE 9© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 1 2 3 4 1 2 4 2 3 - - + in € m 06/30/2013 12/31/2012 06/30/2012 Assets WIP in excess of billings 411.8 349.1 375.2 Liabilities Work in process from contracts (WIP) -995.7 -1,200.6 -1,262.7 Progress billings 1,479.2 1,654.8 1,733.2 Billings in excess of WIP 483.5 454.2 470.5 Machinery business WIP -45.1 -28.0 -33.1 Progress billings 40.6 32.2 32.9 Billings in excess of WIP -4.5 4.2 -0.2 Balance Total WIP less total progress billings -67.2 -109.3 -95.1 Prepayments (liabilities) 524.1 486.4 503.4
  10. 10. SOLID FINANCIAL RATIOS 10© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 Equity ratio should increase further in H2 after dividend payout in Q2 Particularly strong ROCE 1) annualized 06/30/2013 12/31/2012 06/30/2012 Equity in € m 438.0 432.1 386.6 Equity ratio in % 23.8 23.9 22.1 Net financial status in € m 43.0 96.7 -48.3 Cash in € m 269.6 349.3 235.5 Gearing in % -10.9 -28.8 11.1 ROCE1) in % 34.7 43.9 29.5
  11. 11. HIGHER CAPEX TO ADJUST CAPACITIES TO INCREASED BUSINESS VOLUME © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 11 0 5 10 15 20 25 30 35 40 45 50 2009 2010 2011 2012 2013e New/modernized test centers in Japan, USA and Germany New site for Measuring and Process Systems in China Capacity expansion in Poland New assembly hall for painting and sealing robots in Bietigheim-Bissingen Capacity increase at Dürr Assembly Products (e.g. measuring, adjustment and testing technology) and at Paint and Final Assembly Systems (e.g. workshop) Capacity increase in glueing activities in € m
  12. 12. PAINT AND ASSEMBLY SYSTEMS Book-to-bill at 1.12 EBIT margin increased from 5.7% (H1 2012) to 7.8% (H1 2013) due to solid order execution, improved order quality and economics of scale 12© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 Operating result: Better than budgeted in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Incoming orders 625.8 703.4 301.7 378.7 Sales revenues 559.2 531.2 290.7 278.4 EBIT 43.5 30.2 24.5 16.8
  13. 13. Order backlog (€ 500 m) at record high Book-to-bill at 1.3 Sales increase in H2 expected EBIT margin above the 10% level in Q2 as well 13© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 APPLICATION TECHNOLOGY in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Incoming orders 325.9 303.2 143.5 137.0 Sales revenues 256.4 264.5 135.6 141.0 EBIT 27.3 25.6 14.4 14.0
  14. 14. MEASURING AND PROCESS SYSTEMS Sales at Balancing and Assembly Products stable, orders slightly above sales in H1 2013 Pronounced sales decline at Cleaning and Filtration Systems due to selective order intake in 2012, order intake stabilized in H1 2013 Earnings decrease due to lower sales volume, capacity reductions and structural changes at Cleaning and Filtration Systems; Balancing and Assembly Products with strong margins but lower volumes in general industry 14© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 Weaker order momentum in general industry, but still on a high level in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Incoming orders 284.4 334.5 138.4 174.8 Sales revenues 273.7 323.8 139.3 157.2 EBIT 16.3 22.8 10.5 13.2
  15. 15. CLEAN TECHNOLOGY SYSTEMS Incoming orders slightly below previous year´s level Positive result despite start-up costs in energy efficiency activities 15© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 Book-to-bill at 1.4 in € m H1 2013 H1 2012 Q2 2013 Q2 2012 Incoming orders 57.4 63.2 29.5 34.8 Sales revenues 42.4 43.8 23.6 24.3 EBIT 1.3 0.7 0.8 1.5
  16. 16. PASSENGER CAR SALES DEVELOPMENT JANUARY - JUNE 2013/12 © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 16 Change year-over-year in % -10 -9 -8 -7 -7 -2 5 8 21 -10 -5 0 5 10 15 20 25 India Japan Germany new EU countries Western Europe Russia Brazil USA China
  17. 17. 75% EMERGING MARKETS’ CONTRIBUTION TO GROWTH BETWEEN 2012 AND 2017 © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 17 China, India, Malaysia, Indonesia and Thailand with expected LV production growth >9% 19.6 20.7 21.3 22.3 23.2 23.9 19.3 18.9 20.0 21.7 22.7 23.4 21.8 21.6 22.9 23.8 24.6 25.3 16.6 18.2 20.6 23.1 25.0 26.01.9 1.7 1.9 2.2 2.4 2.5 0 10 20 30 40 50 60 70 80 90 100 110 2012 2013 2014 2015 2016 2017 America Europe Asia (without China) China Other CAGR in % Source: own estimates, PwC Last update: July 2013 in m units 4 6 9 3 4 79.2 81.1 86.7 93.1 97.9 101.1
  18. 18. 5.7 36.6 106.5 176.9 2009 2010 2011 2012 2013e EBIT margin / EBIT in € m 2.9% 0.5% 5.5% 7.4% 1,217 1,460 1,782 1,464 1,185 1,642 2,685 2,597 2,300- 2,500 2005 2006 2007 2008 2009 2010 2011 2012 2013e 1,078 1,261 1,922 2,400 2,400- 2,600 2009 2010 2011 2012 2013e OUTLOOK: 7.5% EBIT MARGIN IS ACHIEVABLE Incoming orders in € mSales in € m 7-7.5% 18© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
  19. 19. OUTLOOK: STRONG CASH FLOW/FREE CASH FLOW GENERATION EXPECTED Free cash flow in € mCash flow in € m 19 © Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 95 55 128 118 2009 2010 2011 2012 2013e 64 23 92 66 2009 2010 2011 2012 2013e Higher capex included in free cash flow expectation for 2013
  20. 20. SUMMARY H1 2013 on track, EBIT margin reached 7.3% Book-to-bill at 1.14; order backlog at one year’s sale Strong growth potential for global automotive industry, pipeline is filling up again Positive 2013 outlook unchanged: margins and orders at the upper end of the target range Cash flow expected to improve considerably in 2013/2014, free cash flow should exceed € 70 m p.a. in 2013/2014 20© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
  21. 21. FINANCIAL CALENDAR 08/30/2013 Commerzbank Conference, Frankfurt 09/12/2013 Credit Suisse Conference, London 09/16/2013 - 09/18/2013 UBS Conference, New York 09/23/2013 - 09/25/2013 Baader Bank / Berenberg-Goldman Sachs / Unicredit-Kepler-Cheuvreux Conference, Munich 11/06/2013 Interim report for the first nine months of 2013: Analysts' Conference CONTACT: 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 21© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
  22. 22. www.durr.comwww.durr.com CONFERENCE CALL RESULTS JANUARY – JUNE 2013 DÜRR AKTIENGESELLSCHAFT Bietigheim-Bissingen, August 1, 2013 Ralf W. Dieter, CEO Ralph Heuwing, CFO

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