Drägerwerk AG & Co. KGaA Analysts‘ Conference · PDF fileCRM ERP Infrastr....

Drägerwerk AG & Co. KGaAAnalysts‘ Conference

Lübeck, March 12, 2014

Disclaimer

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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.

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.

Interim financial reports as well as preliminaries are not audited.

Analysts‘ Conference | Lübeck | March 12, 2014

Technology for LifeHow everything began

3 | 30

World‘s first anesthetic apparatus

World‘s first ventilator: Pulmotor

First reducing valve for carbonic acid, the Lubeca-Valve; first patent

Mining breathing apparatusModel 1904/09

First Edition of the customer magazine „Drägerheft“

1889 1902 1906 1907 1912


125 years laterContinuous innovation

Anesthesia and modular design: Perseus A500

Closed circuit breathing apparatusDräger BG 4 plus

Making ventilation visible: pulmonary monitorPulmoVista 500

Buy back of the joint venture share in the medical division from Siemens, capital increase and listing of the common shares

Dräger celebrates 125th

anniversary

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2010 2011 20122009


Dräger todayA global company

PlatzhalterBild

new productsper year*

granted patentsper year*

produced breathing apparatus

per month*Direct sales and service

staff*

6 22 1.00 20012 44 .000 40018 66 .000 60024 88 .000 80028 150 >5,000 >4,000

Employees 13,334

Net Sales € 2,374 million

Headquarter Lübeck

Production sites Germany, Brazil, China, GreatBritain, Sweden, South Africa, Czech Republic, USA

Distribution- and servicecenters

in over 50 countries

* 2013

5 | 30

CAGR: Average annual growth rates

Net Salesin € million


6 | 30

Dräger abroadFurther developments of activities in China

� Extension to the development and production site in Shanghai completed

� Investments of EUR 13 million

� Shanghai as our “bridgehead“ site: development and production of products for the Asian markets


17%

24%

2007 2013

Share of sales NIC*

Dräger in the worldWe‘re investing in the fast growing markets

* Newly industrialized countries

Analysts‘ Conference | Lübeck | March 12, 20147 | 30

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Specialisation of distribution channels Example: market segment oil and gas industry

� Cross-border collaboration of our country organizations for our clients in the Oil & Gas industry in the North sea region

� Combining Dräger expertise in the areas product, rental solutions service and training.

� Customized solutions with an added value for costumers and a differentiating factor towards our competition

..

Portfolio

Training

segmentexpertise

MarketingCommunication

Services


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Hospital wide solutionsCross-product integrated solutions

� Dräger wins largest Monitoring tender in France

� Hospital wide solution: OR, Recovery, ICU, Emergency, Step down unit, Endoscopic unit

� Combination of Dräger equipment with 3rd party expertise to an integrated solution


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Engineered SolutionsComplex Solution business for Safety Customers

� Solutions that need space: new production and engineering facility in Schlutup, Lübeck.

� Production of interchangeable special units for tunnel rescue trains and rescue chambers.

� 2013: Order for the world’s first railway and subway fire training unit for the fire service academy Hamburg.


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Business processes and IT-SystemsGlobal Roll-out of ERP System

� Harmonizing business process alongside the complete order fulfillment and in the administration areas

� Successful go-line in Germany – more than 1,000 users on new processes and IT-systems

� Integration of the first foreign subsidiary completed

� Integration of most important subsidiaries will be completed by 2016

Business

Diversity

ERPCRM

Infrastr.

Integration

Process Landscape

Harmonization

PLM

Processes IT


Financial overview

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-0.9% (+2.2%)1 0.0% (+3.1%)1

Order Intakein € million

Net Salesin € million

2012 2013 2012 2013

Business development Dräger Group

+9.7%+8.5%

Key figures

Gross Margin

Net profit*

DVA*

2012 2013

Functional Expenses*

SGA ratio**

EBIT-Margin

EBITin € million

1 Currency adjusted

49.1%

135.7

150.0

935.4

31.0%

48.3%

119.9

113.9

942.2

31.1%

* in € million

R&D ratio 8.3% 8.5

� Base effect 2012: adjusted for large order (Deutsche Bahn), order intake is up +4.4%

� Orderbook increases by +2.1%1

to €475 million

� Net sales growth +3.1%1 within guidance

� Gross margin slightly below prior year (-0.8 percentage points)

� Increase of functional expenses slightly above net sales growth

� EBIT below prior year due to margin and FX-effects and increase in functional expenses


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Net Sales- and cost base by currency

Other currencies

USD

Euro

Net sales Expenses


49%64%

11%

17%

40%

19%

15 | 30

+2.2%

Germany Asia/PacificAmericasRest ofEurope

2012 2013

Other markets

2012 2013 2012 2013 2012 2013 2012 2013

-1.8% +4.5% +12.8% +4.3%

€ 2,374.2

million

Other markets

Germany

Rest of Europe

Americas

Asia/Pacific

Net sales by regionin %

Currency adjusted

Regional business developmentDräger Group

Net salesin € million


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+0.0% (+3.2%)1 -0.9% (+2.3%)1

Business development Medical division

2012

2013 2012 2013



DVA

Employees

new products

2012 2013

R&D ratio

+11.9%+9.9%

EBITin € million

2012

2013

EBIT-Margin 1 Currency adjusted

135.2

8.7%

15

97.5

9.2%

14

6,948 7,319

Keys figures

� Good order intake in Anesthesiology, service and Hospital consumables

� Again, increase in order intake and net sales (constant currency) in the particularly strong year end business

� Orderbook up +4.2%1 to € 309.8 million

� Growth came from outside Europe, i.e. Asia/Pacific

� Gross margin (-1.1 percentage points) burdened by FX-effects

� EBIT down year over year due to FX-effects and higher functional expenses


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+1.8% (+4.8%)1-2.4% (+0.5%)1

2012 2013

Business development Safety division

+11.5%+10.3%


2012 2013

2012 2013

DVA

Employees

New products

2012 2013

R&D ratio

EBITin € million

EBIT-Margin 1 Currency adjusted

79.0

6.8%

14

69.3

6.7%

14

4,771 5,131

Key figures

� Adjusted for exceptionally large order in 2012, order intake grew +6.5%1 and order book +2.9%1

� Healthy demand in Plant Safety, Service and Consumables business

� All regions contributed to a net sales growth of +4.8%1

� Gross margin slightly below prior year due to FX and product mix (-0.4 percentage points)

� EBIT down as a result of margin- and FX-effects and increased functional expenses


6.886.94

5.245.30

110.00.4

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Key figures

78.2

€ million

Change20132012

+28.8520.3

+16.71,052.919.1 %

+41.4110.6Investments

-30.2232.1

-61.468.3

%€ million

404.1

901.925.5 %

332.4

176.8

+93.756.80.2

EPS common sharesEPS preferred shares

7.677.73

-10.3-10.2

EPS common shares on full distribution

EPS oreferred shares on full distribution

5.845.90

-10.3-10,2

Cash flow from operating activities

Cash and cash equivalents1

Net financial debt1

Net financial debt1/EBITDA2

Net working capital1

Capital employed1

ROCE2

1 Values at due date2 EBITDA and accordingly EBIT of the last twelve months


19 | 30

942.2

39.7 %

738.5

31.1 %

201.5

8.5 %

Change

%

+2.1

+0.4

+0.7

€ million

20132012

€ million

197.3

8.3 %

735.4

31.0%

935.4

39.4 %

Functional expenses

Research and development

in % of net sales

Selling, General and Administrative

in % of net sales

Expenses Total

in % of net sales


0.83 €

18.0

5.4

7.8

4.8

119.9

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15.1 %

Dividend

Net profit

€ million

Dividended proposal 2013

Net payout ratio

- Preferred shares

- Common shares

- Participation certificates 1

135.7

15.1 %

19.9

5.8

8.7

5.3

€ million

1 Without minimum dividend, after taxes

after earnings attributable to non-controllinginterestes

0.77 €

31 Dec 2012 31 Dec 2013

Dividend per common share

Dividend per preferred share

0.86 €

0.92 €


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2013 2014e

CAGR > 4 % 3.0 % - 6.0 %(currency adjusted )

8.0 % - 10.0 %

+ 0.0 %(currency adjusted +3.1 %)

8.5 %

Midterm2018e

10.0 % - 12.0 %

48.0 % - 49.0 % 48.3 %

50 % - 75 % of EBIT

34 % of EBIT

41 % – 44 % 39.5 %

Net sales

EBIT margin

Gross Margin

Cash flow conversion

Equity ratio

Outlook and mid-term perspective


Annual Report 2013 – “Moments“Three Experts report about their field of expertise

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Experience of a “Draegerman“


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Appendix


89,512,5 %

718,246,8 %

119.9

-23.532.4 %

200.88.5 %

2,374.248.3 %

24 | 30

+0.0

475.4Orders on hand

Order intake

-24.1113.9150.0DVA

Net profit

627.9

€ million

Change

-12.8230.39.7 %

EBITEBIT margin

-32.831.2%

Interest ResultTax rate

-0.92,384.62,405.5

€ million€ million

Q4 2012

92,912,8 %

636.7

€ million

Change

-3.6

-1.4

% %

-11.6135.7

Q4 2013 2012 2013

1

1

1

1

-28.6

-1.6483.0 1

Net salesGross margin

726.948.3 %

-1.2 2,373.549.2%

1 Currency adjusted - quarter 2013: Order intake +3.1%, net sales +2.9%Currency adjusted - year 2013: Order intake +2.2%, orders on hand +2.1%, net sales +3.1%

Business developmentDräger Group


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97.5

76.1

15.8 %

480.6

153.3

9.9%

1,544.71

417.3

309.81

1,558.61

ChangeQ4 2013

%€ million

1

1

-11.6

-2.9

-3.6

€ million

20132012

€ million

310.5

135.2

185.3

11.9 %

1,558.0

1,558.4

€ million

2011

319.8

144.0

191.8

12.9 %

1,484.5

1,518.8

€ million

Q4 2012

86.1

17.4%

494.7

432.9

Business developmentMedical division

1 Currency adjusted – quarter: Order intake +1.0 %, orders on hand +4.2 %, net sales +1.3 %1 Currency adjusted – year: Order intake +3.2 %, net sales +2.3 %

Orders on hand

DVA

EBIT

EBIT margin

Net sales

Order intake


26 | 30

167.11

859.81 220.2

32.2

12.1 %

248.0

69.3

89.2

10.3%

864.41

ChangeQ4 2013

%€ million

1

1

10.3

2.7

+3.5

€ million

20132012

€ million

173.7

79.0

97.3

11.5 %

849.3

880.8

€ million

2011

142.8

57.5

76.1

9.5 %

802.7

805.0

€ million

Q4 2012

29.2

13.0 %

241.6

212.7

1 Currency adjusted – quater: Order intake +7.6 %, Order on hands -1.5 %, net sales +6.6 %1 Currency adjusted – year: Order intake +0.5 %, net sales +4.8 %

Business developmentSafety division

Orders on hand

DVA

EBIT

EBIT margin

Net sales

Order intake


27 | 30

2,065.0

1,347.8

€ million

ChangeAssets

1,389.8

372.3

640.8

102.6

232.1

362.9

600.3

94.2

332.4

717.2710.4

283.0

310.8

123.4

282.6

278.4

149.4

%€ million

2,100.1

1 Previous year’s figures were adjusted retrospectively due to first-time adoption of IAS 19 (2011) in accordance with IAS 8.

Current assets

Inventories

Trade receivables

Other current assets

Cash and cash equivalents

Non-current assets

Intangible assets

Property, plant and equipment

Other non-current assets

Total assets

Dec 31, 20121 Dec 31, 2013

Consolidated balance sheet

-3.0

2.6

6.8

8.9

-30.2

1.0

0.2

11.6

-17.4

-1.7


28 | 30

€ million

Change

677.4758.3

186.4

80.5

172.4

238.1

224.6

104.3

169.2

260.3

571.6612.2

20.0

217.2

252.3

82.2

19.2

229.8

282.9

80.2

816.0729.7

%€ million

2,065.02,100.1

Consolidated balance sheet

Equity and liabilities

Current liabilities

Non-current liabilities

Liabilities from participation certificates

Provisions for pensions and similar obligations

Non-current interest-bearing loans

Other non-current liabilities

Equity

Total equity and liabilities

Current provisions

Current loans and liabilities to banks

Trade payables

Other current liabilities

Dec 31, 20121 Dec 31, 2013

-10.7

-17.0

-22.8

1.9

-8.5

-6.6

4.2

-5.5

-10.8

2.5

11.8

-1.71 Previous year’s figures were adjusted retrospectively due to first-time adoption of IAS 19 (2011) in accordance with IAS 8.


29 | 30

20132012 2

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

68.3

176.8

-65.5 -86.5 -70.8-88.9-80.7

-192.0

Cash flow statement

Operatingactivities

Investingactivities

Financingactivities

Change incash1

1 Without effects of exchange rates on cash and cash equivalents

2 adjusted values


March 12, 2014 - Accounts press conference, Lübeck- Analysts meeting, Lübeck

May 7, 2014 - Report for the first three months 2014 - Conference call, Lübeck

May 9, 2014 - Annual shareholders' meeting, Lübeck

July 31, 2014 - Report for the first six months 2014 - Conference call, Lübeck

October 30, 2014 - Report for the first nine months 2014 - Conference call, Lübeck

Financial calendar

Analysts‘ Conference | Lübeck | March 12, 201430 | 30

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