Durr Ag · XETR:DUE
Durr — Dürr Aktiengesellschaft — Q3 2023 Earnings Presentation
43 slides from Durr's earnings presentation, Nov 8, 2023
Slide 1: Results January - September 2023
Results January - September 2023 Dr. Jochen Weyrauch, CEO Dietmar Heinrich, CFO November 8, 2023 Bietigheim-Bissingen
Slide 2: Disclaimer
Disclaimer This publication has been prepared independently by Dürr AG/Dürr Group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number o
Slide 3: Agenda
Agenda 1. Overview 2. Divisions 3. Financials 4. Outlook 5. Summary www.durr-group.com © Dürr AG, Conference call – Q3 2023, November 8, 2023 3
Slide 4: Overview
DURR croup. Overview
Slide 5: Overview: Highlights Q3 2023
1. Overview: Highlights Q3 2023 Strong EBIT margin improvement ▪ Order intake at €922 m in Q3 (-30% from €1.3 bn in Q3 2022). Year-on-year development driven by timing effects: Prior year Q3 order intake included two large projects in North America whereas no large orders were recorded in Q3 2023. P
Slide 6: Overview: KPI development 9M 2023 vs. 9M 2022
1. Overview: KPI development 9M 2023 vs. 9M 2022 Margin improvement clearly visible in €m -11% 9M 2022 9M 2023 Margin +7% 3,929 +26% 3,509 3,299 3,078 187 +35% 148 5.7% 105 -88% 78 4.8% 3.2% 69 2.5% 8 Incoming orders Sales revenues EBIT before Net profit Free cash flow extraord. effects ▪ Order inta
Slide 7: Overview: Order intake
1. Overview: Order intake Temporary lower order intake in Q3 in €m Book-to-bill Order intake Key aspects ▪ Book-to-bill at 1.06 for the first 9 months 1.55 -30.1% -17.9% 1.44 ▪ Timing effect: Prior year with two large automotive 1.17 orders; temporarily no larger orders in Q3 1.15 ▪ Project pipeline
Slide 8: Overview: Regional development of order intake
1. Overview: Regional development of order intake Growth in Europe and Asia outside China in €m 9M 2022 9M 2023 -11% ▪ China: Low demand for woodworking 3,929 machinery and economic slowdown 3,509 ▪ Americas with large projects in prior year ▪ Growth in Asia outside China due to automotive projects
Slide 9: Overview: New division Industrial Automation Systems
1. Overview: New division Industrial Automation Systems Measuring and Process Systems & Production Automation Systems form new division NEW OLD Paint and Final Assembly Systems Industrial Automation Systems Measuring and Process Systems CEO: Bruno Welsch CEO: Jörg Brunke CEO: Jörg Brunke Paint shops
Slide 10: Overview: New divisional setup
1. Overview: New divisional setup Five divisions with improved profiles Paint and Woodworking Application Clean Technology Industrial Automation Final Assembly Machinery and Technology Systems Systems Systems Systems ▪ Paint shops ▪ Paint application ▪ Air pollution control ▪ Balancing technology ▪
Slide 11: Divisions
DURR croup. Divisions
Slide 12: Divisions: Paint and Final Assembly Systems
2. Divisions: Paint and Final Assembly Systems Strong margin improvement 9M 9M Q3 Q3 20232 20222 Δ 2023 20222 Δ Incoming orders in €m 1,266.2 1,226.3 3.2% 258.7 481.9 -46.3% Sales revenues in €m 935.6 852.9 9.7% 351.0 331.9 5.8% EBIT in €m 50.5 21.8 > 100% 21.7 12.7 71.1% EBIT margin in % 5.4 2.6 +2
Slide 13: Divisions: Application Technology
2. Divisions: Application Technology Double digit EBIT margin reached in Q3 9M 9M Q3 Q3 2023 2022 Δ 2023 2022 Δ Incoming orders in €m 551.3 516.4 6.8% 148.6 197.8 -24.9% Sales revenues in €m 449.3 419.4 7.1% 151.4 155.2 -2.4% EBIT in €m 38.4 31.4 22.3% 16.5 12.5 32.2% EBIT margin in % 8.5 7.5 +1.1 p
Slide 14: Divisions: Clean Technology Systems
2. Divisions: Clean Technology Systems Strong project execution drives significant margin improvement 9M 9M Q3 Q3 2023 2022 Δ 2023 2022 Δ Incoming orders in €m 366.1 354.9 3.2% 93.0 116.6 -20.2% Sales revenues in €m 348.8 329.9 5.7% 124.3 117.6 5.7% EBIT in €m 17.6 2.5 > 100% 9.3 1.6 > 100% EBIT mar
Slide 15: Divisions: Industrial Automation Systems
2. Divisions: Industrial Automation Systems Acquisition of BBS Automation drives sales and EBIT growth 9M 9M Q3 Q3 20232 20222 Δ 20232 20222 Δ Incoming orders in €m 386.3 452.2 -14.6% 131.3 145.8 -10.0% Sales revenues in €m 377.8 314.0 20.3% 142.7 114.8 24.3% EBIT in €m 8.7 13.6 -35.8% 5.4 5.7 -5.5%
Slide 16: Divisions: Woodworking Machinery and Systems
2. Divisions: Woodworking Machinery and Systems Order intake remains on low level – record margin reached in Q3 9M 9M Q3 Q3 2023 2022 Δ 2023 2022 Δ Incoming orders in €m 968.1 1,417.6 -31.7% 296.6 386.8 -23.3% Sales revenues in €m 1,222.2 1,194.9 2.3% 405.5 413.4 -1.9% EBIT in €m 84.5 80.2 5.4% 31.5
Slide 17: Divisions: Service business
2. Divisions: Service business Share of service business grows in Q3 – good margin development % of group sales Service sales in €m Key aspects Q3 ▪ Accelerated growth in Q3 driven by automotive 30.6 28.1 29.8 ▪ HOMAG service focus pays off: Small growth despite 27.8 27.8 27.3 26.9 weak utilization
Slide 18: Financials
DURR croup. Financials
Slide 19: Financials: Overview of key financial indicators
3. Financials: Overview of key financial indicators 9M 2023 9M 2022 Δ Q3 2023 Q3 2022 Δ Sales revenues in €m 3,299.2 3,078.1 7.2% 1,164.3 1,123.5 3.6% Gross profit on sales in €m 758.5 679.0 11.7% 262.7 243.7 7.8% Gross margin in % 23.0 22.1 +0.9 ppts 22.6 21.7 +0.9 ppts EBITDA in €m 254.8 228.3 11.
Slide 20: Financials: Revenue growth on track
3. Financials: Revenue growth on track Sales revenues in €m Key aspects Q3 +3.6% +3.9% ▪ Some delays in automotive projects due to late completion of civil construction work ▪ Americas gaining share as large projects are executed Sales per region 9M 2023 (y-o-y pp.) 1,236 1,124 1,120 1,164 -5 pp. +1
Slide 21: Financials: EBIT with strong growth in Q3
3. Financials: EBIT with strong growth in Q3 EBIT margin EBIT bef. e.e. Key aspects Q3 bef. e.e. in % in €m ▪ Gross margin improves by 90bps; mix shifts towards construction business as PFS outgrows the Group 7.1 6.8 ▪ Improved supply chain and better project margins 5.6 5.6 ▪ Overhead costs grow ab
Slide 22: Financials: Free cash flow hit by timing effects
3. Financials: Free cash flow hit by timing effects Free cash flow in €m Key aspects Q3 ▪ Solid earnings growth ▪ Strong increase of NWC ▪ Higher capex and taxes but lower interest payments 75 61 48 44 15 -5 32 69 -72 -50 -67 -14 12 -17 8 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FCF 9M EBIT Depreciation, ∆ NWC Capex
Slide 23: Financials: Net working capital up
3. Financials: Net working capital up BBS Automation acquisition adds to NWC – operational improvements visible in €m DWC NWC Key aspects Q3 ▪ €63 m operational build-up, rest due to BBS acquisition 48 ▪ Inventories decline sequentially despite acquisition ▪ Contract liabilities down sequentially du
Slide 24: Financials: Net debt increased due to acquisition
3. Financials: Net debt increased due to acquisition in €m Gearing Net financial status Key aspects Q3 ▪ Net debt increased driven by BBS acquisition ▪ Net financial status includes €121.3 m leasing liabilities 33% 1% 10% 5% 4% 0% 10% -11 -116 -4 -120 -55 -46 in €m 09/30/2023 12/31/2022 09/30/2022 T
Slide 25: Financials: Liquidity headroom remains comfortable
3. Financials: Liquidity headroom remains comfortable in €bn in €m Maturity profile (financial instruments only) 1.5 1.45 500 0.50 400 1.0 300 200 0.5 0.95 100 0.11 0.0 0.00 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Available funds Financial liabilities < 12 months Cash credit facilities S
Slide 26: Outlook
DURR croup. Outlook
Slide 27: Outlook: Cost saving measures at HOMAG
4. Outlook: Cost saving measures at HOMAG Background ▪ Cyclical downturn in demand for woodworking machines after peak years in 2021 and 2022 – in addition high interest rates impact residential construction activity ▪ Current capacities at HOMAG cannot be fully utilized Measures ▪ Global capacity r
Slide 28: Outlook: How to get to 10% EBIT margin at HOMAG
4. Outlook: How to get to 10% EBIT margin at HOMAG Achievements since 2019 Further potentials ▪ Closed production at Hemmoor ▪ Service share up by 1%-point adds 25 – 30 bps to EBIT margin ▪ Streamlined product portfolio ▪ New logistics center start operating in 2024 ▪ Improved processes and introduc
Slide 29: Outlook: Guidance 2023
4. Outlook: Guidance 2023 Restructuring charges at HOMAG reflected in updated guidance Actual 2022 Targets Feb. 2023 Targets 2023 Incoming orders in €m 5,008 4,400 – 4,800 4,400 – 4,800 Sales revenues in €m 4,314 4,500 – 4,800 4,500 – 4,800 EBIT margin before extraordinary effects in % 5.4 6.0 – 7.0
Slide 30: Outlook: Breakdown of 2023 guidance by division
4. Outlook: Breakdown of 2023 guidance by division Order intake Sales revenues EBIT margin (in %) (in €m) (in €m) before e.e.1 Targets Current Targets Current Targets Current 2022 Feb. 2023 Targets 2023 2022 Feb. 2023 Targets 2023 2022 Feb. 2023 Targets 2023 Paint and Final Assembly Systems2 1,554 1
Slide 31: Summary
DURR croup. Summary
Slide 32: Summary
5. Summary 1. New divisional setup better reflects automation business 2. Order intake remains on track to reach upper end of guidance – strong Q4 expected 3. EBIT margin before extraordinary effects with significant improvement in Q3 – HOMAG reaches new quarterly record 4. Measures defined to cut c
Slide 33: Appendix
Appendix
Slide 34: P&L in detail
P&L in detail in €m 9M 2023 9M 2022 Δ Q3 2023 Q3 2022 Δ Sales revenues 3,299.2 3,078.1 7.2% 1,164.3 1,123.5 3.6% Cost of sales -2,540.6 -2,399.1 -5.9% -901.6 -879.9 2.5% Gross profit on sales 758.5 679.0 11.7% 262.7 243.7 7.8% Selling expenses -304.4 -286.0 -6.4% -97.2 -95.4 1.9% General administrat
Slide 35: Balance sheet highlights (1/2)
Balance sheet highlights (1/2) Assets 09/30/20231 12/31/2022 09/30/2022 Non-current assets 1,942.1 1,482.3 1,511.9 of which goodwill and intangibles 1,112.9 717.3 729.0 of which property, plant and equipment 646.3 588.5 592.4 of which investment and financial assets 43.9 45.0 54.3 Current assets 3,4
Slide 36: Balance sheet highlights (2/2)
Balance sheet highlights (2/2) Equity and Liabilities in €m 09/30/20231 12/31/2022 09/30/2022 Total equity 1,185.4 1,124.2 1,104.4 of which non-controlling interests 12.9 5.5 5.4 Non-current liabilities 1,250.7 957.9 988.0 of which provisions 55.4 56.8 43.8 of which bond and Schuldschein loans 952.5
Slide 37: Cash flow
Cash flow in €m 9M 2023 9M 2022 Q3 2023 Q3 2022 EBT 151.9 116.2 65.7 50.7 Depreciation and amortization of non-current assets 91.7 96.3 33.6 32.7 Interest result 12.0 15.7 5.9 5.6 Income taxes paid -57.9 -41.1 -22.1 -11.0 Δ Provisions -4.9 -29.5 7.7 -5.8 Δ Net working capital -63.0 8.7 -75.1 -4.8 Ot
Slide 38: Overview: Financial figures by division (1/2)
Overview: Financial figures by division (1/2) 20231 20221 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Incoming orders in €m 606.6 400.9 258.7 1,266.2 426.6 317.8 481.9 328.0 1,554.4 284.8 321.0 225.6 390.1 1,221.5 Sales revenues in €m 267.6 317.0 351.0 935.6 232.6 288.4 331.9 413.6 1,
Slide 39: Overview: Financial figures by division (2/2)
Overview: Financial figures by division (2/2) 2023 2022 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Incoming orders in €m 352.6 318.8 296.6 968.1 573.8 457.0 386.8 288.2 1,705.8 440.1 432.3 495.0 345.4 1,712.8 Sales revenues in €m 403.8 412.9 405.5 1,222.2 366.8 414.7 413.4 407.2 1,60
Slide 40: Overview: extraordinary effects
Overview: extraordinary effects in €m 20231 20221 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total PFS -0.6 1.0 -0.1 0.3 -0.6 -0.7 -0.5 -2.3 -4.1 -0.6 -4.4 -0.2 -0.3 -5.5 thereof PPA -0.6 -0.6 -0.6 -1.8 -0.6 -0.6 -0.6 -0.6 -2.4 -0.6 -0.6 -0.6 -0.6 -2.4 APT -0.1 -0.4 -0.1 -0.5 0.1 0.1 -0.1
Slide 41: Shareholder structure
Shareholder structure Free float at 70.3%1 Heinz Dürr GmbH, Berlin 26.2% Heinz und Heide Dürr Stiftung, Berlin 2 Institutional and private investors, including − SMALLCAP World Fund, Inc.: 3.13% − Candriam: 3.05% − Members of the Dürr Supervisory Board: 0.12% − Members of the Dürr AG Board of Manage
Slide 42: Financial calendar
Financial calendar https://www.durr-group.com/en/investor-relations/financial-calendar November 2023 January 2024 ▪ 11/09/2023 Interim statement for the first nine months of 2023 ▪ 01/09-10/2024 Commerzbank & ODDO BHF German Investment ▪ 11/13/2023 BNP Paribas Exane MidCap CEO Conference, Paris Semi
Slide 43: Results January-September 2023
Dürr Aktiengesellschaft Carl-Benz-Str. 34 74321 Bietigheim-Bissingen Germany +49 7142 78-0 Results corpcom@durr.com www.durr-group.com January-September 2023 Dr. Jochen Weyrauch, CEO Dietmar Heinrich, CFO November 8, 2023 Bietigheim-Bissingen
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