Durr Ag · XETR:DUE
Durr — Dürr Aktiengesellschaft — Q1 2023 Earnings Presentation
42 slides from Durr's earnings presentation, May 9, 2023
Slide 1: Results January - March 2023
Results January - March 2023 Dr. Jochen Weyrauch, CEO Dietmar Heinrich, CFO May 9, 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 – Q1 2023, May 9, 2023 3
Slide 4: Overview: Highlights Q1 2023
1. Overview: Highlights Q1 2023 Record order intake and solid cash flow – guidance confirmed ◼ New quarterly record order intake achieved with € 1.5 bn. Large orders received for automotive and e-mobility production equipment. First order for solvent recovery for battery plant in North America. HOMA
Slide 5: Overview: KPI development Q1 2023 vs. Q1 2022
1. Overview: KPI development Q1 2023 vs. Q1 2022 Strong top-line development – earnings still muted in € m +5% +12% Q1 2022 Q1 2023 Margin 1,465 1,015 1,401 -6% 906 -41% -22% 45 42 75 27 21 4.9% 44 4.1% 3.0% 2.1% Incoming orders Sales revenues EBIT before Net profit Free cash flow extraord. effects
Slide 6: Overview: Quarterly record order intake
1. Overview: Quarterly record order intake High book-to-bill ratio of 1.44 in € m Key aspects +4.6% +35.7% ◼ Strong demand for automotive and 1.55 Book-to-bill e-mobility production equipment Order intake 1.17 ◼ Orders for environmental and battery 1.15 1.44 production technology with high 0.87 mome
Slide 7: Overview: Strong order momentum in Europe & Asia
1. Overview: Strong order momentum in Europe & Asia in € m ◼ Large automotive orders in Europe/Germany +5% ◼ China and Americas somewhat below very 1,465 1,401 high levels of prior year ◼ Strong growth in India driven by automotive +25% -15% -7% 491 414 383 +10% 392 358 +41% 305 154 169 83 117 Total
Slide 8: Divisions
DURR croup. Divisions
Slide 9: Divisions: Paint and Final Assembly Systems
2. Divisions: Paint and Final Assembly Systems Record order intake – gross margin in order intake further improved Q1 2023 Q1 2022 Δ Incoming orders in € m 641.0 460.6 39.2% Sales revenues in € m 306.0 263.9 16.0% EBIT in € m 6.3 13.7 -53.8% EBIT margin in % 2.1 5.2 -3.1 pp. EBIT before extraordinar
Slide 10: Divisions: Application Technology
2. Divisions: Application Technology Record order intake – lower service share after strong Q4 Q1 2023 Q1 2022 Δ Incoming orders in € m 227.2 167.8 35.5% Sales revenues in € m 141.8 122.9 15.4% EBIT in € m 9.8 9.6 1.6% EBIT margin in % 6.9 7.8 -0.9 pp. EBIT before extraordinary effects in € m 9.8 9.
Slide 11: Divisions: Clean Technology Systems
2. Divisions: Clean Technology Systems High demand – margins improved but still on low level Q1 2023 Q1 2022 Δ Incoming orders in € m 158.4 112.2 41.2% Sales revenues in € m 100.8 95.8 5.2% EBIT in € m 1.2 -1.2 - EBIT margin in % 1.2 -1.3 +2.5 pp. EBIT before extraordinary effects in € m 2.2 0.2 > 1
Slide 12: Divisions: Measuring and Process Systems
2. Divisions: Measuring and Process Systems Order intake close to high prior year’s level – revenues recover Q1 2023 Q1 2022 Δ Incoming orders in € m 98.8 101.1 -2.3% Sales revenues in € m 73.5 66.8 10.1% EBIT in € m 3.6 3.7 -1.5% EBIT margin in % 4.9 5.5 -0.6 pp. EBIT before extraordinary effects i
Slide 13: Divisions: Woodworking Machinery and Systems
2. Divisions: Woodworking Machinery and Systems Order intake stabilized – solid margin start despite lower service share and higher R&D costs Q1 2023 Q1 2022 Δ Incoming orders in € m 352.6 573.8 -38.5% Sales revenues in € m 403.8 366.8 10.1% EBIT in € m 25.3 22.8 10.9% EBIT margin in % 6.3 6.2 +0.0
Slide 14: Divisions: Service business
2. Divisions: Service business Low sales share of service business – but strong order intake % of group sales Service sales in € m Key aspects Q1 30.6 ◼ Service share almost 300 bps below Q1 2022 28.1 27.8 27.8 ◼ Service margin above level of Q1 and full year 2022 26.9 Service mix Q1 2023 344 315 +1
Slide 15: Financials
DURR croup. Financials
Slide 16: Financials: Overview of key financial indicators
3. Financials: Overview of key financial indicators Q1 2023 Q1 2022 Δ Sales revenues in € m 1,014.7 905.7 12.0% Gross profit on sales in € m 231.6 213.8 8.3% Gross margin in % 22.8 23.6 -0.8 pp. EBITDA in € m 65.9 74.7 -11.8% EBIT in € m 37.7 43.7 -13.8% EBIT margin in % 3.7 4.8 -1.1 pp. EBIT before
Slide 17: Financials: Revenue growth on track
3. Financials: Revenue growth on track Sales revenues in € m Key aspects Q1 ◼ Still some supply chain constraints; low service share +12.0% -17.9% ◼ Americas gaining share as order intake starts to translate into revenues Sales per region Q1 2023 1,236 +-0 pp. 1,124 -1 pp. 1,049 1,015 Germany 906 18
Slide 18: Financials: EBIT margin with muted start
3. Financials: EBIT margin with muted start 6.8% 5.6% 6.0 Key aspects Q1 4.9% ◼ Lower service share compared to Q1 2022 4.8 4.9 ◼ Higher material cost level; inflation compensation payment 4.1% for German employees in January 3.9% 3.7 ◼ Higher overhead due to sales commissions and R&D 3.1 -6% 74 EBI
Slide 19: Financials: Solid free cash flow
3. Financials: Solid free cash flow Free cash flow in € m Key aspects Q1 ◼ Lower improvement of NWC compared with Q1 2022 ◼ Higher level of provisions included in other ◼ Higher capex level driven by HOMAG program 75 61 48 44 75 -6 -53 -3 28 -67 4 44 3 -5 Q1 Q2 Q3 Q4 Q1 FCF Q1 EBIT Depreciation, ∆ N
Slide 20: Financials: net working capital stable at low level
3. Financials: net working capital stable at low level in € m DWC Key aspects Q1 38 NWC ◼ Significant prepayments in line with record order intake 36 36 ◼ Inventories further increased – likely reached peak level 37 ◼ DWC well below target range of 40 to 50 days 35 in € m 03/31/2023 12/31/2022 03/31
Slide 21: Financials: Low net debt level
3. Financials: Low net debt level in € m Gearing Key aspects Q1 Net financial status ◼ Net debt declined due to solid free cashflow generation ◼ Net financial status includes € 92.1 m leasing liabilities 1% 10% 5% 4% 0% -11 -4 in € m 03/31/2023 12/31/2022 03/31/2022 -46 Total liquidity 904.7 866.1 9
Slide 22: €300m green Schuldschein loan issued
€300m green Schuldschein loan issued ◼ Proceeds earmarked for sustainable product innovations and Dürr Group Sustainable Finance Framework climate-friendly projects according to EU taxonomy classification ◼ Tranches with 4, 5 and 7 year maturities. Volume weighted average duration increased by appro
Slide 23: Financials: Comfortable liquidity headroom
3. Financials: Comfortable liquidity headroom Pro-forma incl. €300m green Schuldschein + repayment of €50m maturity in April 2023 in € bn Maturity profile (financial instruments only) in € million 2.0 250 1.65 200 1.5 0.50 150 1.0 0.25 100 0.5 0.68 50 0.22 0.03 0.0 0 Available funds Financial liabil
Slide 24: Outlook
DURR croup. Outlook
Slide 25: Fundamental demand drivers intact
4. Fundamental demand drivers intact Our solutions help our customers achieve efficient and sustainable production FUNDAMENTAL TRENDS Population growth Growing middle class Resource efficiency Environmental protection Market specific trends Dürr Group ▪ Decarbonization of production ▪ A leader in re
Slide 26: Outlook: BEVs drive automotive industry dynamics
4. Outlook: BEVs drive automotive industry dynamics Existing OEMs and new players invest into modern manufacturing facilities Worldwide production volume of BEVs In million vehicles 35.7 32.9 29.0 +32.1% 25.3 21.3 17.5 14.3 10.9 7.9 2.2 4.6 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Sour
Slide 27: Outlook: Guidance 2023
4. Outlook: Guidance 2023 Record order backlog to drive profitable growth in 2023 Actual 2022 Targets 2023 Incoming orders in € m 5,008 4,400 – 4,800 Sales revenues in € m 4,314 4,500 – 4,800 EBIT margin in % 4.8 5.6 – 6.6 EBIT margin before extraordinary effects in % 5.4 6.0 – 7.0 ROCE in % 17.3 19
Slide 28: 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.* 2022 Targets 2023 2022 Targets 2023 2022 Targets 2023 Paint and Final Assembly Systems 1,787 1,600 – 1,750 1,436 1,650 – 1,750 4.0 4.7 – 5.7 Application Technology 654 560
Slide 29: Strategy and mid-term targets for profitable growth
4. Strategy and mid-term targets for profitable growth More than € 6 billion sales targeted in 2030 Glocal Technology digital@Dürr Efficiency Life Cycle 5% - 6% Leadership Services CAGR sales revenues ▪ Global business with ▪ Most efficient & ▪ Software as ▪ Drive synergies, esp. ▪ Leverage vast loc
Slide 30: Summary
DURR croup. Summary
Slide 31: Summary
5. Summary 1. Quarterly record order intake driven by strong automotive orders 2. Revenue growth on track; EBIT margin impacted by business mix and inflation compensation payments in Germany 3. Solid free cashflow generation due to strong prepayments 4. Guidance for 2023 confirmed Solid start regard
Slide 32: Appendix
Appendix
Slide 33: P&L in detail
P&L in detail in € m Q1 2023 Q1 2022 Δ Sales revenues 1,014.7 905.7 12.0% Cost of sales -783.1 -691.8 -13.2% Gross profit on sales 231.6 213.8 8.3% Selling expenses -97.3 -91.4 -6.5% General administrative expenses -57.8 -52.0 -11.2% Research and development costs -39.0 -33.0 -18.0% Other operating
Slide 34: Balance sheet highlights (1/2)
Balance sheet highlights (1/2) 03/31/2023 12/31/2022 03/31/2022 Non-current assets 1,463.8 1,482.3 1,481.7 of which goodwill and intangibles 714.4 717.3 729.0 of which property, plant and equipment 586.3 588.5 574.9 of which investment and financial assets 44.2 45.0 53.0 Current assets 3,126.1 3,048
Slide 35: Balance sheet highlights (2/2)
Balance sheet highlights (2/2) Equity and Liabilities in € m 03/31/2023 12/31/2022 03/31/2022 Total equity 1,139.8 1,124.2 1,059.0 of which non-controlling interests 5.6 5.5 5.6 Non-current liabilities 928.1 957.9 1,042.7 of which provisions 57.0 56.8 52.8 of which bond and Schuldschein loans 727.1
Slide 36: Cash flow
Cash flow in € m Q1 2023 Q1 2022 EBT 32.3 38.6 Depreciation and amortization of non-current assets 28.2 31.0 Interest result 5.2 4.4 Income taxes paid -10.9 -14.8 Δ Provisions -4.6 -17.0 Δ Net working capital 8.4 61.4 Other 18.0 2.0 Operating cash flow 76.6 105.7 Interest paid (net) -2.1 -4.9 Repaym
Slide 37: Overview: Financial figures by division (1/2)
Overview: Financial figures by division (1/2) 2023 2022 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Incoming orders in € m 641.0 641.0 460.6 411.9 546.7 367.4 1,786.6 301.9 358.0 255.5 446.5 1,361.9 Sales revenues in € m 306.0 306.0 263.9 326.0 376.6 469.7 1,436.2 248.4 242.1 257.9 34
Slide 38: 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 352.6 352.6 573.8 457.0 386.8 288.2 1,705.8 440.1 432.3 495.0 345.4 1,712.8 Sales revenues in € m 403.8 403.8 366.8 414.7 413.4 407.2 1,602.1 302.6 341.8 352.1 36
Slide 39: Overview: extraordinary effects
Overview: extraordinary effects in € m 2023 2022 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total PFS -1.4 -1.4 4.7 -1.8 -2.1 -3.1 -2.3 -1.1 -5.1 -0.7 0.7 -6.2 thereof PPA -1.4 -1.4 -0.2 -1.8 -2.1 -1.4 -5.5 -1.2 -1.2 -1.1 0.4 -3.0 APT -0.1 -0.1 0.1 0.1 -0.1 -0.1 0.0 -0.2 0.1 -0.2 0.2 -0.1
Slide 40: 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 Luxembourg: 3.12% − Members of the Dürr AG Supervisory Board: 0.12% − Members of the Dürr AG Bo
Slide 41: Financial calendar
Financial calendar https://www.durr-group.com/en/investor-relations/financial-calendar May 2023 August 2023 ◼ 05/09 Interim statement for the first quarter of 2023 ◼ 08/03 Interim financial report 2023 ◼ 05/11 Annual general meeting HOMAG Group AG ◼ 05/12 Annual general meeting Dürr AG November 2023
Slide 42: Results January - March 2023
Dürr Aktiengesellschaft Carl-Benz-Str. 34 74321 Bietigheim-Bissingen Germany +49 7142 78-0 Results corpcom@durr.com www.durr-group.com January - March 2023 Dr. Jochen Weyrauch, CEO Dietmar Heinrich, CFO May 9, 2023 Bietigheim-Bissingen
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