Durr Ag · XETR:DUE
Durr — Q3 2009 Earnings Presentation
21 slides from Durr's earnings presentation, Nov 5, 2009
Slide 1: Welcome to the conference call: Results January-September 2009
Welcome to the conference call Dürr AG Results January-September 2009 Dürr Group Bietigheim-Bissingen, November 5, 2009
Slide 2: Disclaimer
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 b
Slide 3: Order backlog increased since crisis peak
Order backlog increased since crisis peak 9 months 9 months Q3 Q3 2009 2008 ∆ 2009 2008 ∆ in € m Incoming orders 845.8 1,277.3 -33.8% 339.0 401.2 -15.5% Sales revenues 813.0 1,157.9 -29.8% 241.5 405.2 -40.4% Orders on hand (09/30) 927.2 1,186.6 -21.9% 927.2 1,186.6 -21.9% § Sales revenues down 30% d
Slide 4: Sequential improvement of incoming orders
Sequential improvement of incoming orders in € m 600 517.8 500 131.3 401.2 400 358.3 339.0 Paint and Assembly 107.5 298.4 Systems 300 103.0 59.4 Measuring and 66.3 Process Systems 386.4 208.4 200 64.4 255.4 293.7 232.0 279.6 100 144.0 0 Q1 2008 Q1 2009 Q2 2008 Q2 2009 Q3 2008 Q3 2009 Dürr AG © CCI,
Slide 5: Incoming orders January – September
Incoming orders January – September in € m 1400 -33.8% 1200 1,277.3 1000 800 845.8 -66.2% 2008 600 542.3 2009 400 -3.1% +12.0% -33.1% 305.2 200 295.6 -35.7% 200.9 179.4 183.5 186.0 124.4 41.4 0 64.4 Total Germany Europe North America South Asia, Japan, without America Africa Germany § Germany: incre
Slide 6: German industrials survey: Dürr with leading position in Asia
German industrials survey*: Dürr with leading position in Asia in % 25 23 23 22 20 20 18 15 Asia 12 China 10 13 5 10 9 9 5 3 0 Dürr Klöckner Heidelberger SGL Krones Average Werke Druck Carbon * Source: HSBC Trinkaus & Burkhardt AG, German Industrials 09/23/2009. Sample contains 27 companies Dürr AG
Slide 7: Positive EBIT despite strong revenue decrease
Positive EBIT despite strong revenue decrease 9 months 9 months 2009 2008 ∆ in € m Gross profit on sales 166.2 198.5 -16.3% EBITDA 23.3 53.7 -56.6% EBIT 7.7 43.9 -82.5% Net loss/income -14.5 17.0 - § Gross margin improved to 21.3% in Q3: higher efficiency, good order quality and capacity reduction.
Slide 8: Positive free cash flow in Q3!
Positive free cash flow in Q3! Cash flow/free cash flow 9 months 2009 9 months 2008 in € m EBT -5.3 20.3 Depreciation and amortization of non-current assets 15.7 9.8 Interest result 13.9 25.1 Income taxes paid -9.4 -8.9 ∆ Provisions -9.1 0.6 ∆ Net working capital 11.7 3.3 Other -16.2 -10.8 Cash flow
Slide 9: Forfaiting returns to normal level
Forfaiting returns to normal level 12/31/2007 09/30/2008 12/31/2008 09/30/2009 in € m Factoring 14.2 11.3 15.0 13.6 Forfaiting 20.8 73.7 67.6 2.0 Total 35.0 85.0 82.6 15.6 Change vs. year end 50.0 -67.0 § On a comparable basis (incl. changes in factoring/forfaiting of € -67.0 m) cash flow was positi
Slide 10: Rising prepayments in Q3
Rising prepayments in Q3 Prepayments in € m Prepayments/order backlog in % 220 18 200 180 16 160 140 120 14 100 80 60 12 40 20 0 10 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Q Q Q Q Q Q Q Q Q Q Q Q
Slide 11: Net financial debt reduced in Q3
Net financial debt reduced in Q3 09/30/2009 09/30/2008 ∆ Equity in € m 315.4 304.7 € 10.7 m Equity ratio in % 32.2 25.0 7.2ppt Net financial debt in € m 81.3 17.5 € 63.8 m ROCE1) in % 2.2 15.3 -13.1ppt § Healthy equity basis § Net financial debt decreased in Q3 along with positive free cash flow; fu
Slide 12: Paint and Assembly Systems: Strong demand in Asia
Paint and Assembly Systems: Strong demand in Asia 9 months 9 months 2009 2008 ∆ in € m Incoming orders 655.6 935.5 -29.9% Sales revenues 565.7 857.1 -34.0% EBIT 9.9 30.9 -68.0% § Incoming orders in Q3 94% above Q1 and 21% above Q2; only slight decrease yoy § Strong sales decline; but bottom reached
Slide 13: Paint and Final Assembly Systems: New organizational structure
Paint and Final Assembly Systems: New organizational structure Objective: 15-20% cost reduction across the whole value chain Project Planning, Project Sales Engineering Purchasing Estimation Controlling Management … Commis- Documen- Ramp-up Fabrication Installation sioning tation Support § Leaner pr
Slide 14: Measuring and Process Systems: Stabilization on a lower level
Measuring and Process Systems: Stabilization on a lower level 9 months 9 months 2009 2008 ∆ in € m Incoming orders 190.2 341.8 -44.4% Sales revenues 247.3 300.8 -17.8% EBIT 0.6 16.4 -96.3% § Positive Q3 EBIT due to ongoing improvement in Balancing and Assembly Products. Only 9% sales decline in Bala
Slide 15: Cost cutting and optimization measures
Cost cutting and optimization measures Cost savings § Reduction of internal workforce since Q4 2008 -423 (-6% of total workforce) § 53% reduction of temps since Q4 2008 -520 (-7% of total workforce) § Working time accounts, short time work (~ 10%) § Spending containment (e.g. capex, travel costs) Ju
Slide 16: Summary
Summary § New organizational structure at Paint and Final Assembly Systems to lower costs § Project pipeline is increasing § Q4 2009: Dürr to stay positive in EBIT and free cash flow § Full cost reduction effects from January 2010 onwards § 2010: Slight increase in business volume and operating prof
Slide 17: Financial calendar
Financial calendar 11/06/2009 Berenberg European Conference, UK 11/09/2009 German Equity Forum, Frankfurt 12/03/2009 LBBW German Industrials Conference, Zurich 03/17/2010 Annual press conference / Analysts´ conference 04/28/2010 Interim report for the first quarter of 2010 04/30/2010 Annual general
Slide 18: Dürr AG © CCI, Conference Call Q3 2009, November 5, 2009
Dürr AG © CCI, Conference Call Q3 2009, November 5, 2009 - 18 -
Slide 19: Markets
Markets LV production in million units Region 2007 2008 2009 2010 2011 2012 2013 CAGR 2007-2013 North America 15.1 (-0.7%) 12.6 (-16.6%) 8.5 (-32.5%) 10.1 (18.8%) 12.2 (20.8%) 13.4 (9.8%) 14.2 (6.0%) -0.8% Mercosur 3.2 (18.5%) 3.4 (6.2%) 3.2 (-5.9%) 3.6 (12.5%) 3.9 (8.3%) 4.1 (5.1%) 4.5 (9.8%) 5.8%
Slide 20: Employees: 23.7% of workforce in emerging markets
Employees: 23.7% of workforce in emerging markets 09/30/08 in % 12/31/08 in % 09/30/09 in % Germany 3,059 50.1 3,059 49.8 3,006 52.0 Western Europe1) (ex Germany) 914 15.0 947 15.4 885 15.3 North America 687 11.2 679 11.1 479 8.3 Emerging markets2) 1,404 23.0 1,416 23.1 1,373 23.7 Others 43 0.7 42 0
Slide 21: Shareholder structure October 26, 2009
Shareholder structure October 26, 2009 Dürr AG © CCI, Conference Call Q3 2009, November 5, 2009 - 21 -