Durr Ag · XETR:DUE
Durr — Dürr Aktiengesellschaft — Q2 2024 Earnings Presentation
50 slides from Durr's earnings presentation, Aug 8, 2024
Slide 1: Results January to June 2024
Results January to June 2024 Dr. Jochen Weyrauch, CEO of Dürr AG Dietmar Heinrich, CFO of Dürr AG August 08, 2024 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
1 Overview 2 Divisions 3 Financials 4 Outlook Agenda 5 Summary
Slide 4: Overview
1 Overview
Slide 5: Overview: Highlights Q2 2024
1. Overview: Highlights Q2 2024 Strong order intake and operational margin improvement ▪ Strong order intake in Q2 of € 1.3 bn leads to new record intake in H1 − Large automotive orders received; customers tend to award mid- to long- term projects at an early stage to secure capacities, pipeline con
Slide 6: KPI development H1 2024 vs. H1 2023
1. Overview: KPI development H1 2024 vs. H1 2023 Solid operational development in € m +8% H1 2023 H1 2024 Margin +9% 2,792 +7% 114 2,587 105 2,281 2,135 44 -33% 5.0% 58 4.9% 39 2.7% 1.7% -6 Incoming orders Sales revenues EBIT before Net profit Free cash flow extraord. effects ▪ Incoming orders drive
Slide 7: Record order intake in H1
1. Overview: Record order intake in H1 High book-to-bill ratio of 1.22 in H1 Book-to-bill Order intake Key aspects ▪ Large automotive projects booked +16.1% -12.5% ▪ Clean Technology Systems orders in Q2 higher than 1.44 last four quarters 1.36 ▪ Sequential growth of order intake in Production 1.10
Slide 8: Germany strong, Americas & Europe stable
1. Overview: Germany strong, Americas & Europe stable H1 order intake: established markets are gaining share in € m +8% ▪ Very large automotive order in Germany in Q1 2,792 ▪ Americas and Europe about stable 2,587 ▪ China with moderate decline from last year ▪ Asia declines due to large prior year p
Slide 9: Sustainability: Following the 1.5°C pathway
1. Sustainability: Following the 1.5°C pathway Dürr Group advancing fast on scope 1 and scope 2 targets Scope 1 and 2 emissions1 (in tCO2e): Highlights 2023 ▪ Investments in further PV systems in Germany, France and South Africa: self-generated electricity reaching ~3.9 million 60,000 -55% kWh in to
Slide 10: Sustainability: Improved ESG ratings
1. Sustainability: Improved ESG ratings Positive development in the last three years Rating agency Current rating Previous rating 80 out of 100 points 72 out of 100 points Platinum medal Gold medal Climate change: „B“ Climate change: „B“ Water security: „C“ Water security: „B-“ (Scale: A to D-) (Sca
Slide 11: Sustainability report 2023
1. Sustainability report 2023 Activities and targets 2023/24 www.durr-group.com © Dürr AG, Conference call – Q2 2024, August 08, 2024 11
Slide 12: Dürr Group sells Danish subsidiary Agramkow
1. Dürr Group sells Danish subsidiary Agramkow Agramkow ▪ World leading supplier of systems for filling refrigerators, air-conditioning systems, and heat pumps with refrigerant ▪ Sales of around €45 million in 2023 ▪ Enterprise value: €47 million Transaction details ▪ Sale of Agramkow Fluid Systems
Slide 13: Unlocking value through stronger focus
1. Dürr Group: Unlocking value through stronger focus Driving efficiency and maximizing synergy potential in a well-balanced structure As announced on June 4th Dürr Group. Sustainable. Automation. New Automotive Industrial Woodworking simplified structure PFS & APT PAS MPS LIB WMS Integration PFS an
Slide 14: Merging PFS and APT
1. Merging PFS and APT… Realignment creating better customer solutions and supports ‘Value before volume’ strategy …enhances customer proposition …and drives sales and margin ▪ Providing one face to the customer opportunities ▪ Offering an even better one-stop-shop ▪ Bundling further strengthens Dür
Slide 15: CTS – A success story
1. CTS – A success story CTS is the leading supplier in its field of environmental technology ▪ Dürr Group developed CTS into a global market CTS sales development last 9 years (€m) leader in the attractive market of thermal oxidation (exhaust-air purification technology) ▪ Market leading player in
Slide 16: Compelling rationale of focussed structure
1. Compelling rationale of focussed structure Creating win-win situation for all stakeholders Creates focused automation player with expertise in sustainability to drive profitable growth Focus on Contributes to achieving EBIT margin target of at least 8% benefiting from simplified structures and in
Slide 17: Divisions
2 Divisions
Slide 18: Paint and Final Assembly Systems
2. Divisions: Paint and Final Assembly Systems Order intake at high level – solid sales and margin development H1 H1 Q2 Q2 2024 2023 Δ 2024 2023 Δ Incoming orders in € m 1,050.9 1,007.5 4.3% 480.7 400.9 19.9% Sales revenues in € m 641.6 584.6 9.8% 338.8 317.0 6.9% EBIT in € m 32.7 28.8 13.4% 18.5 16
Slide 19: Application Technology
2. Divisions: Application Technology Record order intake in H1 2024 – strong EBIT growth H1 H1 Q2 Q2 2024 2023 Δ 2024 2023 Δ Incoming orders in € m 480.2 402.7 19.2% 218.0 175.5 24.2% Sales revenues in € m 319.1 297.8 7.1% 175.0 156.0 12.1% EBIT in € m 31.6 21.9 44.4% 16.4 12.1 35.0% EBIT margin in
Slide 20: Clean Technology Systems
2. Divisions: Clean Technology Systems High margins and ROCE H1 H1 Q2 Q2 2024 2023 Δ 2024 2023 Δ Incoming orders in € m 244.2 273.0 -10.5% 123.4 114.6 7.6% Sales revenues in € m 235.4 224.5 4.9% 121.3 123.7 -2.0% EBIT in € m 16.2 8.3 95.2% 10.0 7.1 41.2% EBIT margin in % 6.9 3.7 +3.2 ppts. 8.3 5.7 +
Slide 21: Industrial Automation Systems
2. Divisions: Industrial Automation Systems Delays in order intake affect sales and margins – momentum improving H1 H1 Q2 Q2 2024 2023 Δ 2024 2023 Δ Incoming orders in € m 340.0 255.0 33.3% 170.8 120.3 41.9% Sales revenues in € m 400.4 235.1 70.3% 199.9 121.9 64.1% EBIT in € m -2.0 3.3 - -5.1 5.8 -
Slide 22: Woodworking Machinery and Systems
2. Divisions: Woodworking Machinery and Systems Sales and margins decline as expected – stable order intake development H1 H1 Q2 Q2 2024 2023 Δ 2024 2023 Δ Incoming orders in € m 698.6 671.4 4.1% 321.3 318.8 0.8% Sales revenues in € m 705.9 816.7 -13.6% 358.9 412.9 -13.1% EBIT in € m 18.3 53.0 -65.6
Slide 23: Service business
2. Divisions: Service business Service sales remain stable sequentially – margins improve % of group sales Service sales in € m Key aspects Q2 ▪ Strong service business at Application Technology; continued 29.8 29.1 solid service development at HOMAG 27.8 27.3 28.1 26.9 ▪ Service margin further impr
Slide 24: Financials
3 Financials
Slide 25: Overview of key financial indicators
3. Financials: Overview of key financial indicators H1 2024 H1 2023 Δ Q2 2024 Q2 2023 Δ Sales revenues in € m 2,281.3 2,134.9 6.9% 1,182.9 1,120.2 5.6% Gross profit on sales in € m 490.2 495.8 -1.1% 247.9 264.2 -6.2% Gross margin in % 21.5 23.2 -1.7 ppts. 21.0 23.6 -2.6 ppts. EBITDA in € m 160.1 149
Slide 26: Revenue growth on track
3. Financials: Revenue growth on track Sales revenues in € m Key aspects Q2 +5.6% +7.7% ▪ Year-on-year growth of 5.6% despite decline at HOMAG ▪ China losing share as activities in other regions increase Sales per region H1 2024 1,328 +0 pp. 1,120 1,164 1,183 -3 pp. 1,098 Germany 1,015 16% 15% +1 pp
Slide 27: EBIT margin before extraordinary effects improves
3. Financials: EBIT margin bef. e. e.* improves EBIT margin bef. e. e.* in % EBIT bef. e. e.* in € m Key aspects Q2 ▪ Gross profit up in automotive and Clean Technology Systems 7.1 7.0 ▪ Extraordinary effects increased due to higher PPA effects and capacity adjustments at production automation (syne
Slide 28: Solid free cash flow generation
3. Financials: Solid free cash flow generation Free cash flow in € m Key aspects Q2 ▪ Strong prepayments and solid NWC management overcompensate higher capex and interest payments ▪ Cash outflow from HOMAG redundancy payments to come largely in H2 121 44 -21 44 25 19 50 15 35 -23 0 -50 22 -6 -13 Q1
Slide 29: Net working capital improved
3. Financials: Net working capital improved in € m DWC NWC Key aspects Q2 48 ▪ High prepayments received, overcompensating increase in 44 receivables and decline in trade payables ▪ Inventories and contract assets reduced 38 36 34 42 ▪ DWC below low end of target range in € m 06/30/2024 12/31/2023 0
Slide 30: Net debt increased due to dividends
3. Financials: Net debt increased due to dividends in € m Gearing Net financial status Key aspects Q2 ▪ Dividend payment of € 49 m 33% 31% 29% 31% ▪ Net financial status includes € 111.3 m leasing liabilities 10% 0% ▪ Leverage with 1.6x well below own limit of at most 2.0x -4 -120 ▪ Proceeds from Ag
Slide 31: Comfortable liquidity headroom
3. Financials: Comfortable liquidity headroom Schuldschein tranches of € 135 m repaid in July after reporting date in € bn Maturity profile as of June 30, 2024 (financial instruments only) in € m 2.0 1.75 250 1.5 200 0.75 150 1.0 100 0.5 0.82 0.17 50 0.0 0.19 0 Available funds Financial liabilities
Slide 32: Outlook
4 Outlook
Slide 33: Strong fundamental demand drivers
4. Outlook: Strong fundamental demand drivers Our solutions help our customers achieve efficient and sustainable production Sustainable production Energy and resource efficiency Key Enabling sustainable products for a zero CO2 society demand drivers Electric vehicles (EVs), wooden houses, alternativ
Slide 34: Guidance 2024
4. Outlook: Guidance 2024 All targets confirmed Actual 2023 Targets 2024 Incoming orders in € m 4,615.5 4,600 – 5,000 Sales revenues in € m 4,627.3 4,700 – 5,000 EBIT margin before extraordinary effects in % 6.1 4.5 – 6.0 EBIT margin in % 4.1 3.5 – 5.0 Earnings after taxes in € m 110.2 90 – 150 ROCE
Slide 35: Breakdown of 2024 guidance by division
4. Outlook: Breakdown of 2024 guidance by division Order intake Sales revenues EBIT margin (in %) (in € m) (in € m) before e.e.* 2023 Targets 2024 2023 Targets 2024 2023 Targets 2024 Paint and Final Assembly Systems 1,476 1,450 – 1,600 1,364 1,400 – 1,500 5.1 6.0 – 7.0 Application Technology 720 600
Slide 36: Mid-cycle targets confirmed
4. Mid-cycle targets confirmed More than € 6 billion sales targeted in 2030 5% - 6% ≥ 8% ≥ 25% CAGR sales revenues EBIT margin before ROCE extraordinary effects www.durr-group.com © Dürr AG, Conference call – Q2 2024, August 08, 2024 36
Slide 37: Summary
5 Summary
Slide 38: Summary Q2 2024
5. Summary ▪ Strong order intake driven by automotive customers securing capacities ▪ Revenue growth on track; consolidation of BBS Automation and organic growth in all other divisions more than compensated HOMAG decline ▪ EBIT margin before extraordinary effects improved driven by strong margins at
Slide 39: Appendix
Appendix www.durr-group.com
Slide 40: Update ROCE definition
Update ROCE definition Updated definition of KPI with respect to operational performance and steering model Rationale Previous approach New definition ▪ Better positioning as operational KPI, ▪ Based on EBIT reported on a year-to- ▪ Based on EBIT before extraordinary avoiding impacts from extraordin
Slide 41: P&L in detail
P&L in detail in € m H1 2024 H1 2023 Δ Q2 2024 Q2 2023 Δ Sales revenues 2,281.3 2,134.9 6.9% 1,182.9 1,120.2 5.6% Cost of sales -1,791.1 -1,639.1 9.3% -935.0 -856.0 9.2% Gross profit on sales 490.2 495.8 -1.1% 247.9 264.2 -6.2% Selling expenses -209.7 -207.3 1.2% -106.7 -109.9 -2.9% General administ
Slide 42: Balance sheet highlights (1/2)
Balance sheet highlights (1/2) 06/30/2024 12/31/2023 06/30/2023 Non-current assets 1,915.4 1,916.3 1,472.6 of which goodwill and intangibles 1,066.1 1,088.8 714.4 of which property, plant and equipment 670.9 655.2 596.6 of which investment and financial assets 43.4 45.5 43.9 Current assets 3,270.8 3
Slide 43: Balance sheet highlights (2/2)
Balance sheet highlights (2/2) Equity and Liabilities in € m 06/30/2024 12/31/2023 06/30/2023 Total equity 1,163.8 1,177.0 1,126.6 of which non-controlling interests 6.5 7.1 5.2 Non-current liabilities 1,464.9 1,225.3 1,222.4 of which provisions 57.2 60.9 56.9 of which bond and Schuldschein loans 1,
Slide 44: Cash flow
Cash flow in € m H1 2024 H1 2023 Q2 2024 Q2 2023 EBT 59.4 86.2 30.0 53.9 Depreciation and amortization of non-current assets 80.3 58.0 40.3 29.8 Interest result 19.9 6.2 10.3 1.0 Income taxes paid -35.7 -35.8 -27.2 -24.9 Δ Provisions -2.9 -12.6 -2.9 -8.0 Δ Net working capital 62.0 12.1 49.0 3.7 Othe
Slide 45: Financial figures by division (1/2)
Overview: Financial figures by division (1/2) 2024 2023 2022 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Incoming orders in € m 570.2 480.7 1,050.9 606.6 400.9 258.7 209.9 1,476.0 426.6 317.8 481.9 328.0 1,554.4 Sales revenues in € m 302.9 338.8 641.6 267.6 317.0 351.0 428.0 1,363.6 232.6
Slide 46: Financial figures by division (2/2)
Overview: Financial figures by division (2/2) 2024 2023 2022 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Incoming orders in € m 377.3 321.3 698.6 352.6 318.8 296.6 427.4 1,395.5 573.8 457.0 386.8 288.2 1,705.8 Sales revenues in € m 347.0 358.9 705.9 403.8 412.9 405.5 402.8 1,625.1 366.8 41
Slide 47: Overview: extraordinary effects
Overview: extraordinary effects in € m 2024 2023 2022 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total PFS -1.0 -1.7 -2.7 -0.6 1.0 -0.1 -2.0 -1.7 -0.6 -0.7 -0.5 -2.3 -4.1 thereof PPA -1.0 -1.0 -2.0 -0.6 -0.6 -0.6 -0.5 -2.3 -0.6 -0.6 -0.6 -0.6 -2.4 APT -0.1 -0.1 -0.2 -0.1 -0.4 -0.1 -0.1 -0.6 0.1
Slide 48: Shareholder structure
Shareholder structure Free float at 70.3%1 Heinz Dürr GmbH, Berlin Heinz und Heide Dürr Stiftung, Berlin 2 Institutional and private investors, including 26,2% ▪ Candriam : 3.05% ▪ Harris Associates Investment: 3.02% ▪ Harris Associates L.P.: 3.02% ▪ Members of the Dürr AG Supervisory Board: 0.12% ▪
Slide 49: Financial calendar
Financial calendar August 2024 September 2024 ▪ 08/08/2024 Interim statement for the second quarter of 2024 ▪ 09/04/2024 Commerzbank & ODDO BHF Corporate ▪ 08/27/2024 BofA Virtual Conference Conference, Frankfurt ▪ 09/05/2024 Morgan Stanley Industrials CEO Conf., London ▪ 09/10/2024 UBS Quo Vadis In
Slide 50: Results January to June
Results January to June 2024 Dürr Aktiengesellschaft Carl-Benz-Straße 34 74321 Bietigheim-Bissingen Dr. Jochen Weyrauch, CEO of Dürr AG Germany Dietmar Heinrich, CFO of Dürr AG August 08, 2024 Bietigheim-Bissingen www.durr-group.com
Dürr Aktiengesellschaft — Q2 2024 Earnings Presentation on 6ix