Draegerwerk Ag & Co. Kgaa · XETR:DRW8

Draegerwerk Ag & Co. Kgaa — Drägerwerk AG & Co. KGaA — FY2016 Earnings Presentation

33 slides from Draegerwerk Ag & Co. Kgaa's earnings presentation, Mar 8, 2017

  1. Slide 1: Analyst's Conference Drägerwerk AG & Co. KGaA

    Worldwide. On Site. Analyst‘s Conference Drägerwerk AG & Co. KGaA Lübeck, March 8, 2017

  2. Slide 2: Overview Group and Regions, Financials, Fit for Growth, Outlook

    OVERVIEW GROUP AND REGIONS FINANCIALS FIT FOR GROWTH OUTLOOK

  3. Slide 3: Overview Group and Regions

    Drager Urdger OVERVIEW GROUP AND REGIONS Weltweit. Vor Ort.

  4. Slide 4: Business development Dräger Group

    Strong EBIT improvement despite disappointing net sales Business development Dräger Group Net Sales (in EUR million) Highlights  Order intake +2.1% cc, but disappointing -1.5% Currency net sales development with a decline of 2.6% adjusted 5.4% 1.5% cc. EBIT- -3.3% EBIT- Margin Nominal Margin  Stro

  5. Slide 5: Order development Dräger Group

    Positive order intake in all regions Order development Dräger Group Order entry (in EUR million) Group Medical Safety Net Sales America 515 +7.2% +7.2% +7.1% +2.1% Africa, Asia, +3.7% -5.8% -5.1% 641 +0.9% Australia Europe 1,383 +0.9% +0.7% +1.1% -1.1% Group 2,539 +2.1% +2.9% +0.7% -1.5% Growth rate

  6. Slide 6: Regional responsibilities

    New regional setup increases execution capabilities Regional responsibilities Regional setup  Full regional business Europe responsibility is assigned to three board members in addition to their functional Dr. Reiner Piske role. Americas  Strategic importance of three direct reporting countries is

  7. Slide 7: Business development Americas

    Business development Americas Order Entry Net Sales Comments +7.2% +2.1%  Order intake Q4 (FX Currency Currency adjusted): +12.4% 497 adjusted 515 509 adjusted 504  Order growth in North America, as well as Central-, South-America.  Gross profit margin: 2015 2016 2015 2016 +1.6pp yoy EBIT  Funct

  8. Slide 8: Business development Europe

    Business development Europe Order Entry Net Sales Comments  Order intake Q4 (FX +0.9% -1.1% adjusted): +3.1% 1,391 Currency 1,383 1,421 Currency 1,384 adjusted adjusted  Strong top line growth in Germany, Switzerland, Russia  Large Orders from Swiss 2015 2016 2015 2016 Rail and UKSH Lübeck.  Gro

  9. Slide 9: Business development Africa, Asia, Australia

    Business development Africa, Asia, Australia Order Enty Net Sales Comments +0.9% -5.1%  Order intake Q4 (FX Currency Currency adjusted): +21.8% 645 adjusted 641 679 adjusted 636  Strong decline in the Middle East, driven by low oil price and public budget restraints.  Strong demand in India. 2015

  10. Slide 10: Financials

    Drager FINANCIALS

  11. Slide 11: Business development Dräger Group

    Business development Dräger Group Net Sales Comments +0.7% -1.5%  Order intake (FX adjusted) Currency Currency Q4 FY adjusted 2.608,9 adjusted Medical +9.0% +2.9% 2.523,8 Safety +9.4% +0.7% Group +9.1% +2.1% 825,4 819,5  Orders on hand ~+5% cc  Gross profit margin Q4‘15 Q4‘16 FY15 FY16 12M 45.0%

  12. Slide 12: Functional Expenses

    Functional Expenses Dräger Group 12M 2015 12M 2016 Change Change net of FX and restructuring € million € million % % R&D -231.1 -219.0 -5.2 -4.8 % of Net Sales -8.9% -8.7% Sales & Marketing -611.0 -554.7 -9.2 -8.2 % of Net Sales -23.4% -22.0% Administration -250.2 -207.4 -17.1 -7.6 % of Net Sales -9

  13. Slide 13: Key Figures

    Key Figures Dräger Group 12M 2015 12M 2016 Change € million € million % Cashflow from operating activities 39.9 195.3 >100 Investments 196.8 99.9 -49.2 Cash and cash equivalents 1 172.8 221.5 28.2 Net financial debt1 145.3 34.7 -76.1 Net financial debt 1 /EBITDA 2 0.96 0.16 Capital employed 1 1,269.

  14. Slide 14: Business development regions and products

    Business development regions and products Dräger Group Medical products Safety products 2016 Change 2016 Change € million % (FX adj.) € million % (FX adj.) Order entry 1,662.6 2.9 876.1 0.7 Europe 835.8 0.7 546.7 1.1 America 359.5 7.2 155.5 7.1 Africa, Asia, Australia 467.2 3.7 174.0 -5.8 Net Sales

  15. Slide 15: Dividend proposal for FY 2016

    Dividend proposal for FY 2016 2015 (in EUR million) 2016 (in EUR million) Net profit* 33.3 81.7 Dividend 3.7 3.7  Participation certificates** 0.9 0.9  Common shares 1.3 1.3  Preferred shares 1.4 1.4 Net payout ratio 10.9% 4.5% Dividend per common share preferred share Dividend policy 0.19 € 0.19

  16. Slide 16: Fit for Growth

    Drager FIT FOR GROWTH

  17. Slide 17: Fit for Growth is on track and delivering results

    FIT FOR GROWTH is on track and delivering results 2016 2017 1 SHAPE 3 Improve SG & A Optimize global Sales, FIT FOR Global expense ratio Marketing & Administration GROWTH footprint set-up Optimize production set-up Improve workflow and 2 FIT! delivery times and reduce Optimize production cost innova

  18. Slide 18: Short term cost savings show positive impact

    SHAPE Short term cost savings show positive impact Measures for shorter term cost savings: ...  ~70% of the 250 measures Continue strict expense implemented management and  ~700 headcount implementation of the reduction vs. ~350 remaining ~30% cost New organizational set originally planned cutting

  19. Slide 19: All milestones and savings achieved

    Global Footprint All milestones and savings achieved Closure our Pittsburgh site and relocation of ... Transfer of production activities to predominantly lines with high labor Houston and Telforth. content to our Major measures of the production site in the  annual savings of ~3m€ project completed

  20. Slide 20: Innovation organization is implementing FIT! measures

    FIT! Innovation organization is implementing FIT! measures Merger of segment- and product ... management into the innovation Continue to focus on Time to organization Market target achievement  increase speed After 2 years of intense Transfer of goals and  reduce complexity reshaping the innovatio

  21. Slide 21: Selection of new products 2016

    Faster. Connected. Innovative. Selection of new products 2016 MEDICAL SAFETY Mview® BabyFlow® Plus Alcotest Dräger Röhrchen Neu 2x Infinity Delta® Integr. Care Mgmt Pointgard® 2000 Dräger Flame 2xx0 (SW Lösung) (SW Update) Babyleo® Doppelsensor XXS Regard® 7000 Gasmesscontroller Regard® 7000 Babyleo

  22. Slide 22: Outlook

    Drager OUTLOOK

  23. Slide 23: Outlook

    Outlook 2016 guidance 2016 2017e Net Sales 0.0 % – 3.0 % - 1.5 % 0.0 % – 3.0 % (net of currency effects) (lower end) EBIT margin 3.5 % – 5.5 % 5.4 % 5.0 % – 7.0 %* Gross profit margin Below prior year 45.0 % 44.0 – 46.0 % (2015: 44.9 %) Dräger Value Added Improvement EUR 49.8m EUR 40m – 90m (2015: E

  24. Slide 24: Questions & Answers

    Questions & Answers Drager 24 Drager. Technik fiir das Leben®

  25. Slide 25: Appendix

    Appendix Drager

  26. Slide 26: Financial calendar 2017

    Financial calendar 2017 March 8, 2017 - Accounts press conference, Lübeck - Analysts meeting May 4, 2017 - Report for the first three months 2017 Conference call, Lübeck May 10, 2017 - Annual shareholders' meeting, Lübeck July 27, 2017 - Report for the first six months 2017 Conference call, Lübeck N

  27. Slide 27: Guidance 2017

    Guidance 2017 2016 Forecast 2017 -1.5% 0.0 - 3.0% Net sales (net of currency effects) (net of currency effects) EBIT margin 5.4% 5.0 - 7.0%1 Dräger Value Added EUR 49.8 million EUR 40 - 90 million Other forecast figures: Gross margin 45.0% 44.0 - 46.0 % Research and development costs EUR 219 million

  28. Slide 28: Group Business Development

    Business Development Group Q4 2015 Q4 2016 Change 12M 2015 12M 2016 Change € million € million % € million € million % Order Intake 637.2 689.6 8.2 2,532.2 2,538.7 0.3 Net Sales 825.4 819.5 -0.7 2,608.9 2,523.8 -3.3 % growth 7.2% -0.7% 7.2% -3.3% % growth (FX adjusted) 4.4% 0.7% 2.9% -1.5% Gross Pro

  29. Slide 29: Segments Business Development

    Business Development Segments 2012 2013 2014 2015 2016 SEGMENT EUROPE 1 Order Entry € million 1,396.8 1,322.4 1,357.0 1,391.0 1,382.5 Net Sales 1 € million 1,367.8 1,333.5 1,362.2 1,420.7 1,384.3 EBIT € million 142.4 131.2 128.5 59.4 84.5 EBIT margin % 10.4 9.8 9.4 4.2 6.1 SEGMENT AMERICA 1 Order En

  30. Slide 30: Cash-flow statement

    Cash-flow statement 12M 2015 12M 2016 Change € million € million % Group net profit 33.3 81.7 >100 Change in inventories -5.4 17.4 >100 Change in receivables -44.6 31.3 >100 Change in payables -22.8 -10.2 55.0 Depreciation and amortization 84.2 85.8 1.9 Other operating cash flow items -4.8 -10.6 >-1

  31. Slide 31: Consolidated balance sheet (assets)

    Consolidated balance sheet 31 Dec 2015 31 Dec 2016 Change € million € million % Intangible Assets 351.8 347.6 -1.2 Property, plant and equipment 406.4 420.9 3.6 Other noncurrent assets 149.0 150.1 0.7 Noncurrent assets 907.2 918.6 1.3 Inventories 402.0 386.8 -3.8 Trade receivables 711.3 681.7 -4.2 O

  32. Slide 32: Consolidated balance sheet (equity and liabilities)

    Consolidated balance sheet 31 Dec 2015 31 Dec 2016 Change € million € million % Equity 945.9 1,003.5 6.1 Liabilities from participation certificates 21.8 22.7 4.2 Provisions for pensions and similar oblig 288.1 318.3 10.5 Noncurrent interest bearing loans 138.1 188.6 36.6 Other noncurrent liabilitie

  33. Slide 33: Contact

    Contact Melanie Kamann Thomas Fischler Corporate Communications Investor Relations Drägerwerk AG & Co. KGaA Drägerwerk AG & Co. KGaA Moislinger Allee 53−55 Moislinger Allee 53−55 23558 Lübeck, Germany 23558 Lübeck, Germany Tel +49 451 882-3998 Tel +49 451 882-2685 Fax +49 451 882-3944 Fax +49 451 88

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