Draegerwerk AG & Co. KGaA · XETR:DRW8
Draegerwerk AG & Co. KGaA — Drägerwerk AG & Co. KGaA — FY2015 Earnings Presentation
41 slides from Draegerwerk AG & Co. KGaA's earnings presentation, Mar 9, 2016
Slide 1: Drägerwerk AG & Co. KGaA Analyst Conference 2016
Drägerwerk AG & Co. KGaA Analyst Conference 2016 Frankfurt, 09. März 2016
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer of securities for sale or a solicitation of an offer to purchase any securities. No money, securities or other consideration is being solicited by this presentation. This presentation contains forward-looking statements regarding the future d
Slide 3: Highlights, Financials, Fit for Growth, Outlook
HIGHLIGHTS FIT FOR GROWTH FINANCIALS OUTLOOK
Slide 4: Curriculum vitae: Rainer Klug
Curriculum vitae Personal information: • Born: May 5, 1968, Goslar, Germany • Marital status: married • Engineering / Factory automation, Dipl. Ing. Career: • KSB AG, Frankenthal • Baumer Group AG, Frauenfeld/Schweiz • Giesecke und Devrient GmbH, München RAINER KLUG REGION AMERICAS EXECUTIVE BOARD M
Slide 5: Curriculum vitae: Dr. Reiner Piske
Curriculum vitae Personal information: • Born: April 12, 1970, Hoyerswerda, Germany • Marital status: married, two children • Industrial engineering, Dipl. Ing. Career: • REHAU AG & Co., Rehau • REHAU Pte. Ltd., Singapur • Groz-Beckert KG, Albstadt DR. REINER PISKE REGION EUROPE CHIEF HUMAN RESOURCE
Slide 6: 2015 Net Sales strongly supported by FX
2015 Net Sales strongly supported by FX Business Development Dräger Group Net Sales (in EUR million) Highlights Sales increase in line with expectations: +2.9% Currency net sales of EUR 2,609; +2.9% cc adjusted 7.3% 2.6% High one-off costs in Q3 (EUR ~20m) EBIT- +7.2% EBIT- Margin Nominal Margin Str
Slide 7: Order Entry lagged behind Net Sales
Order Entry lagged behind Net Sales Net Sales Order Entry Group Group Medical Safety +7.0% MEAO* 219 -0.2% +2.7% -8.4% +1.9% Asia/Pacific 426 -0.8% -2.1% +2.0% -1.1% Americas 497 -1.3% 0.0% -4.4% +4.0% Europe 1,356 +2.2% +1.3% +3.6% +2.9% Group 2,416 +0.8% +0.6% +1.3% Order Entry in EUR million, yoy
Slide 8: Dräger is facing a challenging macro environment and increasing customer demands
Dräger is facing a challenging macro environment and increasing customer demands Cyclical challenges Structural challenges Volatile demand Proof of clinical growth from value combined emerging markets with economic value for customers Significant decline in investment- Concentration and activity fro
Slide 9: Dräger has the right business model to face these challenges
Dräger has the right business model to face these challenges … High High diversity diversity of business of customers mechanics No single No single customer product >1% >3% of net sales of net sales 9
Slide 10: … but recent execution was insufficient
… but recent execution was insufficient Performance Average in the last realized 3 years growth fell Gross-Profit short of Margin Expenses expectations declined grew above the rate of sales growth Internal root Too much focus on internal topics Causes: Unclear responsibilities and accountability Cos
Slide 11: We are addressing these root causes with a new organizational set up
We are addressing these root causes with a new organizational set up What we are changing What we will achieve New regional structure with consolidation Empowerment of local entities to fully serve of number of regions from 7 to 6 customers in order to strengthen accountability for our results: The
Slide 12: Empowerment along the future structure of three regions
Empowerment along the future structure of three regions with three accountable board members Regional setup Full regional business responsibility is assigned to West & East Europe three board members Germany & additionally to their current role Austria/Switzerland Dr. Reiner Piske Strategic importan
Slide 13: FIT FOR GROWTH is being intensified for better execution and quicker cost savings
FIT FOR GROWTH is being intensified for better execution and quicker cost savings SHAPE 1 Improve SG & A expense ratio Optimize global Sales, FIT FOR Global 3 and Marketing & working capital Administration GROWTH footprint set-up Optimize production NEW set-up Improve workflow and FIT! delivery time
Slide 14: SHAPE was redesigned to deliver shorter term cost savings
SHAPE was redesigned to deliver shorter term cost savings and higher execution capabilities Focus on Focus on medium-term turnaround improvements phase SHAPE NEW 1 Optimize global Sales, Marketing & Administration set-up Continue to harmonize ERP landscape and standardize back-office & logistic proc
Slide 15: SHAPE: 250 measures to be implemented over the next 2 years
SHAPE: 250 measures have been defined that will be implemented over the next 2 years Focus on Lean Right sizing of administration functions turnaround set-up Reduction of internal services phase Increase Shared services / shared resources SHAPE 1 Streamlining of regional & country structure Optimize
Slide 16: Faster. Connected. Innovative.
FIT! Taking a holistic approach to optimize Innovation Faster. Connected. Innovative. Speed and agility Connect and network Customer delight Bring customer value Connect and innovate Continuously create and faster to market globally launch innovation Reduce complexity Utilize and participate in Put
Slide 17: FIT! Overview Initiatives
FIT! Overview Initiatives What we have achieved Deliverables New C&D structure 23 launches new products and enhancements is implemented incl. system functionality, with reduced expenses compared to 2015 Bundling of our system competencies in one Center of Competence to explore synergies Continue to
Slide 18: Example: Infinity Mview – Innovative. Connected. Faster.
FIT! Example: Infinity® Mview – Innovative. Connected. Faster. Use any mobile device Big number displays to stay connected to your support high visibility patients Innovative. Connected. Integrated 10 minutes full-disclosure “Follow-Me” function ZZZZZZ immediately links the caregivers to Observe you
Slide 19: Global Footprint Achievements
GLOBAL FOOTPRINT Achievements Transfer of production with high labor content to Chomutov, Czech Rep. Completed Q2 2016 – Transfer production lines for masks, protective clothing and others Closure of site in Pittsburgh, USA – Existing production lines (gas detection devices) Completed will be transf
Slide 20: Financials
Drager FINANCIALS
Slide 21: Business development Dräger Group
Business development Dräger Group Net Sales Order entry Q4 cc -6.9% Book to bill 0.97 +4.4% +2.9% Currency Currency 12M Net of adjusted adjusted 2,608.9 order entry Change currency in € million in % effects in % 2,434.7 Europe +2,6 +2,2 825.4 Americas +7,7 - 1,3 769.7 Asia-Pacific +8,4 - 0,8 MEAO* +
Slide 22: Key Figures Dräger Group
Key Figures Dräger Group 12M 2014 12M 2015 Change million € million € % Cashflow from operating activities 188.0 39.9 -78.8 Investments 124.7 196.8 57.8 1 Cash and cash equivalents 296.9 172.8 -41.8 1 Net financial debt 10.7 145.3 >100 1 2 0.04 0.96 Net financial debt /EBITDA 1 Capital employed 1,10
Slide 23: Business development Medical division
Business development Medical division Net Sales Order entry Q4 cc -7.7% +3.9% +3.1% Currency Currency Book to bill 0.97 adjusted adjusted 1,698.8 12M Net of Order Entry Change currency 550.6 in € million in % effects in % 1,577.2 514.1 Europe +1,6 +1,3 Americas +8,5 +0,0 Asia-Pacific +7,6 - 2,1 Q4‘1
Slide 24: Business development Safety division
Business development Safety division Net Sales Order entry Q4 cc -5.3% +5.3% +2.7% Currency Currency Book to bill 0.97 adjusted adjusted 910.1 12M Net of 857.5 Order Entry Change currency 274.8 in € million in % effects in % 255.7 Europe +4.2 +3.6 Americas +6.1 - 4.4 Asia-Pacific +10.0 +2.0 Q4‘14 Q4
Slide 25: New reporting structure Regions and Segments
New reporting structure Regions and Segments Africa, Asia, Europe Americas Australia Dräger Group Order intake € million Medical € million Safety € million Net sales € million Medical € million Safety € million EBITDA € million EBIT € million Investments € million Capital employed € million DVA € mi
Slide 26: Outlook
Drager OUTLOOK
Slide 27: Dividend proposal 2015
Dividend proposal 2015 2014 (in EUR million) 2015 (in EUR million) Net profit* 104.7 33.3 Dividend 31.6 3.7 Participation certificates** 8.2 0.9 Common shares 13.5 1.3 Preferred shares 9.9 1.4 Net payout ratio 30.1% 10.9% Dividend per common share preferred share Dividend policy 1.39 € Until earning
Slide 28: Outlook
Outlook 2015 2016e 2017e Net Sales + 2.9% 0.0% – 3.0% Slight increase (net of currency effects) (net of currency effects) compared to prior year (net of currency effects) EBIT margin 2.6% 3.5% – 5.5%* improvement* Gross profit margin 44.9% Below prior year Cash flow from 59.8% > 60% operational acti
Slide 29: Questions & Answers
Questions & Answers Drager ee. ‘« 29 Drager. Technik ftir das Leben®
Slide 30: Appendix
Appendix Drager
Slide 31: Dräger management
Dräger management Gert-Hartwig Stefan Dräger Rainer Klug Dr. Reiner Piske Anton Schrofner Lescow Chairman of the Executive Executive Board member Executive Board member Chief Human Resources Executive Board member Board for Finance and IT (Chief for Purchasing, Production Officer for R&D, IP, Qualit
Slide 32: Profiles of the new board members
Profiles of the new board members 32
Slide 33: Guidance 2016
Guidance 2016 Results achieved in 2015 Forecast 2016 +2.9% Between 0 - 3% Net sales (net of currency effects) (net of currency effects) 1 EBIT margin 2.6% Between 3.5 - 5.5% Dräger Value Added EUR -46.3 million improvement Other forecast figures: Gross margin 44.9% below prior year Research and deve
Slide 34: Business development Dräger Group
Business development Dräger Group Q4 2014 Q4 2015 Change 12M 2014 12M 2015 Change € million € million % € million € million % Order Intake 672.1 637.2 -5.2 1 2,415.5 2,532.2 4.8 1 Net Sales 769.7 825.4 7.2 1 2,434.7 2,608.9 7.2 1 Gross Profit 364.6 378.1 3.7 1,138.0 1,171.7 3.0 Gross margin 47.4% 45
Slide 35: Business development Medical and Safety division
Business development Medical and Safety division Medical Division Q4 2014 Q4 2015 Change 12M 2014 12M 2015 Change € million € million % € million € million % Order Intake 437.1 411.0 -6.0 1 1,569.8 1,646.0 4.9 1 Net Sales 514.1 550.6 7.1 1 1,577.2 1,698.8 7.7 1 EBIT 71.8 55.3 -23.0 107.6 46.2 -57.1
Slide 36: Functional Expenses
Functional Expenses Change Q4 2014 Q4 2015 Change 12M 2014 12M 2015 Change FX adj. € million € million % € million € million % % R&D 56.6 56.2 -0.8 -212.0 -231.1 -9.0 -3.7 % of Net Sales 7.4% 6.8% -8.7% -8.9% SG&A 206.7 250.8 21.4 -749.2 -861.2 -15.0 -10.7 % of Net Sales 26.9% 30.4% -30.8% -33.0% Fu
Slide 37: Consolidated balance sheet
Consolidated balance sheet Assets 31 Dec 2014 31 Dec 2015 Change € million € million % Intangible assets 294.2 351.8 19.6 Property, plant and equipment 349.9 406.4 16.1 Other non-current assets 137.3 149.0 8.6 Non-current assets 781.5 907.2 16.1 Inventories 388.5 402.0 3.5 Trade receivables 657.4 71
Slide 38: Consolidated balance sheet
Consolidated balance sheet Equity and liabilities 31 Dec 2014 31 Dec 2015 Change € million € million % Equity 896.6 945.9 5.5 Liabilities from participation certificates 20.9 21.8 4.3 Provisions for pensions and similar obligations 297.0 288.1 -3.0 Non-current interest-bearing loans 168.6 138.1 -18.
Slide 39: Cash-flow statement
Cash-flow statement 12M 2014 12M 2015 Change € million € million % Group net profit 104.7 33.3 -68.2 Change in inventories -1.2 -5.4 >-100 Change in accounts receivables 1.6 -44.6 >-100 Change in accounts payables 25.2 -22.8 >-100 Depreciation and amortization 77.0 84.2 9.4 Other operating cash flow
Slide 40: Financial calendar
Financial calendar March 9, 2016 - Accounts press conference, Lübeck - Analysts meeting, Frankfurt April 26, 2016 - Report for the first three months 2015 Conference call, Lübeck April 27, 2016 - Annual shareholders' meeting, Lübeck July 28, 2016 - Report for the first six months 2015 Conference cal
Slide 41: 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
Drägerwerk AG & Co. KGaA — FY2015 Earnings Presentation on 6ix