Durr Ag · XETR:DUE

Durr — H1 2011 Earnings Presentation

28 slides from Durr's earnings presentation, Aug 4, 2011

  1. Slide 1: Welcome to the conference call: Results January - June 2011

    Welcome to the conference call Dürr AG Results January - June 2011 Dürr Group Ralf Dieter, CEO Ralph Heuwing, CFO Bietigheim-Bissingen, August 4, 2011

  2. 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

  3. Slide 3: Agenda

    Agenda ƒ H1 figures ƒ China expansion ƒ Summary Dürr AG © CCI, Conference Call H1 2011, August 4, 2011 -3-

  4. Slide 4: Strong momentum in Q2

    Strong momentum in Q2 H1 2011 H1 2010 Δ Q2 2011 Q2 2010 Δ in € m Incoming orders 1,200.4 737.1 62.9% 643.4 374.9 71.6% Sales revenues 783.5 517.9 51.3% 424.9 287.6 47.7% Orders on hand (06/30) 1,746.9 1,261.4 38.5% 1,746.9 1,261.4 38.5% ƒ Incoming orders in Q2 +72% (YOY) ƒ Sales in Q2 +48% (YOY) and

  5. Slide 5: Incoming orders over the last 4 quarters: € 2.1 bn

    Incoming orders over the last 4 quarters: € 2.1 bn in € m 700 643 34 600 557 542 21 26 159 500 165 144 Clean Technology 362 375 364 Systems 400 339 339 22 17 13 Measuring and 298 9 18 Process Systems 300 15 101 450 59 101 152 Paint and Assembly 80 Systems 208 371 187 66 15 200 6 372 271 64 241 94 25

  6. Slide 6: Incoming orders January-June 2011 vs. 2010

    Incoming orders January-June 2011 vs. 2010 in € m 1400 1,400 +63% ƒ Germany: 2010 2011 Smaller revamp 1200 1,200 1,200.4 and modernization projects 1000 1,000 ƒ Europe: Recovery in most 800 countries (e.g. Hungary, Italy, UK, 737.1 Russia, Serbia) 600 ƒ China: +99% +16% High level of last 400 +104%

  7. Slide 7: Healthy regional split

    Healthy regional split Incoming orders Incoming orders Sales revenues H1 2011 (H1 2010) H1 2011 (H1 2010) H1 2011 (H1 2010) 13.7% 17.0% (15.5%) 27.5% (19.5%) 25.0% (35.3%) (19.5%) Mature markets Emerging markets* 44% (39%) 56% 11.4% 26.7% 9.3% (61%) (8.9%) (21.7%) (11.2%) 25.6% (25.6%) 23.2% 20.6% (

  8. Slide 8: Strong earnings trend in Q2

    Strong earnings trend in Q2 H1 2011 H1 2010 Δ in € m Gross profit on sales 140.3 101.4 38.4% EBITDA 42.1 10.4 304.8% EBIT 32.6 1.1 - Net income 16.0 -13.4 - ƒ Strong Q2 gross margin at 18.6%; might get somewhat weaker in H2 due to cost increases ƒ EBIT improved from € 9.2 m (Q1) to € 23.5 m (Q2) ƒ M

  9. Slide 9: Moderate NWC increase impacts cash flow in H1 2011

    Moderate NWC increase impacts cash flow in H1 2011 Cash flow/free cash flow H1 2011 H1 2010 in € m EBT 23.7 -9.3 Depreciation and amortization of non-current assets 9.5 9.3 Interest result 9.3 10.5 Income taxes paid -4.3 -10.1 ∆ Provisions 0.8 -3.1 ∆ Net working capital -33.2 8.4 Other -30.9 -7.9 Ca

  10. Slide 10: NWC: Increase due to business expansion

    NWC: Increase due to business expansion 06/30/2011 12/31/2010 06/30/2010 NWC in € m 63.0 27.3 51.2 DWC (Days Working Capital) 14.5 7.8 17.8 DSO (Days Sales Outstanding) 113.9 112.2 111.2 ƒ NWC increase along with business volume especially at Measuring and Process Systems ƒ Some further NWC buildup

  11. Slide 11: WIP and progress billings: High prepayments

    WIP and progress billings: High prepayments 06/30/11 12/31/10 06/30/10 in € m Assets Work in process from contracts (WIP) 844.7 700.9 682.2 Progress billings -570.7 -491.6 -514.5 1 WIP in excess of billings 274.0 209.3 167.7 Liabilities Work in process from contracts (WIP) -742.6 -552.5 -390.6 Progr

  12. Slide 12: WIP and progress billings: High prepayments

    WIP and progress billings: High prepayments 06/30/11 12/31/10 06/30/10 in € m Balance: total WIP less total progress billings 1 - 2 - 4 -64.7 -52.1 -33.9 Prepayments (liabilities) 2 + 3 353.9 273.2 211.8 ƒ Progress billings exceeded total WIP by € 65 m on June 30, 2011 ƒ Accordingly, future cash out

  13. Slide 13: Rapid growth with impact on financial ratios

    Rapid growth with impact on financial ratios 06/30/11 12/31/10 06/30/10 Equity in € m 323.2 319.4 304.2 Equity ratio in % 24.3 26.3 30.4 Net financial status in € m -34.9 23.6 -6.1 Cash in € m 195.2 252.3 100.1 Gearing in % 12.1 -8.0 2.0 ROCE1) in % 15.8 9.4 0.6 ƒ Higher equity despite currency tran

  14. Slide 14: Paint and Assembly Systems: Q2 stronger than expected

    Paint and Assembly Systems: Q2 stronger than expected H1 2011 H1 2010 ∆ in % in € m Incoming orders 821.0 500.8 63.9 Sales revenues 514.4 345.2 49.0 EBIT 20.8 3.4 511.8 ƒ Ongoing strong improvement of incoming orders from all regions ƒ Doubling of EBIT in Q2 compared to Q1 Dürr AG © CCI, Conference

  15. Slide 15: Measuring and Process Systems: Strong improvement in H1 2011

    Measuring and Process Systems: Strong improvement in H1 2011 H1 2011 H1 2010 ∆ in % in € m Incoming orders 324.1 201.1 61.2 Sales revenues 236.6 142.5 66.0 EBIT 11.8 -3.2 - ƒ Incoming orders increased by more than 100% at Cleaning and Filtration Systems ƒ Incoming orders on average level of € 150 m

  16. Slide 16: Measuring and Process Systems: Acquisition of Agramkow A/S

    Measuring and Process Systems: Acquisition of Agramkow A/S H1 2011 FY 2010 in € m Sales revenues 12.4 21.2 EBIT 2.0 3,8 ƒ World market leader in filling equipment for household appliances (e.g. air conditioners, refrigerators) and heat pumps; good position in filling equipment in automotive producti

  17. Slide 17: Clean Technology Systems: Strong growth

    Clean Technology Systems: Strong growth H1 2011 H1 2010 ∆ in % in € m Incoming orders 55.4 35.1 57.8 Sales revenues 32.6 30.2 7.9 EBIT 1.5 0.6 150.0 ƒ Several larger projects won in H1, particularly from chemical and carbon fiber industries ƒ Delayed sales realization in H1; sales revenues will spee

  18. Slide 18: Clean Technology Systems: Cyplan: First Clean Tech acquisition

    Clean Technology Systems: Cyplan: First Clean Tech acquisition ƒ 50% participation in start-up company (acquisition price € 3.5 m) ƒ ORC systems: Electricity generation from waste heat => lower waste heat temperatures can be used e.g. in biogas plants and cogeneration heat- and-power plants ƒ ORC te

  19. Slide 19: Agenda

    Agenda ƒ H1 figures ƒ China expansion ƒ Summary Dürr AG © CCI, Conference Call H1 2011, August 4, 2011 - 19 -

  20. Slide 20: China expansion: light vehicle production

    China expansion Light vehicle production: From 2011 until 2015 production will grow by 10 m additional units in China! Region 2009 2010 2011 2012 2013 2014 2015 CAGR 2011-2015 North America 8.5 (-32.5%) 11.9 (40.0%) 12.8 (7.6%) 13.8 (7.8%) 14.5 (5.1%) 15.4 (6.2%) 15.6 (1.3%) 5.1% Mercosur 3.3 (-2.9%

  21. Slide 21: Dürr China expansion: Strong growth since 2005

    Dürr China expansion: Strong growth since 2005 2011 (e) 2010 … 2005 CAGR in % Incoming orders (in € m) 600 590 146 27 Sales revenues (in € m) 440 282 83 32 Employees1 974 713 271 24 Orders on hand (in € m) 6442 577 119 32 ¹without external workers (approx. 300) 2as of 06/30/2011 Dürr AG © CCI, Confe

  22. Slide 22: China expansion overview: New production facility for Paint and Assembly Systems

    China expansion overview: New production facility for Paint and Assembly Systems Doubling of space and capacity ƒ Move-in 10/2011: Shanghai Qingpu ƒ 13,000 m2 production space ƒ 1,500 m2 office space (engineering, admin) ƒ New production facilities for e.g. laser, bending, welding ƒ Extended manufac

  23. Slide 23: China expansion overview: New production facility for Measuring and Process Systems

    China expansion overview: New production facility for Measuring and Process Systems All mechanical engineering activities under one roof ƒ Move-in 6/2013: Shanghai Baoshan 10,000 m2 10,000 m2 ƒ Consolidation from 3 to 1 location ƒ Balancing, filling, assembly, cleaning technology ƒ Synergies, know-h

  24. Slide 24: Agenda

    Agenda ƒ H1 figures ƒ China Expansion ƒ Summary Dürr AG © CCI, Conference Call H1 2011, August 4, 2011 - 24 -

  25. Slide 25: Summary

    Summary ƒ Strong sales and earnings momentum in Q2; positive trend should continue in the next quarters, healthy project pipeline ƒ High gross margin of 18.6% in Q2; in H2 somewhat weaker due to higher costs (e.g. work on Saturdays, additional employees, material costs) ƒ Outlook 2011: ¾ Incoming or

  26. Slide 26: Financial calendar

    Financial calendar 09/02/2011 Commerzbank Conference, Frankfurt 09/14/2011 UBS Conference, New York 09/28/2011 Unicredit Conference, Munich 10/19/2011 Investor's Day: BMW, Regensburg 11/03/2011 Interim report for the first nine months of 2011 12/01/2011 Berenberg Conference, Penny Hill Park, London

  27. Slide 27: Dürr AG © CCI, Conference Call H1 2011, August 4, 2011

    Dürr AG © CCI, Conference Call H1 2011, August 4, 2011 - 27 -

  28. Slide 28: Shareholder structure July 21, 2011

    Shareholder structure July 21, 2011 Dürr AG © CCI, Conference Call H1 2011, August 4, 2011 - 28 -

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