Draegerwerk Ag & Co. Kgaa · XETR:DRW8

Draegerwerk Ag & Co. Kgaa — Drägerwerk AG & Co. KGaA — FY2017 Earnings Presentation

46 slides from Draegerwerk Ag & Co. Kgaa's earnings presentation, Mar 8, 2018

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

    Analyst Conference Drägerwerk AG & Co. KGaA Frankfurt, March 8th 2018

  2. 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

  3. Slide 3: Overview Fiscal Year 2017

    Drager OVERVIEW Fiscal Year 2017 Geschaftsbericht 2017

  4. Slide 4: FY 2017 Highlights

    FY 2017 Highlights  Guidance achieved.  Return to Net sales growth after decline in the prior year. Strong order entry gives us a good basis for solid growth in 2018.  Gross Profit margin stabilized and cost development well controlled. EBIT and DVA increases.  Successful completion of the Fit F

  5. Slide 5: Net sales growth and EBIT improvement

    Net sales growth and EBIT improvement Business development Dräger Group Net Sales (in EUR million) Highlights  Order intake +4.4% cc above the net +3.3% FX adjusted sales development. 2,524 +1.9% 2,572  Again strong year-end business, despite Nominal some issues in the supply chain. 535 581 621 83

  6. Slide 6: Positive order intake in all regions

    Positive order intake in all regions Order development Dräger Group Order entry (in EUR million) Group Medical Safety Net Sales America 509 +1.0% +1.6% -0.2% +3.5% Africa, Asia, +2.5% +10.4% +3.5% 658 +4.5% Australia Europe 1,452 +5.6% +3.4% +8.9% +3.1% Group 2,618 +4.4% +2.6% +7.7% +3.3% Growth rat

  7. Slide 7: Business Development Regions

    Business Development Regions Fiscal Year 2017 7

  8. Slide 8: Region Americas Financial performance

    Region Americas Financial performance Order Entry Net Sales Comments +1.0% +3.5%  Order intake: Currency Currency Q4 FY 515 adjusted 509 504 adjusted 510 Medical -3.4% +1.5% Safety +3.1% -0.2% Americas -1.6% +1.0%  Solid FY Order and net sales growth in North America 2016 2017 2016 2017 could off-

  9. Slide 9: Region Americas Operational performance and priorities

    Region Americas Operational performance and priorities Operational performance 2017  Brazil production site closed as planned. Activities transferred to South Africa.  New market fulfillment organization implemented in North America.  Improvement of working capital in the region Americas Prioriti

  10. Slide 10: Region Europe Financial performance

    Region Europe Financial performance Order Entry Net Sales Comments  Order intake: +5.6% +3.1% Q4 FY Currency 1,384 Currency 1,416 Medical +6.9% +3.3% adjusted 1,448 adjusted 1,383 Safety +9.5% +9.1% Europe +7.9% +5.6%  Good top line growth in many European countries. 2016 2017 2016 2017 Germany sl

  11. Slide 11: Region Europe Operational performance and priorities

    Region Europe Operational performance and priorities Operational performance 2017  Implementation of “Future Technician Workplace”.  Strong performance in Safety, driven by Service & Consumables and also Safety Respiratory & Protective Systems.  Good recovery in many European markets outside of G

  12. Slide 12: Region Africa, Asia, Australia Financial performance

    Region Africa, Asia, Australia Financial performance Order Enty Net Sales Comments +4.5% +3.5%  Order intake: Currency Currency Q4 FY 641 adjusted 658 636 adjusted 646 Medical -7.0% +2.3% Safety +6.8% +10.3% AAA -2.8% +4.5%  Recovery in the Middle East and continuous good top-line 2016 2017 2016 2

  13. Slide 13: Region Africa, Asia, Australia Operational performance and priorities

    Region Africa, Asia, Australia Operational performance and priorities Operational performance 2017  Main growth driver is Safety with demand growth in all product areas.  After a weak 2016, strong recovery in Middle East Africa.  Start of production site in India. Production of medical support un

  14. Slide 14: Financials

    FINANCIALS Fiscal Year 2017 14

  15. Slide 15: Business development Dräger Group

    Business development Dräger Group Net Sales Comments +5.0% +3.3%  Order intake (FX adjusted) Currency Currency Q4 FY adjusted adjusted 2.572,3 Medical +0.7% +2.6% 2.523,8 Safety +7.8% +7.7% Group +3.3% +4.4% 819,5 835,3  Orders on hand ~+9% cc  Gross profit margin Q4‘16 Q4‘17 FY16 FY17 12M 44.8%

  16. Slide 16: Functional Expenses Dräger Group

    Functional Expenses Dräger Group 12M 2016 12M 2017 Change Change net of FX and restructuring € million € million % % R&D -219.0 -234.7 7.1 8.1 % of Net Sales -8.7% -9.1% Sales & Marketing -554.7 -566.3 2.1 3.3 % of Net Sales -22.0% -22.0% Administration -207.4 -197.7 -4.7 1.0 % of Net Sales -8.2% -7

  17. Slide 17: Key Figures Dräger Group

    Key Figures Dräger Group 12M 2016 12M 2017 Change € million € million % Cashflow from operating activities 195.3 143.3 -26.6 in % of EBIT 143% 92% Investments 99.9 106.2 6.3 1 Cash and cash equivalents 221.5 247.6 11.8 1 Net financial debt 34.7 -29.2 >-100 1 2 0.16 -0.12 Net financial debt /EBITDA 1

  18. Slide 18: Update Fit For Growth

    Drager Update wFIt For Growth”

  19. Slide 19: Fit For Growth Targets achieved

    FIT FOR GROWTH Targets achieved 2016 2017 1 SHAPE FIT FOR 3 Optimize global Sales, Improve SG & A Marketing & Global expense ratio Administration GROWTH footprint set-up Optimize production SG&A set-up Improve 2017 workflow and 2 FIT! delivery times ~30% and reduce Optimize production cost innovatio

  20. Slide 20: Fit For Growth - SHAPE Results of the initiatives

    FIT FOR GROWTH - SHAPE Results of the initiatives SHAPE Optimize global Sales, Marketing & Administration set-up  New governance model implemented in Q1/16 Improve SG&A expense ratio  250 cost containment measures achieve cost savings of >EUR 100m vs. original budget  Reduction of SGA ratio to <3

  21. Slide 21: Fit For Growth - Global Footprint Results of the initiatives

    FIT FOR GROWTH – GLOBAL FOOTPRINT Results of the initiatives Global Footprint Optimize production and logistic set-up  New „Zukunftsfabrik“ in Lübeck. Savings ~ EUR 9m p.a. Improve workflow and delivery times and  Transfer of production with high labor content to Czech reduce production cost Repub

  22. Slide 22: Fit For Growth - FIT! Results of the initiatives

    FIT FOR GROWTH – FIT! Results of the initiatives FIT! Optimize innovation set-up  New Innovation organization implemented. Bring customer value faster to the market  Optimization of the innovation process (e.g. AGILE development, Innovation incubator “Garage”, rapid prototyping, …).  Reduction of

  23. Slide 23: Faster. Connected. Innovative. Selection of new products

    Faster. Connected. Innovative. Selection of new products 2017 MEDICAL SAFETY IACS VG6/VG7 Vista 120 S Pulsar 7000 Secor ® 7000 Oxylog® VE300 Dräger X-am® 8000 Movita® Lift Strong Savina® 300 Select Dräger-Tubes App Dräger Alcotest® 5000 23

  24. Slide 24: Planned investments 2018/2019 will support future growth

    Planned investments 2018/2019 will support future growth… WE ARE INVESTING IN … WE WILL ACHIEVE … EXAMPLES:  Strengthening Safety sales channels …a strengthened sales force to … increasing support bringing the innovation  FGDS System Centers sales resources road map to market. &  Key Account Mana

  25. Slide 25: Our Vision

    … care givers have access to all relevant information anywhere, Our … … medical devices are safely accessible remotely Vision for preventive checks to anytime to improve increase uptime decision making. an acute care environment where … … stress factors such as nuisance alarms and noise are avoided

  26. Slide 26: Alarm management initiatives and Silent ICU

    Alarm management initiatives and Silent ICU Current Situation up to 350 ~ 80 - 95 % 50 % alarms per patient / day (1) clinically irrelevant (2) are not noticed (3) ~ 40 40 min. up to different sounds in one ICU (4) to alarm confirmation (5) (2): Lawless, S., Crit Care Med 1994; Koski, E., Int J Clin

  27. Slide 27: Alarm management Quiet and stress-reduced environments

    Alarm management Quiet and stress-reduced environments Secure alarm distribution Smart alarms Alarm history views allowing for confirmed alarm on mobile or Soft thresholds reduce the number of false providing patient specific or departmental stationary devices outside the patient room alarms signifi

  28. Slide 28: Outlook Fiscal Year 2018

    Drager OUTLOOK Fiscal Year 2018

  29. Slide 29: Dividend proposal for FY 2017

    Dividend proposal for FY 2017 2016 (in EUR million) 2017 (in EUR million) Net profit* 81.7 98.5 Dividend 3.7 11,4  Participation certificates** 0.9 3.8  Common shares 1.3 4,1  Preferred shares 1.4 3.5 Net payout ratio 5.3% 11.6% Dividend per common share preferred share Dividend policy In future

  30. Slide 30: Outlook

    Outlook 2017 guidance 2017 2018e Net Sales 0.0 % – 3.0 % 3.3 % 2.0 % – 5.0 % (net of currency effects) EBIT margin 5.0 % – 7.0 % 6.1 % 4.0 % – 6.0 %* Gross profit margin 44.0 – 46.0 % 44.8 % 44.0 – 46.0 % Dräger Value Added EUR 40m – 90m EUR 70.7m EUR 15m – 65m Assumptions for FY 2018 Guidance  Dow

  31. Slide 31: Corporate Social Responsibility at Dräger

    Corporate Social Responsibility at Dräger We protect OHSAS 18001 certified: people >80% of Dräger employees We act Compliance System with ethical mandatory trainings We create Quality Management System value ISO 9001 and ISO 13485 We respect our ~100 Supplier environment Audits per annum 31

  32. Slide 32: Questions & Answers

    Questions & Answers Drager 32 Drager. Technology for Life®

  33. Slide 33: Guidance 2018

    Guidance 2018 2017 2018e 3.3% +2.0 - +5.0 % Net sales (net of currency effects) (net of currency effects) EBIT margin 6.1% 4.0 - 6.0% Dräger Value Added EUR 70.7 million EUR 15 - 65 million Other forecast figures: Gross margin 44.8 % 44.0 - 46.0 % Research and development costs EUR 234.7 million EUR

  34. Slide 34: Business Development Segments

    Business Development Segments 2013 2014 2015 2016 2017 SEGMENT EUROPE 1 Order Entry € million 1,322.4 1,357.0 1,391.0 1,382.5 1,447.8 Net Sales 1 € million 1,333.5 1,362.2 1,420.7 1,384.3 1,415.5 EBIT € million 131.2 128.5 59.4 84.5 108.1 EBIT margin % 9.8 9.4 4.2 6.1 7.6 SEGMENT AMERICA 1 Order Ent

  35. Slide 35: Business development Segments

    Business development Segments Europe Americas Africa, Asia, Australia Dräger Group Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 € million € million € million € million € million € million € million € million Order entry 372.6 397.9 143.8 129.8 173.2 158.8 689.6 686.4 Net Sales 435

  36. Slide 36: Business Development medical and safety products

    Business Development medical and safety products 2013 2014 2015 2016 2017 Medical Order Entry € million 1,559.3 1,569.8 1,646.0 1,662.6 1,683.7 Net Sales € million 1,545.2 1,577.2 1,698.8 1,647.4 1,668.0 EBIT € million 126.1 107.6 46.2 85.3 92.9 EBIT margin % 8.2 6.8 2.7 5.2 5.6 Safety Order Entry €

  37. Slide 37: Business development Medical products

    Business development Medical products Q4 2016 Q4 2017 Change Change 12M 2016 12M 2017 Change Change € million € million % % (FX adj.) € million € million % % (FX adj.) Order entry 444.5 430.3 -3.2 0.7 1,662.6 1,683.7 1.3 2.6 Europe 221.4 234.4 5.9 6.9 835.8 859.1 2.8 3.3 America 103.3 91.5 -11.5 -3.

  38. Slide 38: Business development Safety products

    Business development Safety products Q4 2016 Q4 2017 Change Change 12M 2016 12M 2017 Change Change € million € million % % (FX adj.) € million € million % % (FX adj.) Order entry 245.2 256.1 4.5 7.8 876.1 931.0 6.3 7.7 Europe 151.2 163.5 8.1 9.5 546.7 588.7 7.7 9.1 America 40.5 38.3 -5.4 3.1 155.5 1

  39. Slide 39: Functional expenses

    Functional expenses Change 2013 2014 2015 2016 2017 net of FX and restructuring € million € million € million € million € million % R&D -201.5 -212.0 -231.1 -219.0 -234.7 8.1 % of Net Sales -8.5% -8.7% -8.9% -8.7% -9.1% SG&A -738.4 -749.2 -861.2 -762.1 -764.0 2.7 % of Net Sales -31.1% -30.8% -33.0%

  40. Slide 40: Cash-flow statement

    Cash-flow statement 2013 2014 2015 2016 2017 € million € million € million € million € million Group net profit 119.9 104.7 33.3 81.7 98.5 Change in inventories -36.5 -1.2 -5.4 17.4 -30.0 Change in receivables -69.5 1.6 -44.6 31.3 -22.4 Change in payables 6.4 25.2 -22.8 -10.2 22.2 Depreciation and a

  41. Slide 41: Consolidated balance sheet

    Consolidated balance sheet 31 Dec 2016 31 Dec 2017 Change € million € million % Intangible Assets 347.6 342.5 -1.5 Property, plant and equipment 420.9 432.3 2.7 Other noncurrent assets 150.1 154.0 2.6 Noncurrent assets 918.6 928.8 1.1 Inventories 386.8 387.7 0.2 Trade receivables 681.7 669.2 -1.8 Ot

  42. Slide 42: Consolidated balance sheet

    Consolidated balance sheet 31 Dec 2016 31 Dec 2017 Change € million € million % Equity 1,003.5 1,068.3 6.5 Liabilities from participation certificates 22.7 23.8 4.7 Provisions for pensions and similar oblig 318.3 313.0 -1.7 Noncurrent interest bearing loans 188.6 137.8 -27.0 Other noncurrent liabili

  43. Slide 43: Earnings per share

    Earnings per share 2015 2016 2017 Net profit '000 € 33,575 81,391 98,530 (less the share of earnings attributable to non‐controlling interests) + Scenario: 100% pay‐out ratio 100% 100% 100% = tax benefit from pay‐out to PCs* '000 € 3,188 7,888 9,493 Earnings attrib. to shares and PCs (incl. tax bene

  44. Slide 44: Innovation rate

    Innovation rate Share on new products and upgrades medical1 Net sales 45% Upgrades New products 40% 35% 33% 34% 32% 30% 27% 26% 25% 23% 28% 22% 20% 20% 20% 15% 22% 10% 18% 5% 10% 10% 6% 7% 2% 4% 0% 2012 2013 2014 2015 2016 2017 1 Launched in the last 3 years; products are regarded as new, if they en

  45. Slide 45: Financial calendar 2018

    Financial calendar 2018 March 8, 2018 - Analysts’ meeting April 26, 2018 - Report for the first three months 2018 Conference call May 4, 2018 - Annual shareholders' meeting, Lübeck, Germany July 26, 2018 - Report for the first six months 2018 Conference call October 30, 2018 - Report for the first n

  46. Slide 46: 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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