Draegerwerk Ag & Co. Kgaa · XETR:DRW8

Draegerwerk Ag & Co. Kgaa — Drägerwerk AG & Co. KGaA — FY2018 Earnings Presentation

34 slides from Draegerwerk Ag & Co. Kgaa's earnings presentation, Mar 7, 2019

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

    Analyst Conference Drägerwerk AG & Co. KGaA March 7th 2019

  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: Annual Report Overview Fiscal Year 2018

    Drager ANNUAL REPORT “ OVERVIEW Fiscal Year 2018

  4. Slide 4: Net sales growth and EBIT improvement

    Net sales growth and EBIT improvement Business development Dräger Group Net Sales (in EUR million) Highlights  Order intake +6.0% cc. +3.9% FX adjusted  Strong year-end business. 2,572 +0.9% 2,595 Nominal  Gross profit margin declined to 42.7% 496 620 613 866 (PY 44.8%).  Functional expenses inc

  5. Slide 5: 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 526 +10.2% +8.0% +15.4% +4.4% Africa, Asia, +12.4% +9.6% +6.1% 710 +11.6% Australia Europe 1,450 +1.9% +1.1% +3.2% +2.8% Group 2,686 +6.0% +5.7% +6.5% +3.9% Growth

  6. Slide 6: Investment plan for future growth

    Investmentplan for future growth Achievements 2018 and priorities 2019 What we have achieved Priorities 2019 New hub in Krefeld for supporting Dräger rental Roadmap to renew medical product portfolio. safety services. Continue to focus on reducing time to market. Strengthened Sales & Service resourc

  7. Slide 7: Strengthening organizational focus on medical and safety

    Strengthening organizational focus on medical and safety What we are changing What we will achieve  Organizational set-up and business steering  Stronger customer focus in headquarter according to medical and safety: functions.  Introduction of business units with full  Strengthening focus on cu

  8. Slide 8: Changes in board responsibilities

    Changes in board responsibilities 2019 As of January 1, 2020  Reorganization Medical Executive Board member for Toni Schrofner medical division  Innovation  Reorganisation Safety  Region Americas Executive Board member for Rainer Klug safety division  Quality, Purchasing, Production & Logistics

  9. Slide 9: Financials

    FINANCIALS Fiscal Year 2018 9

  10. Slide 10: Business development Dräger Group

    Business development Dräger Group Net Sales Comments +5.8% +3.9%  Order intake (FX adjusted) FX adjusted FX adjusted Q4 FY +3.7% 2.572,3 +0.9% 2.595,0 Medical +13.9% +5.7% Nominal Nominal Safety +8.6% +6.5% 865,9 Group +11.9% +6.0% 835,3  Orders on hand ~+25% (cc)  12M Gross profit margin Q4‘17 Q

  11. Slide 11: Region Americas Financial performance

    Region Americas Financial performance Order Entry Net Sales Comments +10.2% +4.4%  Order intake: FX adjusted FX adjusted Q4 FY 509 526 510 499 Medical +25.2% +8.0% +3.3% -2.2% Safety +35.1% +15.4% Nominal Nominal Americas +28.1% +10.2%  Solid FY Order and net sales growth in Central-, South- 2017

  12. Slide 12: Region Europe Financial performance

    Region Europe Financial performance Order Entry Net Sales Comments +1.9% +2.8%  Order intake: FX adjusted FX adjusted Q4 FY Medical +2.3% +1.1% 1,448 +0.2% 1,450 1,415 +1.2% 1,432 Safety +3.7% +3.2% Nominal Nominal Europe +2.9% +1.9%  Good top line growth in Germany with mixed 2017 2018 2017 2018

  13. Slide 13: Region Africa, Asia, Australia Financial performance

    Region Africa, Asia, Australia Financial performance Order Enty Net Sales Comments +11.6% +6.1%  Order intake: FX adjusted FX adjusted Q4 FY 658 710 664 Medical +30.1% +12.4% +8.0% 646 +2.7% Safety +4.7% +9.6% Nominal Nominal AAA +21.4% +11.6%  Strong order growth in all sub- Regions. Sales develo

  14. Slide 14: Functional Expenses Dräger Group

    Functional Expenses Dräger Group 12M 2017 12M 2018 Change Change net of FX € million € million % % R&D -234.7 -252.2 7.5 8.4 % of Net Sales -9.1% -9.7% Sales & Marketing -566.3 -592.6 4.7 7.0 % of Net Sales -22.0% -22.8% Administration -197.7 -198.5 0.4 3.0 % of Net Sales -7.7% -7.6% SG&A -764.0 -79

  15. Slide 15: Key Figures Dräger Group

    Key Figures Dräger Group 12M 2017 12M 2018 Change € million € million % Cashflow from operating activities 143.3 4.1 -97.1 Investments 106.2 77.8 -26.7 Cash and cash equivalents1 247.6 179.6 -27.5 Net financial debt1 -29.2 43.3 >100 Net financial debt 1 /EBITDA 2 -0.12 0.29 Capital employed 1 1,243.

  16. Slide 16: Outlook Fiscal Year 2019

    Drager OUTLOOK Fiscal Year 2019

  17. Slide 17: Dividend proposal for FY 2018

    Dividend proposal for FY 2018 2017 (in EUR million) 2018 (in EUR million) Net profit* 98.5 34.4 Dividend 11.4 4.3  Participation certificates** 3.8 1.6  Common shares 4.1 1.3  Preferred shares 3.5 1.4 Net payout ratio 11.6% 12.6% Dividend per common share preferred share Dividend policy Dräger pl

  18. Slide 18: Outlook FY 2019

    Outlook FY 2019 2018 guidance1 2018 2019e Net Sales 2.0 % – 5.0 % 3.9 % 1.0 % – 4.0 % (net of currency effects) EBIT margin 2.0 % – 3.5 % 2.4 % 1.0 % – 3.0 %2 Gross profit margin 42.5 – 44.0 % 42.7 % +/- 1 pp Dräger Value Added EUR -40m to 0m EUR -26.5m EUR -60 to -10m Assumptions for FY 2019 Guidan

  19. Slide 19: Questions & Answers

    Questions & Answers Drager 19 Drager. Technology for Life®

  20. Slide 20: Guidance 2018 / 2019

    Guidance 2018 / 2019 2018 2019e 3.9% +1.0 - +4.0 % Net sales (net of currency effects) (net of currency effects) EBIT margin 2.4% 1.0 - 3.0 %1 Dräger Value Added EUR -26.5 million in the range EUR -60 to -10 million Other forecast figures: Gross margin 42.7 % on prior year's level (+ / - 1pp) Resear

  21. Slide 21: Business Development Segments 5y view

    Business Development Segments 5y view 2014 2015 2016 2017 2018 SEGMENT EUROPE 1 Order Entry € million 1,357.0 1,391.0 1,382.5 1,447.8 1,450.2 1 1,362.2 1,420.7 1,384.3 1,415.5 1,431.9 Net Sales € million EBIT € million 128.5 59.4 84.5 108.1 82.0 EBIT margin % 9.4 4.2 6.1 7.6 5.7 SEGMENT AMERICA 1 Or

  22. Slide 22: Business development Q4 Segments

    Business development Q4 Segments Europe Americas Africa, Asia, Australia Dräger Group Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 € million € million € million € million € million € million € million € million Order entry 397.9 401.6 129.8 162.9 158.8 190.7 686.4 755.3 Net Sales

  23. Slide 23: Business development 12M Segments

    Business development 12M Segments Europe Americas Africa, Asia, Australia Dräger Group 12M 2017 12M 2018 12M 2017 12M 2018 12M 2017 12M 2018 12M 2017 12M 2018 € million € million € million € million € million € million € million € million Order entry 1,447.8 1,450.2 509.2 526.0 657.6 710.2 2,614.7 2

  24. Slide 24: Business Development medical and safety products 5y view

    Business Development medical and safety products 5y view 2014 2015 2016 2017 2018 Medical Order Entry € million 1,569.8 1,646.0 1,662.6 1,683.7 1,723.4 Net Sales € million 1,577.2 1,698.8 1,647.4 1,668.0 1,643.0 EBIT € million 107.6 46.2 85.3 92.9 6.9 EBIT margin % 6.8 2.7 5.2 5.6 0.4 Safety Order E

  25. Slide 25: Business development Medical

    Business development Medical Q4 2017 Q4 2018 Change Change 12M 2017 12M 2018 Change Change € million € million % % (FX adj.) € million € million % % (FX adj.) Order entry 430.3 480.5 11.7 13.9 1,683.7 1,723.4 2.4 5.7 Europe 234.4 233.5 -0.4 2.3 859.1 852.6 -0.8 1.1 America 91.5 112.3 22.8 25.2 356.9

  26. Slide 26: Business development Safety

    Business development Safety Q4 2017 Q4 2018 Change Change 12M 2017 12M 2018 Change Change € million € million % % (FX adj.) € million € million % % (FX adj.) Order entry 256.1 274.7 7.3 8.6 931.0 963.1 3.4 6.5 Europe 163.5 168.1 2.8 3.7 588.7 597.5 1.5 3.2 America 38.3 50.6 32.1 35.1 152.3 164.6 8.1

  27. Slide 27: Functional expenses 5y view

    Functional expenses 5y view 2014 2015 2016 2017 2018 Change € million € million € million € million € million % R&D -212.0 -231.1 -219.0 -234.7 -252.2 7.5 % of Net Sales -8.7% -8.9% -8.7% -9.1% -9.7% SG&A -749.2 -861.2 -762.1 -764.0 -791.1 3.5 % of Net Sales -30.8% -33.0% -30.2% -29.7% -30.5% Other

  28. Slide 28: Cash-flow statement

    Cash-flow statement 2014 2015 2016 2017 2018 Change € million € million € million € million € million % Group net profit 104.7 33.3 81.7 98.5 34.9 -64.6 Change in inventories -1.2 -5.4 17.4 -30.0 -76.9 >-100 Change in receivables 1.6 -44.6 31.3 -22.4 -41.0 -83.3 Change in payables 25.2 -22.8 -10.2 2

  29. Slide 29: Consolidated balance sheet (assets)

    Consolidated balance sheet 31 Dec 2017 31 Dec 2018 Change € million € million % Intangible Assets 342.5 336.0 -1.9 Property, plant and equipment 432.3 429.1 -0.7 Other noncurrent assets 154.0 168.6 9.4 Noncurrent assets 928.8 933.7 0.5 Inventories 387.7 459.2 18.4 Trade receivables 669.2 703.9 5.2 O

  30. Slide 30: Consolidated balance sheet (equity and liabilities)

    Consolidated balance sheet 31 Dec 2017 31 Dec 2018 Change € million € million % Equity 1,068.3 1,080.7 1.2 Liabilities from participation certificates 23.8 24.8 4.5 Provisions for pensions and similar obl 313.0 339.3 8.4 Noncurrent interest bearing loans 137.8 125.1 -9.2 Other noncurrent liabilities

  31. Slide 31: Earnings per share

    Earnings per share 2016 2017 2018 Net profit '000 € 81,391 98,530 34,355 (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 € 7,888 9,493 3,302 Earnings attrib. to shares and PCs (incl. tax bene

  32. Slide 32: Innovation rate

    Innovation rate Share on new products and upgrades medical1 Net sales 45% Upgrades New products 40% 35% 34% 32% 31% 30% 27% 26% 25% 28% 22% 20% 20% 25% 20% 15% 22% 10% 18% 5% 10% 6% 7% 6% 2% 4% 0% 2013 2014 2015 2016 2017 2018 1 Launched in the last 3 years; products are regarded as new, if they ena

  33. Slide 33: Financial calendar 2019

    Financial calendar 2019 March 7, 2019 - Final 2018 figures Conference call April 25, 2019 - Report for the first three months 2019 Conference call May 10, 2019 - Annual shareholders' meeting, Lübeck, Germany August 8, 2019 - Report for the first six months 2019 Conference call October 30, 2019 - Rep

  34. Slide 34: 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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