Drägerwerk AG & Co. KGaA Analysts' Meeting€¦ · reduction of expense/net sales ratio by...
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Drägerwerk AG & Co. KGaAAnalysts' Meeting
Frankfurt, March 12, 2013
Interim financial reports as well as preliminaries are not audited.
Disclaimer
This presentation contains forward-looking statements regarding the future development of the Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to it to date, and have been made to the best of its knowledge and belief. No guarantee or liability for the occurrence of the future developments and results specified can be assumed in respect of such forward-looking statements. Rather, the future developments and results are dependent on a number of factors; they entail risks and uncertainties beyond our control and are based on assumptions which could prove to be incorrect. Notwithstanding any legal requirements to adjust forecasts, we assume no obligation to update the forward-looking statements contained in this presentation.
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.
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Diversity at Dräger
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Diversity at Dräger
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Diversity at Dräger
Highlights Dräger Employee Stock Ownership
� Dräger will implement an employee stock ownership program to increase motivation and identification with the company. At the same time increase awareness and responsibility for a positive development of Dräger.
� Starting in Germany, employees will have the opportunity to receive one bonus share for each three purchased preference shares.
– Employees can purchase up to nine share packages of three shares each, a total of 27 shares.
– There will be a lock-up period of two years.
– Dräger does not distinguish between different employee groups. Apprentices can invest the same amount as top managers.
� It is intended to offer this program in at least 5 countries by 2015.
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� Stationary + portable gas detection systems
� Breathing air supply systems
� SCBA� Escape devices and
chambers� Services including FRS
escape shelterconfined space entry work
hazmat handling
FRS total care service on site
� Hospital Gas Management
� Workplace Infrastructure� Anesthesia� Respiratory Care � Warming Therapy
Devices� Patient Data
Management
Today’s offering
Today’s offering
GDS
Fire fightingequipment
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Highlights 2012New Marketing Approach - Examples for Segments
� broadening product portfolio
� supporting customer work flows with new offerings (e.g. IT-integration)
� integration of 3rd
party products
� providing concepts and consulting
� offering rental and financing solutions
Possible futurepotential for Dräger
Complete Solution Provider
Oil & Gas
Hospital – Operating Room
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Oil &Gas
Chemical Mining FireServices
IC OR NC HWS
Hospital*
Customers that use Dräger products along-side large parts of their value chain
Solution offerings involving various Dräger’sproduct areas alongside the customers value chain
Manage R&D process and product portfolio to increase customer satisfaction along value chain
Impair-ment
Diving Steel Shipping
Customers that only use Dräger products in individual or low-attention applications
Increase market penetration via new sales channels and marketing approaches
Improve capitalization of R&D investment Leverage existing product portfolio
more than200 others
Highlights 2012Implementation of new Marketing Approach
…
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* OR = Operating Room, IC = Intensive Care, NC = Neonatal Care, HWS = Hospital wide solutions
Focused Market Segments Application Driven Markets
Complete Solution Provider Best of Breed Provider
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Highlights 2012Sales & Service
Developing our business mechanics
� Project business gaining importance and organizational focus
� Above average growth of Service & Consumables business
Improving global coverage and streamlining organization and
infrastructure to achieve reduction of expense/net sales ratio by 1%-point
until 2014
Project Business, Accessories &
Consumables and Services strengthen solution
offerings towards our customers
Positive effects on Sales and Dräger brand
Reorganization of Sales & Service function
� One Global Head of Sales & Service. Board members taking cross-functional responsibility for a region on the board level.
� One Regional Head of Sales & Service for each of the seven regions; also responsible for the co-ordination of the regional cross-functional management team
� One Country Manager for each country
Professionalizing internal and external trainings through set up of “Dräger Academy”
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Highlights 2012New Products and Projects - Examples
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Perseus A500Tunnel Rescue TrainMerlin Tablet PC
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Net Sales (in EUR m)
866.4 864.7
2011 2012 * constant currency
-1.2%*
Europe South
-4.8%
Dräger – Robustness against crises
� Europe South: France, Spain, Italy, Portugal, Greece, Turkey,…(Net Sales – 4.8%)
� Basis for the small decline in sales 2012, are the wide range of business mechanics� Direct sale, products, systems� Consumables� Service spare parts� Advanced service features
and the wide range of product portfolio at Dräger.
Dräger – Robustness against crises
� Europe South: France, Spain, Italy, Portugal, Greece, Turkey,…(Net Sales – 4.8%)
� Basis for the small decline in sales 2012, are the wide range of business mechanics� Direct sale, products, systems� Consumables� Service spare parts� Advanced service features
and the wide range of product portfolio at Dräger.
Highlights Europe South
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Initiative Achievements 2012
Innovations 2012
New products in 2012
� 15 new products and system solutions for the hospital / Medical Division
� 14 new products and integration solutions for Safety Division
Reduce time to market
� Measures initiated to reduce time to market in 2010-2011, enabled a reduction of project duration of 2.2 month in 2012. Measures are sustainable.
Protecting intellectual property
� Dräger registered 122 patents continuing the trend of protecting intellectual property within Dräger. Energetic measures started in China. Expansion of development sites
in Emerging Countries
2013 and following years
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Initiative Achievements 2012
Strategic InitiativesPurchasing – Supplier Quality
Integration of Strategic Suppliers
2012
Savings*: 1,1 % of Sales
Reduction Suppliers: 265
Quality Improvement: + 10,2 %
*) Saving volume includes price changes vs. previous year and cost avoidance
Implementing the Purchasing Strategy
Strategy developed and execution of the Dräger supplier portfolio:
� Consolidate supplier base� Built stronger partnership with
strategic suppliers� Develope global sourcing further
Enhancing staff in purchasing and supplier-QM
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� Strong growth in Saudi Arabia including large Medical and Safety equipment and consumables orders for MOH and MOI
� Strengthen distribution channels in MEA (e.g. Draeger Maroc SARL AU, Olive Group as Draeger partner in Iraq)
� Expanding project / solutions business in MEA and AP (Shutdown & Rental in Bahrain, Fire Training Simulator in Australia)
� Laying of the foundation stone for the new production plant in Shanghai
� Strong growth in Saudi Arabia including large Medical and Safety equipment and consumables orders for MOH and MOI
� Strengthen distribution channels in MEA (e.g. Draeger Maroc SARL AU, Olive Group as Draeger partner in Iraq)
� Expanding project / solutions business in MEA and AP (Shutdown & Rental in Bahrain, Fire Training Simulator in Australia)
� Laying of the foundation stone for the new production plant in Shanghai
Asia Pacific Others
Net Sales (in EUR m)
346.1404.1
145.3181.2
2011 2012 * constant currency
+8.4%*
+24.1%*
Highlights Regions Asia / Pacific and Middle East / Africa
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Shaping the futureOperations
Initiatives Achievements Effects
� Design Global Footprint
� Transfer of labor-intensive products from Lübeck to Chomutov decided
� Transfer of manufacturing from Bern to Shanghai and Lübeck started
� Ground breaking ceremony for building extension in Shanghai
� Optimize Value Chain
� Pilot project for optimizing local value add activities in France started
� Distribution network optimized further(e.g. spare parts, Mexico)
� Global Organization & Processes
� Regional Operations organization introduced� SCOR model implemented and common
process landscape defined
� Leverage potential in growing markets
� Fulfill country-specific customer requirements
� Increase efficiency
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Shaping the futureIT Organization & Processes
Initiatives Achievements Effects
� Implementation of a global ERP template DW1
� ERP relevant business processes, especially order fulfillment process harmonized
� Global roll-out planned
� Organizational development
� Global IT and process experts merged to a joint organization
� Harmonization & Consolidation of Infrastructure
� More than 50% of all end user devices renewed
� Productivity improvement for all users
� Complexity reduction through standardization
� Increased transparency
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Highlights Region America
� New Headquarter for Central-/South-America in Panama City
� Start of sale of IP product range in the US under Dräger brand name
� Minimal downtime of production after hurricane Sandy
� Strong growth in South America despite difficult business environment due to political events
� Good market acceptance in the US of last years launched V500 and VN 500
� New Headquarter for Central-/South-America in Panama City
� Start of sale of IP product range in the US under Dräger brand name
� Minimal downtime of production after hurricane Sandy
� Strong growth in South America despite difficult business environment due to political events
� Good market acceptance in the US of last years launched V500 and VN 500
America
Net Sales (in EUR m)
440.3 461.0
2011 2012 * constant currency
-0.4%*
America
438.4 457.3
-0.7%*
NOE (in EUR m)
17
2,373.549.2 %
+5.2726.948.3 %
110.5 295.3
483.0Orders on hand
Order intake
+11.2149.7134.6DVA
Net Profit 135.0
229.69.7 %
92.312.7 %
636.7
€ million
Change
+7.4213.89.5 %
EBITEBIT margin
-33.231.2 %
-33.030.8 %
Interest ResultTax rate
+4.92,405.52,293.2
€ million€ million
Q4 2011
74.110.6 %
613.5
€ million
Change
+24.5
+3.8
% %
+8.0125.1
Q4 2012 2011 2012
1
1
1
1
after interest &income taxes
+0.5
+4.7461.3 1
EBITDA +7.5274.691.5 +20.7
Net salesGross margin
698.547.6 %
+4.1 2,255.849.1 %
1 Currency adjusted: Q4 2012: order intake +2.2%, net sales +2.7%2012: order intake +2.2%, orders on hand +5.0%, net sales +2.5%
Business development
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135.2
185.111.9 %
85.817.4 %
Orders on hand 310.5
Business developmentMedical division
92.9
€ million
Change2012
-3.5191.812.9 %
EBITEBIT margin
-2.5211.6217.2 EBITDA
+5.0 1,558.01,484.5Net sales
+2.61,558.41,518.8Order intake
€ million€ million
84.017.3 %
91.2
486.3
421.3
494.7
432.9
€ million
Change
+2.2
+1.8
+1.7
+2.7
% %1
2011Q4 2012Q4 2011
1
1
-2.9319.8
144.0 DVA
1 Currency adjusted: Q4 2012: order intake +1.1%, net sales +0.4% 2012: order intake 0.0%, orders on hand -2.4%, net sales +2.3%
-6.1
1
1
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Orders on hand 173.7
Business developmentSafety division
29.012.0 %
35.7
€ million
Change2012
+27.797.111.4 %
76.19.5 %
EBITEBIT margin
+21.9122.0100.1 EBITDA
+5.8 849.3802.7Net sales
+9.4880.8805.0Order intake
€ million€ million
9.44.2%
16.0
221.4
200.2
241.6
212.7
€ million
Change
+209.0
+123,2
+9.1
+6.2
% %
2011Q4 2012Q4 2011
1
+21.7142.8
78.957.5 DVA
1 Currency adjusted: Q4 2012: order intake +4.6%, net sales +7.6% 2012: order intake +6.8%, orders on hand +21.5%, net sales +3.2%
+37.3
1
1
1
1
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Key figures
78.1
€ million
Change20122011
+11.4404.1Net working capital1
+2.4898.425.6 %
Capital employed1
ROCE2
+0.278.2Investments
-19.4 332.4Cash and cash equivalents1
+9.3176.8Cash flow from operating activities
%€ million
362.8
877.124.4 %
412.3
161.7
+42.756.80.2
Net financial debt1
Net financial debt1/EBITDA239.8
0.1
7.637.69
EPS common sharesEPS preferred shares
7.297.35
+4.7+4.7
1 Values at due date2 EBITDA and accordingly EBIT of the last twelve monthsAnalysts' Meeting | 12.03.201321
5.815.87
EPS common shares on full distribution
EPS preferred shares on full distribution
4.544.60
+28.1+27.7
€ million
ChangeQ4 2012Q4 2011
%€ million
+15.552.3
7.2 %
45.3
6.5 %
-1.3157.6
21.7 %
159.6
22.9 %
-11.743.4
6.0 %
49.1
7.0 %
€ million
Change20122011
%€ million
+22.9197.3
8.3 %
160.5
7.1 %
+3.6595.8
25.1 %
575.3
25.5 %
-6.2140.2
5.9 %
149.5
6.6 %
Marketing and selling expenses
in % of net sales
Functional expenses
General administrative expenses
in % of net sales
Research and development costs
in % of net sales
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2,101.2
1,389.8
Consolidated balance sheet
€ million
Change31 Dec 201231 Dec 2011Assets
-2.51,425.0Current assets
+6.6
+2.3
+9.7
-19.4
362.9
600.3
94.2
332.4
340.3
586.5
85.9
412.3
Inventories
Trade receivables
Other current assets
Cash and cash equivalents
+3.1711.5690.2Non-current assets
+0.8
+1.8
+10.3
282.6
278.4
150.5
280.3
273.4
136.5
Intangible assets
Property, plant and equipment
Other non-current assets
%€ million
-0.72,115.2Total assets
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Consolidated balance sheet
€ million
Change31 Dec 201231 Dec 2011Equity and liabilities
+3.1758.3735.2Current liabilities
-1.6
+23.4
-1.7
+3.9
224.6
104.3
169.2
260.3
228.2
84.5
172.1
250.4
-5.3615.7650.4Non-current liabilities
-38.4
+28.1
-22.5
+12.3
19.2
229.8
282.9
83.8
31.2
179.4
365.3
74.6
Liabilities from participation certificates
Provisions for pensions and similar obligations
Non-current interest-bearing loans
Other non-current liabilities
-0.3727.2729.6Equity
%€ million
-0.72,101.22,115.2Total equity and liabilities
Current provisions
Current loans and liabilities to banks
Trade payables
Other current liabilities
1 Adjusted values
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Operatingactivities
Investingactivities
Financingactivities
Change incash1
Cash flow statement
20122011 21 Without effects of exchange rates on cash and cash equivalents
2 adjusted values
-300
-250
-200
-150
-100
-50
0
50
100
150
200
250
300
176.8161.7
-67.4 -65.5
-4.6
-192.0
89.7
-80.7
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Gross payout ratio
3.3
131.7
15.1 %
19.9
5.8
8.7
5.3
Dividend
€ million
31 Dec 2012
135.0Net profit
Dividend proposal 2012
Net payout ratio
- Preferred shares
- Common shares
- Participation certificates 1
2.8
122.3
3.3 %
4.1
1.2
1.3
1.6
€ million
31 Dec 2011
125.1
Earnings attributable to non-controlling interests
2.3Plus minimum dividend and tax effect of the participation certificates 1.1
16.9 %4.3 %
1 Without minimum dividend, after taxes
Net profit after earnings attributable to non-controlling interests
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Net sales
EBIT margin
2012 2013
CAGR > 4 % 2.0 % - 4.0 %
8.0 % - 10.0 %
Outlook and mid-term perspective
+5.2 %(currency adjusted
+2.5 %)
9.7 %
Midterm2018
10.0 % - 12.0 %
Gross Margin 48.5 % - 49.5 % 49.2 %
Cash flow conversion
70 % - 85 % of EBIT
77 % of EBIT
Equity ratio 35 % – 38 % 34.6 %
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Levers for achieving midterm targets
Net Sales growing
> 4 %
EBIT Margin improvement to 10.0 % – 12.0 %
� Over-proportional growth in service- and consumables business
� Continued investment in R&D offers potential for more profitable products
� Synergies through new global Sales & Service organization
� Continued optimization of Dräger’s supply chain
� Implementation of new ERP System supports steering of business
� Continued investment in R&D offers potential to grow market share
� Over-proportional growth in Emerging markets
� New Marketing organization provides potential to increase penetration of existing markets and expand currently accessible markets
� Implementation of new CRM System supports Sales
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Diversity at Dräger
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Appendix
Stefan DrägerCEO
Dr. Herbert FehreckeCTO
Gert-Hartwig Lescow CFO
Toni Schrofner COO
Executive Board
Executive Board of Drägerwerk Verwaltungs AG
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Shareholder structure
ShareholdingCommon shares
67.2 %
28.6 %
4.2 %
Dr. Heinrich Dräger GmbH
Free float
Members of the Dräger family
10,160,000 common shares (28.6 % free float)6,350,000 preferred shares (100.0 % free float)
ShareholdingDr. Heinrich Dräger GmbH
Stefan Dräger GmbH
Dräger Foundation
Successors of Dr. Heinrich Dräger
58.7 %
23.2 %
18.1 %
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March 12, 2012 Accounts press conference, Hamburg Analysts’ meeting, Frankfurt
May 2, 2012 Report for the first three months 2013 Conference call, Lübeck
May 3, 2012 Annual shareholders’ meeting, Lübeck
August 1, 2012 Report for the first six months 2013 Conference call, Lübeck
October 31, 2012 Report for the first nine months 2013 Conference call, Lübeck
Financial calendar
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Melanie Kamann Thomas FischlerCorporate Communications Investor Relations
Drägerwerk AG & Co. KGaA Drägerwerk AG & Co. KGaAMoislinger Allee 53−55 Moislinger Allee 53−5523558 Lübeck, Germany 23558 Lübeck, Germany
Tel +49 451 882-3998 Tel +49 451 882-2685 Fax +49 451 882-3944 Fax +49 451 882-3296
Mobile +49 170 8558152 Mobile +49 151 12245295
[email protected] [email protected] www.draeger.com
Contact
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