Dürr AG Preliminary Figures 2012 (Conference Call)

www.durr.comwww.durr.com

CONFERENCE CALLPRELIMINARY FIGURES FISCAL YEAR 2012

DÜRR AKTIENGESELLSCHAFT

Bietigheim-Bissingen, February 19, 2013

WELCOME

Ralf W. Dieter, CEORalph Heuwing, CFO

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 be understood that many factors might cause forecast and actual results to differ from

these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations,

developments in raw material and personnel costs, physical and environmental risks, legal and

legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on

management estimates supported by information provided by specialized external agencies.

2© Dürr Aktiengesellschaft, CCI, Conference Call - preliminary figures 2012, February 19, 2013

AGENDA

1. Overview

2. Financials

3. Strategy

4. Outlook and summary


1. OVERVIEW

4

Earnings at record level, EBIT margin reached 7.4%

All figures above budget and consensus

1) proposal annual general meeting

2011 2012 ∆

Incoming orders in € m 2,684.9 2,596.8 -3.3%

Orders on hand (December 31) in € m 2,142.7 2,316.8 8.1%

Sales revenues in € m 1,922.0 2,399.8 24.9%

EBIT in € m 106.5 176.9 66.1%

Net income in € m 64.3 111.4 73.3%

Earnings per share 3.58 6.20 73.2%

Dividend per share 1.20 2.251) 87.5%

Cash flow from operating activities in € m 127.9 117.6 -8.1%

Free cash flow in € m 91.8 65.9 -28.2%

© Dürr Aktiengesellschaft, CCI, Conference Call - preliminary figures 2012, February 19, 2013

1. OVERVIEWQ4 with strong cash generation

5

Book to bill at 1

EBIT margin in Q4 at 9.0%

in € m Q4 2011 Q4 2012 ∆

Incoming orders 618.4 642.5 3.9%

Sales revenues 614.7 642.3 4.5%

EBIT 43.0 58.0 34.9%

Net income 29.7 40.1 35.0%

Cash flow from operating activities 99.7 136.0 36.4%

Free cash flow 96.5 125.1 29.6%


6

Q4 order intake above Q3 2012 and Q4 2011 (+17% / +4%)

162 179 169 130

275 244294

466

336 325379

289 33378 69 83

65

97 127

155

182

116 166137

104

150

80 101 100152

144 165

159

189

149160

175

141

125

1813 22 17

26 21

35

29

17

2835

16

35

0

100

200

300

400

500

600

700

800

900

1,000

Q 42009

Q 12010

Q 22010

Q 32010

Q 42010

Q 12011

Q 22011

Q 32011

Q 42011

Q 12012

Q 22012

Q 32012

Q 42012

Clean TechnologySystems

Measuring andProcess Systems

ApplicationTechnology

Paint andAssembly Systems

338362 374 364

557

643

542

866

618679

725

550

643

1. OVERVIEW


in € m

Incoming orders: 2012 vs. 2011

7

2,684.9

857.9648.6

322.2

589.4

266.8

2,596.8

852.7

483.7387.1

742.0

131.3

0

500

1,000

1,500

2,000

2,500

3,000

Total China America Germany Europe w/oGermany

Asia (w/o China),Africa, Australia

2011

2012

-3%

-1%

-25%

+20%

+26%

-51%

Strong European business,China recovered in H2

1. OVERVIEW


in € m

Order intake: Healthy regional split

Emerging markets share 55%

China most important single market

Germany

Rest of Europe incl. Eastern Europe

North and South America

Asia (w/o China), Africa, Australia

China

* Asia (w/o Japan), Mexico, Brazil, Eastern Europe

8

Incoming orders 2012 (2011)

Incoming orders2012 (2011)

Sales revenues2012 (2011)

Mature markets Emerging

markets *

45% (35%) 55%

(65%)

32.8% (32.0%)

5.1% (9.9%)

18.6% (24.1%)

28.6% (22.0%)

14.9% (12.0%)

30.4% (30.0%)

7.7% (8.2%)

25.3% (22.4%)

23.1% (24.8%)

13.5% (14.6%)

1. OVERVIEW


AGENDA

1. Overview

2. Financials

3. Strategy



2. FINANCIALSNet income above € 100 m for the first time

10

2011 2012 ∆

Sales revenues in € m 1,922.0 2,399.8 24.9%

Gross profit on sales in € m 331.4 437.8 32.1%

Gross margin in % 17.2 18.2 +1%-point

R&D in € m -29.5 -37.2 26.1%

SG&A in € m -196.0 -225.7 15.2%

EBIT in € m 106.5 176.9 66.1%

Financial result in € m -20.7 -29.2 41.1%

EBT in € m 85.8 147.7 72.1%

Income taxes in € m -21.5 -36.3 68.8%

Net income in € m 64.3 111.4 73.3%


2. FINANCIALS

11

Strong sales momentum (+25%)

Gross margin increased to 18.2% in 2012 (2011: 17.2%)

Higher margins in new business, good order execution, clear improvement in H2 2012

R&D expense increased by 26%, further strengthening of competitive position

Cost containment in SG&A costs: increase by 15%

Hardly any impact from other operating expenses/income

Financial result worsened mainly due to one-offs (write-off of syn loan transaction fees, interest assessment on long-term labor accounts)

Income tax rate at 25% due to the use of tax loss carry forwards

Net income margin at 4.6%

Income statement


2. FINANCIALS

12

Cash flow above expectations due to strong earnings increase; cash flow affected by NWC increase

Cash flow/free cash flow

in € m 2011 2012

EBT 85.8 147.7

Depreciation and amortization 20.6 28.5

Interest result 21.3 29.6

Income taxes paid -14.3 -21.3

Changes

Provisions 0.6 -17.2

Net working capital -2.3 -69.1

Other 16.2 19.4

Cash flow from operating activities 127.9 117.6

Interest paid (net) -16.5 -20.3

Capital expenditures -19.6 -31.4

Free cash flow 91.8 65.9


2. FINANCIALS

13

Moderate NWC increase

DWC better than target range of 20-25 days

DSO decrease due to moderate increase in accounts receivable

Net working capital: on track

12/31/2011 12/31/2012

NWC in € m 32.6 98.6

DWC (Days Working Capital) 6.1 14.8

DSO (Days Sales Outstanding) 117.2 104.3


2. FINANCIALSWIP and progress billings: High prepayment level at year-end 2012

14

in € m 12/31/2011 12/31/2012

AssetsWIP in excess of billings 297.6 349.1

LiabilitiesBillings in excess of WIP 428.2 454.2

Machinery businessProgress billings 18.6 32.2

Billings in excess of WIP -4.5 4.2

Total balance

Total WIP less total progress billings

- - -126.1 -109.3

Prepayments (liabilities)

+ 446.8 486.4

1

2

3

4

421

2 3

Progress billings were € 109 m higher than future receivables1) => future cash out1) these future receivables are not included in trade receivables


2. FINANCIALS

15

Cash position at a high level, equity base strengthened in absolute and relative terms

Equity ratio should improve further in the coming years

Net financial status further improved

12/31/2011 12/31/2012

Equity in € m 364.3 432.1

Equity ratio in % 21.9 23.9

Net financial status in € m +51.8 +96.7

Cash in € m 298.6 349.3

Gearing in % -16.6 -28.8

ROCE in % 28.4 43.9


2. FINANCIALSROCE clearly above cost of capital

Dürr’s business model favors low capital employed

Strong focus on NWC management

Even slight CE decrease since 2006 despite almost doubling of business volume 0

1234567

0

10

20

30

40

50

2006 2007 2008 2009 2010 2011 2012

ROCE in % CE turnover

16

2006 2007 2008 2009 2010 2011 2012

EBIT in € m 33.1 55.7 72.7 5.7 36.6 106.5 176.9

Capital employed in € m 420.1 378.8 432.1 356.3 356.7 374.8 402.6

NWC in € m 154.7 128.9 151.8 57.4 27.3 32.6 98.6

DWC 40.9 31.4 34.1 19.2 7.8 6.1 14.8

ROCE in % 7.9 14.7 16.8 1.6 10.3 28.4 43.9


2. FINANCIALSDivisional breakdown 2012 (2011)

DÜRR Group

Paint and Assembly Systems Application Technology

Incoming orders: € 1,326.1 m (€ 1,340.4 m)Sales: € 1,125.2 m (€ 878.7 m)EBIT: € 73.9 m (€ 40.5 m)

Incoming orders: € 556.6 m (€ 580.8 m)Sales: € 531.2 m (€ 406.8 m)EBIT: € 52.4 m (€ 31.1 m)

Measuring and Process Systems Clean Technology Systems




AGENDA

1. Overview

2. Financials

3. Strategy



3. STRATEGY

19

Growth, optimization and new business in focus

Focus Dürr 2010 Dürr 2015

(2005-2006) (2007-2010)

Portfolio disposal

Restructuring

Process optimization

Sales push

Customer benefit

Growth initiatives

Process optimization

Value creation

Growthfocus on emerging markets

acquisitions

service and modernization

product innovation

Optimization capacities

global processes/localization

New businesscleantech

energy efficiency


3. STRATEGYEmerging markets growth

China 2005 … 2012 CAGR

in %

Incoming orders in € m 146 853 29

Sales revenues in € m 83 730 36

Employees (12/31) 271 1,6001) 29

Average sales growth (2005-2012): Brazil: 35%, Mexico: 24%, India: 36%

Total expenditure for capacity expansion 2012/2013: € 50 m with focus on emerging markets

Example China: - Doubling of capacities in space to 63.000 m²- Increasing use as manufacturing, purchasing and engineering center

¹) including external workers (~ 400)


Construction site Dürr Baoshan

19.7 20.4 21.2 22.4 23.4 24.2

19.3 19.4 20.5 21.8 22.7 23.3

21.8 22.3 23.6 24.6 24.9 25.816.4 18.9

21.423.5 25.2 26.21.8

2.02.2

2.5 2.62.7

0

10

20

30

40

50

60

70

80

90

100

110

2012 2013 2014 2015 2016 2017

America Europe Asia (without China) China other

3. STRATEGY

21

China, India, Russia, Malaysia, Thailand, Indonesia: expected LV production growth >8%

Emerging markets contribute 75% to total growth between 2012 and 2017

CAGR in %

source: own estimates, PwClast update: January 2013

in m units

4

8

10

3

4

79.0 83.088.9

94.8 98.8102.2


3. STRATEGY

22

Emerging markets: South East Asia1) – the next growth area

South East Asia1) Germany

GDP (USD) 2.89 bn 3.57 bn

∅ GDP growth(till 2017)

+6% +1%

LV production 4.2 m 5.6 m

∅ LV production growth (till 2017)

+8% +2%


Dürr office in Bangkok

1) Indonesia, Malaysia, Philippines, Thailand, Vietnam

3. STRATEGYExpanding service business: 14% revenue growth in 2012

2008 2009 2010 2011 2012

Sales revenues in € m 395.9 263.3 362.0 445.4 506.9

Share of group sales in % 24.7 24.4 28.7 23.2 21.1

23

~250 paint shops in the world are older than 20 years

Increasing potential due to ageing plant structure1)

1) based on own calculations

75% 71% 67%62%

39%

17%25%

7%

19%

34%

8% 4%

26%19%

27%

0%10%20%30%40%50%60%70%80%

NorthAmerica

SouthAmerica

Russia EU Asia

>20 years 10 - 20 years <10 years


3. STRATEGY

24

R&D expenditure in € m

Main goal: cost per unit reduction

Higher automation/flexibilization needs

Differentiation from competitors

34 new products in 2012

Leading in Production Efficiency: Dürr innovations in 2012

2010 2011 2012

25.8 29.5 37.2


3. STRATEGYNew business: product portfolio of Dürr’s Clean Technology Systems division

Heat pumps

60-150°C

Compact Power System

up to 600°C100-1,000°C900-1,000°C

Latent heat storage

60-150°C

Adsorption, thermal and

catalytic oxidation

> 1,000°C

ORC Heat exchangersTreatment of hazardous waste

1,000-1,200°C

ConversionHeat storagePower generationWaste air purification Exchange

Energy efficiency technologyEnvironmental technolgy


AGENDA

1. Overview

2. Financials

3. Strategy



5.736.6

106.5

176.9

2009 2010 2011 2012 2013e

EBIT margin (EBIT in € m)

2.9%0.5%

5.5%

7.4%

1,2171,460

1,7821,464

1,185

1,642

2,685 2,597 2,300-2,500

2005 2006 2007 2008 2009 2010 2011 2012 2013e

1,0781,261

1,922

2,400

2,400-2,600

2009 2010 2011 2012 2013e

4. OUTLOOK AND SUMMARY (1)7.5% EBIT margin in focus – Ongoing growth and profit improvement expected

Incoming orders in € mSales in € m

7-7.5%


4. OUTLOOK AND SUMMARY (2)

2012: Best year in Dürr‘s history

Dividend of € 2.25 per share proposed

Strong growth potential for global automotive industry, good opportunities for Dürr despite weak European markets

Cash flow improving considerably in 2013/2014, free cash flow should exceed € 70 m annually in 2013/2014

Further acquisitions planned => strengthen core portfolio & Clean Technology Systems


FINANCIAL CALENDAR

03/13/2013 Publication annual financial report 2012

04/26/2013 Annual general meeting, Bietigheim-Bissingen

05/07/2013 Interim report for the first quarter of 2013

08/01/2013 Interim financial report for the first half of 2013

11/06/2013 Interim report for the first nine months of 2013

CONTACT: Dürr AktiengesellschaftGünter DielmannCorporate Communications & Investor RelationsCarl-Benz-Str. 3474321 Bietigheim-BissingenGermany

Phone +49 7142 78-1785E-mail [email protected]


Appendix


SHAREHOLDER STRUCTURE Free float at 70%

Shareholder structure (as of January 2013)*

26.5% Heinz Dürr GmbH, Berlin

3.5%Heinz und Heide Dürr Stiftung GmbH, Stuttgart

70.0%Institutional and private investors

26.5%

3.5%70.0%

* figures rounded

(thereof 1% share ofDürr Management Board)


PASSENGER CARS SALESDECEMBER 2012 VS. 2011

32

Change year-over-year in %

-8

-3

-3

6

8

10

10

13

30

-10 -5 0 5 10 15 20 25 30 35 40

Western Europe

Germany

new EU countries

Brazil

China

India

Russia

USA

Japan


www.durr.comwww.durr.com

CONFERENCE CALLPRELIMINARY FIGURES FISCAL YEAR 2012

DÜRR AKTIENGESELLSCHAFT

Bietigheim-Bissingen, February 19, 2013

Ralf W. Dieter, CEORalph Heuwing, CFO

Dürr AG Preliminary Figures 2012 (Conference Call)

Investor Relations

Transcript of Dürr AG Preliminary Figures 2012 (Conference Call)