www.durr.comwww.durr.com
CONFERENCE CALLRESULTS JANUARY – JUNE 2013
DÜRR AKTIENGESELLSCHAFT
Bietigheim-Bissingen, August 1, 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 - H1/Q2, August 1, 2013
PROJECT PIPELINE LOOKS STRONG FOR Q4 2013/Q1 2014
3
Book-to-bill at 1.14
Slight sales shortfall due to temporary effects: project execution phases
Orders on hand at around one year‘s sales
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
in € m H1 2013 H1 2012 ∆ Q2 2013 Q2 2012 ∆
Incoming orders 1,293.5 1,404.3 -7.9% 613.1 725.2 -15.5%
Sales revenues 1,131.7 1,163.3 -2.7% 589.2 600.9 -1.9%
Orders on hand (06/30) 2,457.5 2,386.5 3.0% 2,457.5 2,386.5 3.0%
4
INCOMING ORDERS REACHED AN AVERAGE OF € 622 M IN THE LAST 4 QUARTERS
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
in € m
162 179 169 130
274 244294
466
337 325378
289 333 324 30278 69 83
65
97 127
155
182
116 166137
104
150 182144
81 101 101152
144 165
159
189
149160
175
141
125146
138
1813 22 17
26 21
35
29
17
2835
16
3528
29
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
Q 12013
Q 22013
Clean TechnologySystems
Measuring andProcess Systems
ApplicationTechnology
Paint and AssemblySystems
339362 375 364
557
643
541
866
619
679
725
550
643680
613
5
INCOMING ORDERS JANUARY – JUNE 2013 VS. 2012
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
1,404.3
291.4 318.8262.8
460.0
71.3
1,293.5
477.3
302.3
145.5
301.4
67.0
0
200
400
600
800
1,000
1,200
1,400
1,600
Total China America Germany Europe w/oGermany
Asia (w/o China),Africa
2012
2013
-8%
+64%
-5% -45%
-34%
-6%
in € m
Strong EM business (e.g. China, Brazil)
North America catches upGermany and Europe weak as expected
H1: GROSS MARGIN IMPROVEMENT DRIVES EARNINGS INCREASE
6© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
Gross margin at 19.4% in H1 2013 (H1 2012: 17.0%)
Moderate increase of SG&A costs: +5.8%
EBIT margin reached 7.9% in Q2 2013 (Q2 2012: 7.1%)
in € m H1 2013 H1 2012 ∆ Q2 2013 Q2 2012 ∆
Gross profit on sales 219.9 198.1 11.0% 117.8 105.8 11.3%
EBITDA 95.9 85.2 12.6% 53.7 49.7 8.0%
EBIT 82.4 72.3 14.0% 46.4 42.7 8.7%
Net income 52.4 44.0 19.1% 29.7 26.8 10.8%
STRONG CASH FLOW IMPROVEMENT OF € 87.7 M IN Q2
7© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
in € m H1 2013 H1 2012 Q2 2013 Q2 2012
EBT 72.2 59.5 40.9 36.1
Depreciation and amortization of non-current assets 13.5 12.8 7.4 6.9
Interest result 10.5 13.1 5.7 6.9
Income taxes paid -16.3 -8.8 -13.6 -6.0
∆ Provisions 9.6 -15.2 3.3 0.8
∆ Net working capital -53.6 -120.0 20.2 -91.6
Other -23.8 -6.0 -22.1 1.0
Cash flow from operating activities 12.1 -64.6 41.8 -45.9
Interest paid (net) -0.7 -2.1 -0.1 -1.1
Capital expenditures -21.7 -15.0 -13.9 -10.2
Free cash flow -10.3 -81.7 27.8 -57.2
NWC IN Q2: DECREASE OF € 23 M VERSUS Q1AS EXPECTED
8
NWC => Further decrease during H2 realistic
DWC => Already within the target range of 20 to 25 days
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
06/30/2013 03/31/2013 12/31/2012 06/30/2012
NWC in € m 153.2 176.4 98.6 151.2
DWC (Days Working Capital) 24.4 29.3 14.8 23.4
DSO (Days Sales Outstanding) 119.9 128.4 104.3 119.4
WIP AND PROGRESS BILLINGS: ONGOING IMPROVEMENT OF NEGATIVE WIP BALANCE
9© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
1
2
3
4
1 2 4
2 3
- -
+
in € m 06/30/2013 12/31/2012 06/30/2012
Assets
WIP in excess of billings 411.8 349.1 375.2
LiabilitiesWork in process from contracts (WIP) -995.7 -1,200.6 -1,262.7Progress billings 1,479.2 1,654.8 1,733.2
Billings in excess of WIP 483.5 454.2 470.5
Machinery business
WIP -45.1 -28.0 -33.1Progress billings 40.6 32.2 32.9
Billings in excess of WIP -4.5 4.2 -0.2
Balance
Total WIP less total progress billings -67.2 -109.3 -95.1
Prepayments (liabilities) 524.1 486.4 503.4
SOLID FINANCIAL RATIOS
10© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
Equity ratio should increase further in H2 after dividend payout in Q2
Particularly strong ROCE1) annualized
06/30/2013 12/31/2012 06/30/2012
Equity in € m 438.0 432.1 386.6
Equity ratio in % 23.8 23.9 22.1
Net financial status in € m 43.0 96.7 -48.3
Cash in € m 269.6 349.3 235.5
Gearing in % -10.9 -28.8 11.1
ROCE1) in % 34.7 43.9 29.5
HIGHER CAPEX TO ADJUST CAPACITIES TO INCREASED BUSINESS VOLUME
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 11
0
5
10
15
20
25
30
35
40
45
50
2009 2010 2011 2012 2013e
New/modernized test centers in Japan, USA and Germany
New site for Measuring and Process Systems in China
Capacity expansion in Poland
New assembly hall for painting and sealing robots in Bietigheim-Bissingen
Capacity increase at Dürr Assembly Products (e.g. measuring, adjustment and testing technology) and at Paint and Final Assembly Systems (e.g. workshop)
Capacity increase in glueing activities
in € m
PAINT AND ASSEMBLY SYSTEMS
Book-to-bill at 1.12
EBIT margin increased from 5.7% (H1 2012) to 7.8% (H1 2013) due to solid order execution, improved order quality and economics of scale
12© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
Operating result: Better than budgeted
in € m H1 2013 H1 2012 Q2 2013 Q2 2012
Incoming orders 625.8 703.4 301.7 378.7
Sales revenues 559.2 531.2 290.7 278.4
EBIT 43.5 30.2 24.5 16.8
Order backlog (€ 500 m) at record high
Book-to-bill at 1.3
Sales increase in H2 expected
EBIT margin above the 10% level in Q2 as well
13© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
APPLICATION TECHNOLOGY
in € m H1 2013 H1 2012 Q2 2013 Q2 2012
Incoming orders 325.9 303.2 143.5 137.0
Sales revenues 256.4 264.5 135.6 141.0
EBIT 27.3 25.6 14.4 14.0
MEASURING AND PROCESS SYSTEMS
Sales at Balancing and Assembly Products stable, orders slightly above sales in H1 2013
Pronounced sales decline at Cleaning and Filtration Systems due to selective order intake in 2012, order intake stabilized in H1 2013
Earnings decrease due to lower sales volume, capacity reductions and structural changes at Cleaning and Filtration Systems; Balancing and Assembly Products with strong margins but lower volumes in general industry
14© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
Weaker order momentum in general industry, but still on a high level
in € m H1 2013 H1 2012 Q2 2013 Q2 2012
Incoming orders 284.4 334.5 138.4 174.8
Sales revenues 273.7 323.8 139.3 157.2
EBIT 16.3 22.8 10.5 13.2
CLEAN TECHNOLOGY SYSTEMS
Incoming orders slightly below previous year´s level
Positive result despite start-up costs in energy efficiency activities
15© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
Book-to-bill at 1.4
in € m H1 2013 H1 2012 Q2 2013 Q2 2012
Incoming orders 57.4 63.2 29.5 34.8
Sales revenues 42.4 43.8 23.6 24.3
EBIT 1.3 0.7 0.8 1.5
PASSENGER CAR SALES DEVELOPMENT JANUARY - JUNE 2013/12
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 16
Change year-over-year in %
-10
-9
-8
-7
-7
-2
5
8
21
-10 -5 0 5 10 15 20 25
India
Japan
Germany
new EU countries
Western Europe
Russia
Brazil
USA
China
75% EMERGING MARKETS’ CONTRIBUTION TO GROWTH BETWEEN 2012 AND 2017
© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013 17
China, India, Malaysia, Indonesia and Thailand with expected LV production growth >9%
19.6 20.7 21.3 22.3 23.2 23.9
19.3 18.9 20.0 21.7 22.7 23.4
21.8 21.6 22.9 23.8 24.6 25.316.6 18.2
20.623.1 25.0 26.01.9 1.7
1.92.2
2.4 2.5
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
CAGR in %
Source: own estimates, PwCLast update: July 2013
in m units
4
6
9
3
4
79.2 81.186.7
93.1 97.9101.1
5.7 36.6
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
OUTLOOK:7.5% EBIT MARGIN IS ACHIEVABLE
Incoming orders in € mSales in € m
7-7.5%
18© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
OUTLOOK: STRONG CASH FLOW/FREE CASH FLOW GENERATION EXPECTED
Free cash flow in € mCash flow in € m
19© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
95
55
128 118
2009 2010 2011 2012 2013e
64
23
92 66
2009 2010 2011 2012 2013e
Higher capex included in free cash flow expectation for 2013
SUMMARY
H1 2013 on track, EBIT margin reached 7.3%
Book-to-bill at 1.14; order backlog at one year’s sale
Strong growth potential for global automotive industry, pipeline is filling up again
Positive 2013 outlook unchanged: margins and orders at the upper end of the target range
Cash flow expected to improve considerably in 2013/2014, free cash flow should exceed € 70 m p.a. in 2013/2014
20© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
FINANCIAL CALENDAR
08/30/2013 Commerzbank Conference, Frankfurt
09/12/2013 Credit Suisse Conference, London
09/16/2013 - 09/18/2013 UBS Conference, New York
09/23/2013 - 09/25/2013 Baader Bank / Berenberg-Goldman Sachs / Unicredit-Kepler-Cheuvreux Conference, Munich
11/06/2013 Interim report for the first nine months of 2013: Analysts' Conference
CONTACT: Dürr AktiengesellschaftGünter DielmannCorporate Communications & Investor RelationsCarl-Benz-Str. 3474321 Bietigheim-BissingenGermany
Phone +49 7142 78-1785E-mail [email protected]
21© Dürr Aktiengesellschaft, CCI, Conference Call - H1/Q2, August 1, 2013
www.durr.comwww.durr.com
CONFERENCE CALLRESULTS JANUARY – JUNE 2013
DÜRR AKTIENGESELLSCHAFT
Bietigheim-Bissingen, August 1, 2013
Ralf W. Dieter, CEORalph Heuwing, CFO