Drägerwerk AG & Co. KGaAAnalyst Conference 2016

Frankfurt, 09. März 2016

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.

Interim financial reports as well as preliminaries are not audited.

2

HIGHLIGHTS FIT FOR GROWTH

FINANCIALS OUTLOOK

RAINER KLUG

REGION AMERICAS

EXECUTIVE BOARD MEMBER FOR PURCHASING, PRODUCTION AND LOGISTICS

Curriculum vitaePersonal information:

• Born: May 5, 1968, Goslar, Germany

• Marital status: married

• Engineering / Factory automation, Dipl. Ing.

Career:

• KSB AG, Frankenthal

• Baumer Group AG, Frauenfeld/Schweiz

• Giesecke und Devrient GmbH, München

4

Curriculum vitaePersonal information:

• Born: April 12, 1970, Hoyerswerda, Germany

• Marital status: married, two children

• Industrial engineering, Dipl. Ing.

Career:

• REHAU AG & Co., Rehau

• REHAU Pte. Ltd., Singapur

• Groz-Beckert KG, Albstadt

DR. REINER PISKE

REGION EUROPE

CHIEF HUMAN RESOURCES OFFICER

5

2,435

546 634 604825

2,609

2014 Q1 Q2 Q3 Q4 2015

2015 Net Sales strongly supported by FXBusiness Development Dräger Group

Net Sales (in EUR million)

+2.9%Currency adjusted

+7.2%Nominal

7.3%EBIT-Margin

2.6%EBIT-Margin

� Sales increase in line with expectations: net sales of EUR 2,609; +2.9% cc

� High one-off costs in Q3 (EUR ~20m)

� Strong year-end business

� FY EBIT-margin 2.6%

� Both segments contributed to net sales growth, but strong differences is regional development

� Full-year FX impact negative on EBIT (FY FX: Net sales +4,3%, EBIT margin ~ -1%)

� Intensifying „Fit for growth“ efficiency measures

� Change in dividend policy to minimum pay-out

Highlights

6

Order Entry lagged behind Net Sales

Order EntryGroup

2,416

1,356

497

426

219

Group

Europe

Americas

Asia/Pacific

MEAO* -0.2%

-0.8%

-1.3%

+2.2%

+0.8%

Medical

+2.7%

-2.1%

0.0%

+1.3%

+0.6%

Safety

-8.4%

+2.0%

-4.4%

+3.6%

+1.3%

7

Net SalesGroup

+7.0%

+1.9%

-1.1%

+4.0%

+2.9%

Order Entry in EUR million, yoy growth rates in constant currency* MEAO = Middle East, Africa & Others

Dräger is facing a challenging macro environment and increasing customer demands

Cyclical challenges Structural challenges

� Volatile demand growth from emerging markets

� Significant decline in investment-activity from safety customers as a result of low commodity prices

� Proof of clinical value combined with economic value for customers

� Concentration and centralization of purchasing decisions

� Increasing competition and pricing pressure

8

Dräger has the right business modelto face these challenges …

Highdiversityof businessmechanics

Highdiversityof businessmechanics

No single product

>3% of net sales

No single product

>3% of net sales

Highdiversityof customers

Highdiversityof customers

No single customer

>1% of net sales

No single customer

>1% of net sales

9

… but recent execution was insufficient

� Too much focus on internal topics

� Unclear responsibilities and accountability

� Cost structure not supported by net sales development

Performancein the last

3 years

Performancein the last

3 years

Internal root Causes:

Average realized

growth fell short of

expectations

Average realized

growth fell short of

expectations

Gross-Profit Margin

declined

Gross-Profit Margin

declined

Expenses grew above the rate of

sales growth

Expenses grew above the rate of

sales growth

10

We are addressing these root causes with a new organizational set up

What we are changing What we will achieve

� New regional structure with consolidation of number of regions from 7 to 6

� The operational business is comprehensively managed by the local entity

� Three board members have full business responsibility for “their” region

� Executive board is replacing the former executive team

� Alignment via global strategic guidelines and global standards

Empowerment of local entities to fully serve customers in order to strengthen accountability for our results:

� Strengthening entrepreneurship in the local entity and full focus on customers

� Speed up decision taking with reduced complexity

� Clear accountability for execution of the strategy and business performance

� Customers will receive more „Board Exposure“

� Streamline administrative structure for reduced cost

11

Empowerment along the future structure of three regions with three accountable board members

Regional setup

Central & South America

USA &Canada

Asia, Africa & Australia

Germany &Austria/Switzerland

West & East Europe

� Full regional business responsibility is assigned to three board members additionally to their current role

� Strategic importance of three direct reporting countries is reflected

� Regions can focus on a more homogeneous set of countries

� Local Management fully accountable to execute on business plan

China &Hong

Kong/Taiwan

12

Anton Schrofner

Rainer Klug

Dr. Reiner Piske

FIT FOR GROWTH is being intensified for better execution and quicker cost savings

FIT FOR GROWTHFIT FOR

GROWTH1122

33SHAPE

Optimize global Sales, Marketing &

Administration set-up

FIT!Optimize

innovationset-up

Global footprint

Optimizeproduction

set-up Improveworkflow anddelivery timesand reduce

production cost

Improveworkflow anddelivery timesand reduce

production cost

Bring customervalue faster tothe market and

increaseinnovationshare

Bring customervalue faster tothe market and

increaseinnovationshare

short term costsavings

short term costsavings

Improve SG & A expense ratio

andworking capital

Improve SG & A expense ratio

andworking capital

NEWNEW

13

SHAPE was redesigned to deliver shorter term costsavings and higher execution capabilities

11SHAPE

Optimize global Sales, Marketing & Administration

set-up

2016/2017 mid-term

Focus on turnaround phase

Focus on medium- term improvements

� Continue to harmonize ERP landscape and standardize back-office & logistic processes

� Implementation of shared services where useful

� Legal entity consolidation within sales organization

NEWNEW

NEWNEW

NEWNEW

Measures for shorter term cost savings:

� Personnel reduc-tions in HQ Lübeckand international subsidiaries

� Reductions of COGS and functional cost

Implement new organizational model to improve execution

Pricing excellence project to increase price enforcement and grow margin contribution

14

SHAPE: 250 measures have been defined that will be implemented over the next 2 years

11SHAPE

Optimize global Sales, Marketing & Administration

set-up

250measuresdefined

250measuresdefined

Lean set-up

Direct & Indirectspend

� Right sizing of administration functions

� Reduction of internal services

� Increase Shared services / shared resources

� Streamlining of regional & country structure

� Consolidation of buildings/offices

� Demand management and spending behavior

� Re-negotiation of supplier contracts

� Portfolio simplification and phase out

� Optimization of freight and logistic costs

in EUR 2015 2016 2017

Restructuring charges

35m ~10m ~10m

Savings* ~50m ~50m

SG&A ratio 33% ~30%

€100million

savings*

€100million

savings*

SG&A2017

~30%**

SG&A2017

~30%**

Focus on turnaround phase

* savings calculated against original planned budget** at comparable FX rates and before possible on-off expenses

15

Faster. Connected.

Innovative.Customer delightConnect and networkSpeed and agility

� Continuously create and launch innovation

� Put customer value add in the center of all doing

� Establish innovation culture

� Connect and innovate globally

� Utilize and participate in expert networks

� Enable connectivity in all devices

� Bring customer value faster to market

� Reduce complexity

� Increase Productivity

FIT! Taking a holistic approach to optimize Innovation

16

FIT!Overview Initiatives

2016 and Beyond2015

What we have achieved

New C&D structure is implemented

Bundling of our system competencies in one Center of Competence to explore synergies

New launch process introduced to improve ramp-up speed for new innovations

Approach for expanding therapy products portfolio in Emerging Markets in place

Installed common strategic technology approach to work on the right technological trends

Deliverables

23 launches new products and enhancements incl. system functionality, with reduced expenses compared to 2015

Continue to focus on Time to Market Target achievement

Solve remaining quality topics

Reduce internal standards by 50%

Realize 5 major phase outs

Vitalize Innovation @ Dräger, free up innovation power

17

FIT! Example: Infinity® Mview – Innovative. Connected. Faster.

ZZ

ZZ

ZZ

Provides an easy alarmhistory finding

Big number displayssupport high visibility

From idea to marketlaunch in 2,5 years

Use any mobile deviceto stay connected to yourpatients

Integrated 10 minutesfull-disclosure “Follow-Me” function

immediately links the caregivers tothe right patientsObserve your patients

while not at thebedside via mobile Patient List

Innovative.Innovative.

Faster.Faster.

Connected.Connected.

18

Global Footprint

Optimizeproduction

set-up

Global Footprint

Optimizeproduction

set-up

CompletedQ2 2016

CompletedQ2 2016

CompletedQ3 2016

CompletedQ3 2016

CompletedQ4 2016

CompletedQ4 2016

� Transfer of production with high labor content to Chomutov, Czech Rep.

– Transfer production lines for masks, protective clothing and others

� Closure of site in Pittsburgh, USA

– Existing production lines (gas detection devices) will be transferred to Lübeck

� Investment in “Zukunftsfabrik” in Lübeck, Germany

– Complete modernization of main production and logistic site and introduction of efficient material-and workflow to improve flexibility and delivery times

GLOBAL FOOTPRINT Achievements

19

FINANCIALS

97.366.5

Q4‘14 Q4‘15

178.6

66.7

FY14 FY15

Business developmentDräger Group

Net Sales

EBIT

769.7825.4

Q4‘14 Q4‘15

2,434.7

2,608.9

FY14 FY15

+4.4%Currency adjusted

+2.9%Currency adjusted

-32% -63%

� Order entry Q4 cc -6.9%

� Book to bill 0.97

� Gross profit margin 12M 44.9% (py 46.7%)

� 12M Functional Expenses yoy +13.5% (cc, excl. restructuring +5.4%)

� 12M Other financial resultEUR -6.8m (py € +7.8m)

� 12M restructuring cost € ~35m (thereof Q4 € ~30m)

� EBIT-margin incl. ~ -1 pp from FX

12.6%EBIT-margin

8.1%EBIT-margin

7.3%EBIT-margin

2.6%EBIT-margin

21

12M order entryin € million

Changein %

Net of currency

effects in %

Europe +2,6 +2,2Americas +7,7 - 1,3

Asia-Pacific +8,4 - 0,8

MEAO* +6,1 - 0,2

Total +4,8 +0,8

* Middle East, Africa & Others

Key FiguresDräger Group

221 Values at due date2 EBITDA and accordingly EBIT of the last twelve months

12M 2014 12M 2015

million € million €

Cashflow from operating activities 188.0 39.9 -78.8

Investments 124.7 196.8 57.8

Cash and cash equivalents1 296.9 172.8 -41.8

Net financial debt1 10.7 145.3 >100

Net financial debt 1 /EBITDA 2 0.04 0.96

Capital employed 1 1,107.2 1,269.3 14.6

ROCE (EBIT 2 /Capital employed 1) 16.1% 5.3%

Net Working Capital1 539.4 582.3 7.9

Equity ratio 40.1 40.9 2.0

EPS per common shares 5.67 1.83 -67.7 EPS per preferred shares 5.73 1.89 -67.0

EPS per common shares (on full distribution) 4.52 1.40 -69.0 EPS per preferred shares (on full distribution) 4.58 1.46 -68.1

Change

%

71.8 55.3

Q4‘14 Q4‘15

107.646.2

FY14 FY15

Business developmentMedical division

Net Sales

EBIT

514.1

550.6

Q4‘14 Q4‘15

1,577.2

1,698.8

FY14 FY15

+3.9%Currency adjusted

+3.1%Currency adjusted

-23% -57%14.0%EBIT-margin

10.0%EBIT-margin

6.8%EBIT-margin

2.7%EBIT-margin

23

� Order entry Q4 cc -7.7%

� Book to bill 0.97

� Gross profit margin (yoy)12M yoy -1.6 pp

� 12M Functional Expenses yoy +12.7% (cc, excl. restructuring +4.3%)

� EBIT-margin incl. ~ -1 pp from FX

12M Order Entryin € million

Changein %

Net of currency

effects in %

Europe +1,6 +1,3Americas +8,5 +0,0

Asia-Pacific +7,6 - 2,1

MEAO* +9,9 +2,7

Total +4,9 +0,6

* Middle East, Africa & Others

25.511.2

Q4‘14 Q4‘15

71.0

20.5

FY14 FY15

Business developmentSafety division

Net Sales

EBIT

255.7274.8

Q4‘14 Q4‘15

857.5910.1

FY14 FY15

+5.3%Currency adjusted

+2.7%Currency adjusted

-56% -71%10.0%EBIT-margin

4.1%EBIT-margin

8.3%EBIT-margin

2.3%EBIT-margin

24

* Middle East, Africa & Others

� Order entry Q4 cc -5.3%

� Book to bill 0.97

� Gross profit margin (yoy)12M yoy -2.2 pp

� 12M Functional Expenses yoy +14.9% (cc, excl. restructuring +7.6%)

� EBIT-margin incl. ~ -1/2 pp from FX

12M Order Entryin € million

Changein %

Net of currency

effects in %

Europe +4.2 +3.6Americas +6.1 - 4.4

Asia-Pacific +10.0 +2.0

MEAO* - 4.6 - 8.4

Total +4.8 +1.3

Europe AmericasAfrica, Asia,

Australia Dräger Group

Order intake € million

Medical € million

Safety € million

Net sales € million

Medical € million

Safety € million

EBITDA € million

EBIT € million

Investments € million

€ million

DVA € million

Medical Safety

Order intake € million

Net sales € million

EBITDA € million

EBIT € million

Capital employed

New reporting structure Regions and Segments

� Detail on Group level remains unchanged

� EBIT of Medical and Safety uses allocation keys to distribute functional expenses

� Restatement of prior years Medical and Safety will be provided with the Q1 2016 results

Comment

25

OUTLOOK

2014 2015

1.33 €

0.13 €

Dividend proposal 2015

* after earnings attributable to non-controlling interests** Without minimum dividend, after taxes

Dividend percommon share preferred share Dividend policy

2014 (in EUR million) 2015 (in EUR million)

Net profit* 104.7 33.3

Dividend 31.6 3.7

� Participation certificates** 8.2 0.9

� Common shares 13.5 1.3

� Preferred shares 9.9 1.4

Net payout ratio 30.1% 10.9%

27

2014 2015

1.39 €

0.19 €

Until earnings development has significantly improved and stabilized, Dräger will retain generated earnings to the greatest extent and only pay out a minimum dividend.

The company considers share buybacks for the appropriation of earnings in the future.

Outlook

2015 2016e 2017e

Net Sales + 2.9%(net of currency effects)

0.0% – 3.0%(net of currency effects)

Slight increasecompared to prior year

(net of currency effects)

EBIT margin 2.6% 3.5% – 5.5%* improvement*

Gross profit margin 44.9% Below prior year

Cash flow fromoperational activities

59.8% EBIT

> 60% of EBIT

Equity ratio 40.9% increase

* based on exchange rates at the start of the year 2016

28

Assumptions for FY 2016 Guidance

� Cool down in Europe

� Risk of recession in additional countries

� No significant improvement in Emerging Markets and in markets that are connected to the commodity prices

� Slow start into 2016 due to low orders on hand at the beginning of year

� Negative FX effects of ~1 pp on net sales and ~0.5 pp on EBIT-margin

� Restructuring cost of EUR ~10 million

29

Questions & Answers

30

Appendix

Dräger management

Fifth generation of the Dräger family to lead the company

Executive Board member for Finance and IT (Chief Financial Officer)

At Dräger since 2008

Chairman of the Executive Board (Chief Executive Officer)

At Dräger since 1992

Executive Board member for R&D, IP, Quality and Productmanagement

At Dräger since 2010

Executive Board member for Purchasing, Production and Logistics

At Dräger since 2015

Stefan Dräger Anton SchrofnerGert-Hartwig Lescow

Rainer Klug Dr. Reiner Piske

Chief Human Resources Officer

At Dräger since 2015

Africa, Asia, AustraliaAmerica Europe

31

32

Profiles of the new board members

Guidance 2016

33

Results achieved in 2015 Forecast 2016

Net sales+2.9%

(net of currency effects)Between 0 - 3%

(net of currency effects)

EBIT margin 2.6% Between 3.5 - 5.5%1

Dräger Value Added EUR -46.3 million improvement

Other forecast figures:

Gross margin 44.9% below prior year

Research and development costs EUR 231 million EUR 225 - 235 million

Interest result EUR -17.2 million On prior year's level

Effective tax rate 32.8% Between 30 - 33%

Days working capital (DWC) 121.2 days 119 - 121 days

Operating cash flow 59.8% of EBIT >60% of EBIT

Investment volume EUR 196.8 million EUR 110 - 120 million

Equity ratio 40.9% increase

Net financial debt EUR 145.3 million improvement

1 Based on exchange rates at the start of the year

Business developmentDräger Group

34

Q4 2014 Q4 2015 12M 2014 12M 2015

€ million € million € million € million

Order Intake 672.1 637.2 -5.2 1 2,415.5 2,532.2 4.8 1

Net Sales 769.7 825.4 7.2 1 2,434.7 2,608.9 7.2 1

Gross Profit 364.6 378.1 3.7 1,138.0 1,171.7 3.0 Gross margin 47.4% 45.8% 46.7% 44.9%

R&D 56.6 56.2 -0.8 -212.0 -231.1 -9.0 % of Net Sales 7.4% 6.8% -8.7% -8.9%

SG&A 206.7 250.8 21.4 -749.2 -861.2 -15.0 % of Net Sales 26.9% 30.4% -30.8% -33.0%

Functional Expenses 267.4 310.9 16.3 -967.8 -1,098.4 -13.5 % of Net Sales 34.7% 37.7% -39.7% -42.1%

EBITDA 119.8 88.9 -25.8 255.6 150.9 -41.0 EBITDA Margin 15.6% 10.8% 10.5% 5.8%

EBIT 97.3 66.5 -31.7 178.6 66.7 -62.7 EBIT Margin 12.6% 8.1% 7.3% 2.6%

Interest Result -25.0 -17.2 31.4

Tax rate 31.8% 32.8%

Net Profit 104.7 33.3 -68.2

DVA 81.6 -46.3

1 Currency adjusted 12M: order intake +0.8%, net sales +2.9%

Currency adjusted quarter: order intake -6.9%, net sales +4.4%

Change

%

Change

%

Business developmentMedical and Safety division

35

Medical Division Q4 2014 Q4 2015 12M 2014 12M 2015

€ million € million € million € million

Order Intake 437.1 411.0 -6.0 1 1,569.8 1,646.0 4.9 1

Net Sales 514.1 550.6 7.1 1 1,577.2 1,698.8 7.7 1

EBIT 71.8 55.3 -23.0 107.6 46.2 -57.1

EBIT Margin 14.0% 10.0% 6.8% 2.7%

DVA 47.2 -19.5 >-100

1 Currency adjusted 12M: order intake +0.6%, net sales +3.1%.

Currency adjusted quarter: order intake -7.7%, net sales +3.9%

Safety Division Q4 2014 Q4 2015 12M 2014 12M 2015

€ million € million € million € million

Order Intake 235.0 226.2 -3.8 1 845.7 886.2 4.8 1

Net Sales 255.7 274.8 7.5 1 857.5 910.1 6.1 1

EBIT 25.5 11.2 -56.1 71.0 20.5 -71.2

EBIT Margin 10.0% 4.1% 8.3% 2.3%

DVA 47.6 -6.7 >-100

1 Currency adjusted 12M: order intake +1.3%, net sales +2.7%.

Currency adjusted quarter: order intake -5.3%, net sales +5.3%

Change

%

%

Change

%

Change

%

Change

Functional Expenses

36

Q4 2014 Q4 2015 12M 2014 12M 2015Change FX adj.

€ million € million € million € million %

R&D 56.6 56.2 -0.8 -212.0 -231.1 -9.0 -3.7 % of Net Sales 7.4% 6.8% -8.7% -8.9%

SG&A 206.7 250.8 21.4 -749.2 -861.2 -15.0 -10.7 % of Net Sales 26.9% 30.4% -30.8% -33.0%

Functional Expenses total 267.4 310.9 16.3 -967.8 -1,098.4 -13.5 -8.6 % of Net Sales 34.7% 37.7% -39.7% -42.1%

Change Change

%%

2,311.4

1,400.9

Consolidated balance sheet

€ million

Change31 Dec 201531 Dec 2014Assets

-3.61,452.6Current assets

3.5

8.2

4.5

-41.8

402.0

711.3

114.8

172.8

388.5

657.4

109.9

296.9

Inventories

Trade receivables

Other current assets

Cash and cash equivalents

16.1907.2781.5Non-current assets

19.6

16.1

8.6

351.8

406.4

149.0

294.2

349.9

137.3

Intangible assets

Property, plant and equipment

Other non-current assets

%€ million

3.52,234.1Total assets

37

2,311.4

21.8

288.1

138.1

97.8

Consolidated balance sheet

€ million

Change31 Dec 201531 Dec 2014Equity and liabilities

9.3819.6750.1Current liabilities

23.1

32.9

-7.4

-0.6

233.0

169.7

186.4

230.5

189.3

127.7

201.3

231.8

-7.1545.9587.4Non-current liabilities

4.3

-3.0

-18.1

-3.1

20.9

297.0

168.6

100.9

Liabilities from participation certificates

Provisions for pensions and similar obligations

Non-current interest-bearing loans

Other non-current liabilities

5.5945.9896.6Equity

%€ million

3.52,234.1Total equity and liabilities

Current provisions

Current loans and liabilities to banks

Trade payables

Other current liabilities

38

Cash-flow statement

39

12M 2014 12M 2015€ million € million

Group net profit 104.7 33.3 -68.2

Change in inventories -1.2 -5.4 >-100

Change in accounts receivables 1.6 -44.6 >-100

Change in accounts payables 25.2 -22.8 >-100

Depreciation and amortization 77.0 84.2 9.4

Other operating cash flow items -19.3 -4.8 74.9

Operating cash flow 188.0 39.9 -78.8

Investing cash flow -102.6 -167.0 -62.7

Free cash flow 85.4 -127.1 >-100

Financing cash flow -26.3 -1.3 95.1

Change in cash 1 59.0 -128.4 >-100

Cash and cash equivalents 2 296.9 172.8 -41.8

1 Change in cash and cash equivalents, i.e. without any effect of exchange rates2 Values at due date

Change%

March 9, 2016 - Accounts press conference, Lübeck- Analysts meeting, Frankfurt

April 26, 2016 - Report for the first three months 2015 Conference call, Lübeck

April 27, 2016 - Annual shareholders' meeting, Lübeck

July 28, 2016 - Report for the first six months 2015 Conference call, Lübeck

November 3, 2016 - Report for the first nine months 2015 Conference call, Lübeck

Financial calendar

40

41

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

melanie.kamann@draeger.com thomas.fischler@draeger.comwww.draeger.com www.draeger.com

Contact