INVESTOR RELATIONS PRESENTATION - DURR · Balancing. Dürr 46%, CEMB 16%, Kokusai 8% . ... end of line End of line assembly ... CCI, Investor Relations Presentation, Bietigheim-Bissingen,

INVESTOR RELATIONS PRESENTATION

Bietigheim-Bissingen, May 2018

www.durr.com

Corporate Communications & Investor Relations Dürr AG

2© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, May 2018

DISCLAIMER

This publication has been prepared independently by Dürr AG/Dürr Group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results,

events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not

limited to those described in Dürr´s disclosures, in particular in the chapter “Risks” in Dürr’s annual report. Should one or more of these risks, uncertainties and other factors

materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those

described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,”

“estimate,” “will,” “project” or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of

developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external

agencies.

Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International

Financial Reporting Standards). Dürr’s net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics.

Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The

calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial

metrics used at Dürr can be found in our financial glossary on the Dürr web page (http://www.durr.com/investor/service-faqs-glossar-contact/glossary/financial-glossary/).

3

AGENDA

1. Executive Summary

Our five divisions2.

Group strategy3.

Group financials, markets and outlook4.

© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, May 2018

Worldwide leading supplier of efficient production

technologies with outstanding digital expertise driven by

automation, digitization and networked production

Major customer groups: automotive, furniture and general

industry

Asset light business model with pronounced focus on

capital employed; strong ROCE and high cash flow

potential

Expanding service business with healthy margins and

further growth potential

Group structure with efficient processes; further growth via

acquisitions. HOMAG can be seen as a blueprint for

further acquisitions

4

1. EXECUTIVE SUMMARY


Market shares between 30 and 60% in different machinery

and engineering activities

Strong emerging markets presence with ca.

50% share of global incoming orders

Share of current incoming orders: 55% automotive

business, 45% general industry, e.g. furniture, machinery

Net exposure to combustion engine technology negligible

High entry barriers with limited number of competitors

Business drivers:

Greenfield: growing markets

Brownfield: replacement potential

Service: installed base

Automation, digitization & networking

5

1. EXECUTIVE SUMMARY

Dürr: global leader in strong competitive position


Fast factsCustomers

6

AGENDA



Group strategy3.



Paint andFinal AssemblySystems

• Incoming orders€ 1,210 m (1,094 m)

• Sales € 1,175 m (1,140 m)

• EBIT € 70 m (77 m)

• Operating EBIT€ 70 m (82 m)

• EBIT margin6.0% (6.8%)

• Operating EBIT margin6.0% (7.2%)

ApplicationTechnology

• Incoming orders € 603 m (583 m)

• Sales € 622 m (561 m)

• EBIT € 65 m (76 m)


• EBIT margin10.4% (13.6%)


Clean TechnologySystems

• Incoming orders € 166 m (177 m)

• Sales€ 186 m (167 m)

• EBIT € 3 m (6 m)




Measuringand ProcessSystems

• Incoming orders2

€ 543 m (683 m)

• Sales2

€ 511 m (624 m)

• EBIT2

€ 64 m (80 m)

• Operating EBIT2

€ 65 m (80 m)

• EBIT margin12.6% (12.8%)


WoodworkingMachinery andSystems

• Incoming orders € 1,366 m (1,165 m)

• Sales € 1,219 m (1,082 m)

• EBIT € 83 m (45 m)




7

2. OUR FIVE DIVISIONS

Divisional breakdown 20171 (2016)


Dürr AG

1 FY 2017 and Q1 2017 figures shown in the entire presentation are adjusted due to IFRS 15 changes2 decline due to sale of Ecoclean as of March 2017

8

2. MARKET SHARE DÜRR/COMPETITORS1


Paint Dürr 50%, Eisenmann 10-15%, Taikisha/Geico 20%

local competitors: AE, Giffin, Gallagher Kaiser, Trinity (Toyota)

Final Assembly Dürr, Rofa, Scivic, Siemens, Eisenmann

Paint and Final Assembly Systems

Dürr ~50%, ABB ~20%, Fanuc ~15%, Yaskawa ~10%; local competitor: DoolimApplication Technology

Dürr, John Zink/KEU, CTP, MEGTEC, Anguil, EisenmannClean Technology Systems

Dürr 31%, Biesse 12%, scm group 11%, Schelling/IMA 7%; local competitors: Nanxing, KTDWoodworking Machinery

and Systems

Balancing Dürr 46%, CEMB 16%, Kokusai 8%

Filling Dürr 48%, Fives 16%, SAT 8%

Testing Dürr 50%, Burke Porter Group 21%, Fori 10%

Measuring and

Process Systems

1 own estimates, average of last 3 years

Turn-key paint shops for the automotive industry (OEMs, suppliers)

Final assembly systems (e.g. conveyor equipment, control systems)

Service and modernization of existing sites

9

2. PAINT AND FINAL ASSEMBLY SYSTEMS

Paint shops and final assembly systems


1 including extraordinary expenses in connection with the closure of a smaller plant in Austria (€ 4.9 m)2 including extraordinary expenses of € 5-10 m due to the FOCUS 2.0 optimization program

in € m 2016 2017 2018e Q1 2017 Q1 2018

Incoming

orders1,094 1,210 1,000-1,200 268.3 274.2

Sales

revenues1,140 1,175 1,100-1,200 275.4 270.2

EBIT 771 70 - 17.0 12.4

EBIT

margin6.8%1 6.0% 4.0-5.0%2 6.2 4.6

ROCE >100% >100% >100% >100%3 48.1%3

1 including extraordinary expenses in connection with the closure of a smaller plant in Austria (€ 4.9 m)2 including extraordinary expenses of € 5-10 m due to the FOCUS 2.0 optimization program

3 annualized

10


E-mobility: new OEMs enlarge market base


Faraday Future US

BeeCloud

11

2. PAINT AND FINAL ASSEMBLY SYSTEMS: OPTIMIZATION

PROGRAM


Re-allocation of OEM spending to

new product developments 2015/2016

Continued cost pressure and unfavorable

pricing

Local competitors gaining

market shares in Asia Pacific

PRODUCT

COSTEFFICIENCY

BUSINESS

PORTFOLIO &

GROWTH ORGANIZATION

Action required for

Paint and Final

Assembly Systems

Product cost

Reduction product

costs

Plastic painting –

new setup

Efficiency

Capacity adjustment

Optimization

manufacturing footprint

Sales process

optimization

Business portfolio &

growth

Service growth

Digital Factory

China: increase of

local competencies

Final assembly

repositioning

Organization

Global structure of

System Center/

Business Center

Optimization Dürr

Systems Group: closer

cooperation within the

divisions

12


Optimization program FOCUS 2.0: 6-7% EBIT margin goal in 2020


High-tech systems and software for automated paint application, glueing

processes and seam sealing (e.g. robots, atomizers, color change

systems, quality assurance)

Interior painting automation potential

Economic lifetime of paint robots: 12-15 years replacement cycle just

beginning

Strong service potential (e.g. spare parts) due to increased installed base

13

2. APPLICATION TECHNOLOGY

Paint application, glueing and sealing technology


1including extraordinary income of € 17 m²annualized

in € m 2016 2017 2018e Q1 2017 Q1 2018

Incoming

orders583 603 600-650 157.1 168.6

Sales

revenues561 622 600-650 134.2 145.5

EBIT 761 65 - 13.9 15.2

EBIT

margin13.6%1 10.4% 10.0-11.0% 10.4% 10.4%

ROCE 40.0%1 29.2% 27-32% 27.0%2 25.3%2

Application products: components & automated paint solutions

Complete range of application products for general industry (e.g.

plastics, wood, furniture, construction)

Dürr automotive robot also used for painting of larger industrial

products

Pre-installed and ready2spray compact robot system, jointly developed

by Kuka and Dürr. Kuka provides the compact robot and Dürr the paint

application technology integrated solution is unique to the market.

Target: € 50 m revenue by 2020

14

2. APPLICATION TECHNOLOGY

Addressing new markets: General industry


31%

31%

23%

8%

7%

Graco

Others

Nordson

Finishing Brands

Iwata

Competition1

1 Addressable market ~ € 1.5 bn

15

2. PAINT BUSINESS1


BUSINESS DRIVERSTYPE

Expansion of capacity in new and existing locations

Replacement of old and non-productive plants

Increased quality requirements especially in the emerging markets

Efficiency enhancements: cost reductions (e.g. energy, material); cycle times

Flexibility: addition of new models/facelifts to existing painting lines

Automation: e.g. interior painting of vehicles

Environmental regulation: stricter emissions laws

Continuous demand: spare parts, upgrades, training

Wear & tear of aging installed base: smaller modernizations and upgrades

Greenfield

Brownfield

Service

1 Divisions Paint and Final Assembly Systems and Application Technology

Incoming orders increased by 90% within 9 years, mostly due to higher demand in brownfield & service business

16

2. PAINT BUSINESS1

Brownfield with growing importance


1 Divisions Paint and Final Assembly Systems and Application Technology

61%15%

24%

48%

24%

28%

Greenfield Brownfield Service

35%

35%

30%

Incoming orders 2008: € 950 m Incoming orders 2017: € 1,812 m Incoming orders 2022e

Drivers: regulation (clean air), environmental issues

Customer split: 25% automotive; 25% chemistry, petrochemistry,

pharmacy; 50% other industries

Streamlining at loss making energy efficiency technologies in

process

EBIT margin goal: 6-7% in 2020

17

2. CLEAN TECHNOLOGY SYSTEMS

Exhaust air purification systems & energy efficiency systems


in € m 2016 2017 2018e Q1 2017 Q1 2018

Incoming

orders177 166 190-220 56.6 57.6

Sales

revenues167 186 180-200 38.6 30.3

EBIT 6 3 - 0.4 -1.0

EBIT

margin3.7% 1.8% 3.0-4.0% 1.1% -3.2%

ROCE 13.6% 5.5% 15-20% 3.3%1 -5.9%1

1 annualized

High market shares in all businesses

Positioned globally with a high degree of localization

Strong footprint in China with local production, R&D etc.

18

2. MEASURING AND PROCESS SYSTEMS

Highly profitable machinery niches with global presence


1 Due to sale of Ecoclean business as of March 31, 2017 (2016: business volume € ~ 200 m) not fully comparable

2 annualized

in € m 2016 2017 2018eQ1 2017

without

Ecoclean

Q1 2018

Incoming

orders683 5431 430-4601 125.2 103.4

Sales

revenues624 5111 440-4801 99.6 99.4

EBIT 80 641 - 10.8 10.4

EBIT

margin12.8% 12.6% 12.5-13.5% 10.9% 10.5%

ROCE 24.9% 24.6% 30-35% 19.9%2 16.2%2

Filling

Assembly & testing

Balancing

19

2. MEASURING AND PROCESS SYSTEMS

Three strongly performing machinery niche players

Balancing of rotating parts and components for

many manufacturing industries, service centers

Filling of appliances (refrigerators, air

conditioners and others)

Filling automotive – end of line

End of line assembly and testing equipment for

the automotive industry


Product range from stand-alone machines through to complete,

automated production lines for efficient woodworking

Major customers: Furniture industry, construction supplies and timber

home construction

Strong need for automation: Batch one production, fully digitized

process from order to delivery

31% market share, biggest customer: IKEA (~ 5% of sales)

20

2. WOODWORKING MACHINERY AND SYSTEMS

World market leader HOMAG Group acquired to capture automation trend in the industry


in € m 2016 2017 2018e Q1 2017 Q1 2018

Incoming

orders1,165 1,366 1,350-1,500 400.9 415.2

Sales

revenues1,082 1,219 1,300-1,400 296.8 294.6

EBIT 45 83 - 20.3 19.7

EBIT

margin4.1% 6.8% 7.5-8.0% 6.8% 6.7%

ROCE 11.3% 22.0% 25-30% 22.7%1 19.9%1

¹ annualized


Transformation for substantial value creation


"Fix the house"

2016/2017

Optimize portfolio

Standardization

Efficiency improvement in

functions and processes

Develop project business

ONE HOMAG

Sustainable

profitable growth

2018/2019

Profitable system business

Complementary products

Softwarehouse / IoT

Service excellence

Innovation push

Internationalization

2017/2018

Innovation program

Global footprint in production and

engineering

Localization of

sales & service

21

© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, May 2018 22

Transformation of global sales into efficient solution selling experts

Global Engineering and production footprint

Focus on whole supply chain to efficiently deliver the growth

Smart@Work: Lean Six Sigma

Digital IoT Platform tapio

Softwarehouse


Transformation for substantial value creation

China accounts for ca. 40% of world furniture production

HOMAG: China order share increased from 12% in 2014

to 16% in 2017

Tier-1 and tier-2 sales split will turn from dominant tier 1

contribution towards higher tier-2 share

Measures

Expansion of product range towards simpler and cheaper

solutions & standardization of machines

Expansion of manufacturing capacity to a production

volume of € ~150 m within the next years

Rollout of new sales concept with strong key account

management, also in China

Service capacity increase due to machinery sales growth

Increase local engineering & development capacity


Enabling HOMAG to tap market potential in China


HOMAG China order intake

65

82

108 113

146

216

0

50

100

150

200

250

2012 2013 2014 2015 2016 2017

in € m

23

24

AGENDA



Group strategy3.



25

3. DÜRR STRATEGY 2020


Dürr strategy 2020 targets: up to € 5bn sales, 8-10% EBIT margin, >30% ROCE

20%

8%

28%3%

41%

Invest Energy Personnel Service Material

26

3. STRATEGY

Innovation: R&D efforts focused on tangible customer value


Cost per unit in a paint shop

Ø cost per unit in a current paint shop

= € 3201

1 Compared to € 420 15 years ago

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

kWh/unit

Reduction of resource consumption/emissions in paint shops of a German OEM

0.0

0.5

1.0

1.5

2.0

m³/unit

0

0.5

1

1.5

2

2.5

3

3.5

kg/unit

0

1

2

3

4

5

6

l/unit

Energy Paint²Water VOC

-67% -71% -73%

-36%

2 In spray booth only

27

3. STRATEGY

Innovation: digital@DÜRR – 4 smart dimensions


• e.g. iTAC.MES.Suite,

ADAMOS IIoT platform,

digital market places LOXEO

and tapio

• e.g. predictive maintenance,

documentation/maintenance

via pad, internet, QR code

Smart

Products

Smart

Processes

Smart

Factories

Smart

Services

• e.g. on-demand energy supply

for ovens, smart pumps with

reduced maintenance efforts

• e.g. virtual commissioning,

virtual engineering, additive

manufacturing

Founding partners ADAMOS GmbH:

DMG Mori, Dürr, Software AG, Carl Zeiss, ASM

Establish ADAMOS as industry standard

On edge, on premise and in the cloud

Leading edge technologies

Large combined installed base

"White label" solution allows for

company-individual IIoT market places

ADAMOS App Factory develops new apps

28

3. STRATEGY

Innovation: Full line IIoT offering reinforces leading market position against pure software providers


ADAMOS: Adaptive Manufacturing Open Solutions

Next step: Scaling up ADAMOS by integrating

additional partners from the machinery industry.

Latest partners: ENGEL & Karl Mayer

LOXEO and tapio: market places for IIoT apps and digital services

Suppliers’ and competitors’ machines can also take part and contribute

information/data

No software vendor lock-in

Dürr Digital Factory: 70 specialists develop new apps

3. STRATEGY: DIGITAL SOLUTION PROVIDER FOR OUR

CUSTOMERS

Two digital market places as enablers for digital manufacturing


Customer benefit of LOXEO and tapio:

optimizing production, increasing system availability

29

30

3. STRATEGY

Globalization: High investments in network of locations – reinforcement of local activities


in € m 2013 2014 2015 2016 2017

Capex 51.2 54.9 102.3 81.9 88.0

Acquisitions 34.8 242.1 42.0 13.6 15.3

Total 86.0 297.0 144.3 95.5 103.3

Extension of global presence: Reinforcement of new markets

but also investments in established markets of North America

and Germany with good prospects

15 production, test and engineering centers: extended,

modernized or newly built

Campus concept transferred to key locations: more efficient

processes, open communication and sustainable energy

concept

Capex spending in 2018e: € 75-85 mNew Dürr Campus in Shanghai, China

31

3. STRATEGY

Acquisition course to be continued / HOMAG takeover as a blueprint for acquisitions


Criteria for major „HOMAG II“ acquisition

Target areas: mechanical engineering,

automation technology, measuring systems,

environmental

World market & innovation leadership

No restructuring cases but earnings

improvement and synergy potential

Making use of Dürr‘s excellent positioning

in global/emerging markets

Corporate culture should fit

Sales size up to € 1.5 billion

Valuation must be reasonable

2018: Some bolt-on acquisitions under way

e.g. increase HOMAG participation (64%)

32

3. STRATEGY

Service: Long-term target 30% of sales


2014 2015 2016 2017

Sales revenues (in € m) 634.1 884.9 981.9 947.0

In % of group sales 24.6 23.5 27.5 25.5

Strengthening service business and capacities in emerging

markets (e.g. China, India, Mexico) with disproportionately

high potential

Service pricing, dedicated offerings, complaint management

system, decentralized ware-housing, delivery speed

2017: Service sales +1% on a like-for-like basis

Q1 2018: Service share at 26.7%

CAGR since 2012: 13%

38%

44%

18%

Modifications and upgrades

Spare parts and repairs

Maintenance, assessments, seminars

33

3. STRATEGY

Service


Service type in % of revenues

0

2,000

4,000

6,000

8,000

10,000

12,000

Number of paint robots sold (cumulative figure)

Further globalization of Dürr processes

Global processes with full utilization of SAP/CAX/CRM/SharePoint

Global IT platforms, integrated systems, one single database, continuous capex spending

Expansion of sourcing offices and manufacturing in China, India, Mexico, Brazil

Rigorous localization of Dürr products in the emerging markets

Supplemental product portfolio with low-cost/low-end solutions; local added value

Reduction of specifications

Consistent portfolio optimization to improve profitability

Example: Sale Dürr Ecoclean 2017

Cash inflow € 108 m, book gain € 23 m

Low-margin business

Focus on conventional power train technology (internal combustion engine) with limited growth perspective

Further optimizations among others: Aircraft assembly technology sold in 2014; French production facility sold in 2014;

Austrian workshop closed in 2016; Energy efficiency streamlining started in H1 2017, e.g. closure of Dürr thermea

34

3. STRATEGY

Efficiency: Global processes, localization & portfolio optimization


35

AGENDA



Group strategy3.



36

4. INCOMING ORDERS REACHED NEW RECORD HIGH


in € m 2015 2016 2017 Q1 2017 Q1 2018

Incoming orders 3,467.5 3,701.7 3,888.7 1,044.5 1,019.1

Orders on hand (end of period) 2,465.7 2,568.4 2,535.1 2,636.7 2,705.3

Sales 3,767.1 3,573.5 3,713.2 890.3 840.1

Gross profit on sales 828.0 858.3 857.2 217.3 198.6

Gross margin (%) 22.0 24.0 23.1 24.4 23.6

EBIT 267.8 271.4 287.0 86.2 51.1

EBIT before extraordinary effects 294.3 286.4 279.2 65.7 55.6

EBIT margin (%) 7.1 7.6 7.7 9.7 6.1

EBIT margin (%) before

extraordinary effects7.8 8.0 7.5 7.4 6.6

Net income 166.6 187.8 199.6 61.4 34.5

Earnings decline in Q1 2018 strongly impacted by one-offs

37

4. CHANGED PREPAYMENT PATTERN

Cash flow improvement in 2018 expected


in € m 2014 2015 2016 2017 Q1 2017 Q1 2018

EBT 204.7 244.5 258.1 267.3 80.6 47.8

Other aggregated items of cash

flow12.3 66.3 2.9 31.0 0 -24.6

Net working capital changes 74.3 -137.8 -33.6 -178.5 -84.7 -99.5

Cash flow from operating

activities291.2 173.0 227.4 119.8 -4.1 -76.3

Interest paid (net) -16.6 -10.4 -15.8 -17.9 -8.2 -8.0

Capex -53.6 -99.8 -81.6 -87.5 -18.3 -12.8

Free cash flow 221.1 62.8 129.9 14.3 -30.6 -97.1

Decline in cash flow due to increase in NWC

NWC increase due to a changed payment pattern of customers (lower prepayments) and need for higher inventories

38

4. NWC: NO FURTHER DETERIORATION IN THE NEXT QUARTERS

TO BE EXPECTED


in € m 03/31/2017 12/31/2017 03/31/2018

Materials and supplies (net) 166.9 181.3 202.9

+ Work in process from small series production 112.4 105.4 122.3

+ Finished goods and merchandise (net) 107.2 111.8 129.4

+ Prepayments to suppliers 59.4 59.1 76.0

+ Inventories and prepayments 445.9 457.6 530.6

+ Total trade receivables 555.3 533.3 508.3

+ Total contract assets 387.8 488.4 472.5

- Trade payables (incl. liabilities from notes payable) 368.3 390.5 388.1

- Total contract liabilities 732.0 715.2 653.8

= Net working capital 288.7 373.7 469.5

███ included in total balance (total work in process less billings)

39

Balance should stay slightly negative or at around zero in the future

Work in process balance adjusted to IFRS 15 requirements

Prepayments as a stand-alone figure will not be shown anymore in the future

in € m 03/31/2017 12/31/2017 03/31/2018

Assets

Total contract assets 387.8 488.4 472.5

Work in process from small series production 112.4 105.4 122.3

Liabilities

Total contract liabilities -732.0 -715.2 -653.8

Total balance (Total work in process less billings) -231.8 -121.3 -59.0

4. WORK IN PROCESS BALANCE: STILL AN OVERHANG OF

CUSTOMER PAYMENTS


40

4. SOLID FINANCIAL RATIOS


12/31/2014 12/31/2015 12/31/2016 12/31/2017 03/31/2018

Equity in € m 725.8 714.4 831.0 900.5 926.8

Equity ratio in % 24.4 23.9 24.8 25.6 26.7

Net financial status in € m 167.8 129.4 176.5 191.5 94.1

Net working capital in € m 87.6 236.8 194.4 373.7 469.5

DWC (days working capital) 12.2 22.9 27.2 36.2 50.3

ROCE in % 38.7 45.3 41.11 39.41 24.12

Equity ratio increased to 26.7% in Q1 2018; equity ratio of 30% as long-term goal

Net financial status expected to reach € 200-240 m at year end 2018

DWC target of 40 in 2018

ROCE for FY 2018 should reach the guided range of 30-40%

1 adjusted for the sale of Dürr Ecoclean2 annualized

41

4. FURTHER GROWTH IN THE CAR MARKET


20.3 20.2 22.3

22.3 22.925.4

21.7 22.224.9

27.3 29.0

34.9

2.43.0

3.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2017 2018 2022

Others China Asia (w/o China) Europe Americas

+3%

Growth drivers until 2022: China, India, South East Asia, Russia & Iran

1 Light vehicles production

Source: PwC, Autofacts

Last update: April 2018

Ʃ 94.0 Ʃ 97.3

Ʃ 111.1

+25%

+6%

+2%

+3%

+3%

+5%

+5%

+3%

+3%

+4%CAGR

in m units1

-1%

42

4. TRADITIONAL OEMS WITH HIGHER INVESTMENTS1

IN 2018 AND 2019


in € bn 2012 2013 2014 2015 2016 2017 2018e 2019e

BMW 5.0 6.6 6.0 5.8 5.7 6.9 6.5 7.1

Daimler 6.4 6.7 6.1 6.8 8.4 8.6 10.5 9.5

FCA 5.4 5.5 5.9 6.7 6.3 6.1 5.9 5.9

Ford 4.2 5.1 5.7 6.2 6.4 6.1 6.1 6.5

GM 6.2 6.2 5.4 6.7 8.7 7.0 6.9 7.0

Renault 1.9 2.5 2.4 2.7 2.0 3.4 3.5 3.7

PSA 1.9 2.2 2.2 2.8 3.3 3.8 4.9 5.0

VW 12.9 15.1 16.1 17.8 18.5 17.9 18.0 18.6

Total 43.9 49.9 49.8 55.5 59.3 59.8 62.3 63.3

1 Capex spending incl. capitalized R&D, Source: Deutsche Bank

43

Strong growth in markets for rest of decade

2,6823,135

583

703285

390

0

1,000

2,000

3,000

4,000

5,000

2016 2020e

Machinery for wooden houses

Machinery for doors, windows, flooring

Furniture machinery market

Sources: CSIL, Euroconstruct,

Holzbauverband, competitor data,

regional expert evaluation

Ʃ 3,550

Ʃ 4,229

CAGR +4%

4. WOODWORKING MACHINERY MARKETS

in € m

83% 14% 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

HOMAG Sales Share

+4%

+5%

+8%

39%

12%

5%4%

4%

36%

Furniture production breakdown

China

US

Germany

Italy

India

Other


Sales in € m

2,575

3,7673,574

3,713

3,700-3,900

2014 2015 2016 2017 2018e

44

4. OUTLOOK: FURTHER GROWTH IN SALES EXPECTED


8.6

7.17.6 7.8

7.0-7.5

2014 2015 2016 2017 2018e

EBIT margin in %

2,793

3,4673,702

3,889

3,600-3,900

2014 2015 2016 2017 2018e

Order intake in € m

Declining EBIT margin due to swing in extraordinary effects (extraordinary effects 2018e: € 15-20 m, thereof € 5-10 m

for FOCUS 2.0 optimization program at Paint and Final Assembly Systems)

EBIT margin before extraordinary effects approx. stable

23.022.0

24.0 23.1 23.5

2014 2015 2016 2017 2018e

Gross margin in %

06/06/2018 Deutsche Bank Conference, Berlin

06/08/2018 SGCIB Nice Conference, Nice

08/09/2018 Interim financial report for the first half of 2018, analysts/investors call

08/29/2018 Commerzbank Sector Conference, Frankfurt

09/26/2018 Baader Investment Conference, Munich

11/08/2018 Interim statement for the first nine month of 2018, analysts/investors call

11/13/2018 UBS European Conference, London

45

4. FINANCIAL CALENDAR


Günter Dielmann

[email protected]

+49 7142 78-1785

Stefan Tobias Burkhardt

[email protected]

+49 7142 78-3558

Mathias Christen

[email protected]

+49 7142 78-1381

Dürr Corporate Communications & Investor Relations Contact


Appendix

47

NEW MANAGEMENT BOARD STRUCTURE


Dr. Jochen WeyrauchMember of the Board

Paint and Final Assembly

Systems

Clean Technology Systems

Information Technology

Corporate Development

(including M&A)

Carlo CrosettoCFO

Finance / Controlling

Investor Relations

Risk Management

Legal Affairs / Patents

Global Sourcing

Corporate Social

Responsibility

Ralf W. DieterCEO

Application Technology,

Measuring and Process

Systems and Woodworking

Machinery and Systems

Public Relations

Human Resources (Employee

Affairs Director)

Research and Development

Quality

Internal Auditing

Corporate Compliance

48

KEY DATA OF THE SHARE


WKN / ISIN 556 520 / DE0005565204

Bloomberg / Reuters Due / dueg

Class of shares Common bearer shares

Index Category e.g. MDAX (Performance); CDAX (Performance); FAZ Index, Stoxx 600

Trading centers / stock exchange

Stuttgart (regulated market)

Frankfurt (regulated market)

Several open markets

Capital stock € 88.6 million

Number of shares 34,601,040

Market capitalization as of 2018/05/08 € 2,997 m

25.3%

3.5%

71.2%1

Heinz u. Heide Dürr Stiftung

49

SHAREHOLDER STRUCTURE


Free float at 71.2%1

Institutional and private investors

- Thereof AXA S.A. 5.1%2)

- Thereof MainFirst: 4.7%2)

- Thereof The Goldman Sachs Group: 4.7%2)

- Thereof Deutsche Bank AG: 4.7%2)

- Thereof Morgan Stanley: 4.0%2)

- Thereof Alecta Pensionsförsäkring: 3.2%2)

- Thereof members of the

Dürr Board of Management: 0.2%2)

- Thereof members of the

Dürr Supervisory Board: 0.1%2)

Heinz Dürr GmbH

1 Free float calculated according to Deutsche Börse AG 2 According to the relevant laws

50

SHARE PRICE DEVELOPMENT


Remarkable long-term

outperformance compared to

DAX & MDAX

Dürr highly benefited from China

boom due to its strong emerging

markets presence

HOMAG takeover in 2014 took

some time to be understood, but

then levered the Dürr share.

In 2015, China fears impacted the

stock markets and Dürr, too.

Value driver: digitization and

HOMAG boosted outperformance

of Dürr share

2018: Focus 2.0 program should

stop negative margin trend at

Paint and Final Assembly

business 0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

2010 2011 2012 2013 2014 2015 2016 2017 2018

Dürrindexiert

DAXindexiert

MDAXindexiert

51

DIVIDEND POLICY


Dividend policy: 30-40% payout ratio

0.00 €0.15 €

0.60 €

1.13 €

1.45 €

1.65 €

1.85 €

2.10 €2.20 €

2009 2010 2011 2012 2013 2014 2015 2016 2017

in € 2009 2010 2011 2012 2013 2014 2015 2016 2017

Earnings

per

share

-0.78 0.19 1.79 3.10 4.05 4.33 4.67 5.26 5.56

Dividend

per

share

0.00 0.15 0.60 1.13 1.45 1.65 1.85 2.10 2.20

Total

payout0.0m 5.2m 20.8m 38.9m 50.2m 57.1m 64.0m 72.7m 76.1m

Payout

ratio- 32% 32% 35% 38% 38% 38% 39% 38%

2017 dividend at € 2.20 per share

52

ANALYSTS’ VIEW ON DÜRR


22 equity research analysts cover Dürr

ø target price: 109.19 €

Target price range between 75 and 130 €

82% recommend to buy or hold the Dürr share

41%50% 9%

Buy Hold Sell

53

FIXED INCOME

Key data Bond / Bonded loan („Schuldscheindarlehen”)


Bond Bonded loan („Schuldscheindarlehen”)

WKN / ISIN A1YC44 / XS1048589458 -

Issued volume EUR 300 million EUR 300 million

Coupon 2.875% 1.6% in average

Maturity /

RepaymentApril 3, 20211 5, 7, 10 years (issued March 2016)

Nominal value EUR 1,000.00 -

Stock exchange /

listingregulated market Luxembourg Stock Exchange, unofficial trading

German stock exchanges-

Rating Since 2010 it does exist neither a company rating nor a bond rating -

Syndicated loan held by Dürr AG: € 465 million

Bilateral credit facilities of a smaller volume and liabilities from finance leases

54

EQUITY STORY

Good reasons to be invested in Dürr


World market leadership: In ~95% of its product portfolio with market shares between 30 and 60% high entry barriers

Service potential: Increased installed base is starting point for a growing and profitable service business.

Market positioning: About 40% of the business volume from emerging markets. Best positioned in competition.

Growth: Organic growth expected at ~3% p.a. Further acquisitions should contribute to the expansion.

Technology leader: Dürr enables customers to reduce costs per units and thus to increase production efficiency.

Industry 4.0 / smart factory: Leading due to intelligent solutions (e.g. ADAMOS, tapio & LOXEO)

Value creation: ROCE exceeds cost of capital significantly – ROCE 2017 at 39.4%, cost of capital 2017 at 7.9%.

Continuity: Continuous improvement of earnings since 2010; 7th consecutive record year with steady increase of dividend.

55

VALUE MANAGEMENT


The most important performance indicators at Dürr

Incoming orders

Sales

EBIT

ROCE (EBIT/Capital employed).

Cash flow from operating activities

Free cash flow

Economic Value Added (EVA)

Also non-financial performance indicators tracked, e.g.

Employee and customer satisfaction

Training/education

Ecology/sustainability

R&D/innovation

Key figuresFY

2012

FY

2013

FY

2014

FY

2015

FY

2016

FY

2017

Incoming

orders2,596.8 2,387.1 2,793.0 3,467.5 3,701.7 3,888.7

Sales

revenues2,399.8 2,406.9 2,574.9 3,767.1 3,573.5 3,713.2

EBIT 176.9 203.0 220.9 267.8 271.4 287.0

Operating

cash flow117.6 329.1 291.3 173.0 227.4 119.8

Free cash

flow65.9 261.9 221.1 62.8 129.9 14.3

ROCE 47.4 76.2 38.7 45.3 41.1 39.4

EVA 99.3 124.3 121.6 146.2 142.5 143.9

INVESTOR RELATIONS PRESENTATION

Bietigheim-Bissingen, May 2018

www.durr.com

Corporate Communications & Investor Relations Dürr AG

Documents

INVESTOR RELATIONS PRESENTATION - DURR · Balancing. Dürr 46%, CEMB 16%, Kokusai 8% . ... end of line End of line assembly ... CCI, Investor Relations Presentation, Bietigheim-Bissingen,