View
1.218
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
www.durr.comwww.durr.com
PRESENTATION
DÜRR INVESTOR RELATIONS
March 2014
WELCOME
DISCLAIMER
© Dürr AG, CCI, Investor Relations, March 2014 2
This investor 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 could 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.
AGENDA
© Dürr AG, CCI, Investor Relations, March 2014 3
1. Dürr: global leader with strong competitive position
2. Markets
3. Dürr Strategy 2017
4. Financial overview, outlook and summary
DÜRR: GLOBAL LEADER WITH STRONG COMPETITIVE POSITION
© Dürr AG, CCI, Investor Relations, March 2014 4
Customers Fast facts
World market leader in 90% of Dürr‘s business portfolio with market shares between 30 - 60%
80% of revenue from automotive; all OEMs worldwide as customers
Large installed base supporting service growth
Strong emerging markets presence with 55% share of global incoming orders
High entry barriers with limited competitive set
Business drivers: automotive market growth (green field), growing replacement potential (brown field), service (installed base)
BUSINESSES AT THE DÜRR GROUP
© Dürr AG, CCI, Investor Relations, March 2014 5
Structure of the Dürr-Group with 4 global divisions
DÜRR-Group
Paint and Assembly Systems
Application Technology
Measuring and Process Systems
Clean Technology Systems
Paint shops and final assembly systems
Paint applicationtechnology
Balancingtechnology
Exhaust air purificationsystems
Aircraft manufacturing engineering
Sealing and glueingtechnology
Cleaning systems
Energy efficiency technology
OVERVIEW DIVISIONS
© Dürr AG, CCI, Investor Relations, March 2014 6
Profit drivers vary by division
Paint and Assembly Systems
Application Technology
Measuring and Process Systems
Clean Technology Systems
2009 … 2013 2009 … 2013 2009 … 2013 2009 … 2013
Sales revenues (€ m) 494.1 1,176.9 203.9 540.0 324.9 583.6 54.6 106.3
EBIT (€ m) -3.0 98.3 3.0 59.6 10.7 46.3 2.2 6.1
EBIT margin (%) -0.6 8.4 1.4 11.0 3.2 7.9 4.0 5.7
ROCE (%) >100%1 >100%1 2.8 43.2 4.4 16.2 64.3 17.1
Value drivers
» automotive market growth
» modernization
» service
» automotive market growth
» automation
» service
» International-ization
» automation
» synergies
» new applications
» exploring huge market potential
¹ negative CE
Emerging markets share 54%
China most important single market; Americas strong, too
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
7
Incoming orders 2013 (2012)
Incoming orders2013 (2012)
Sales revenues2013 (2012)
ORDER INTAKE: SHIFT TO THE AMERICAS
© Dürr AG, CCI, Investor Relations, March 2014
Mature markets Emerging
markets *
46% (45%) 54%
(55%)
27.3% (32.9%)
4.8% (5.0%)
30.7% (18.6%)
23.7% (28.6%)
13.5% (14.9%)
31.7% (30.5%)
7.0% (7.6%)
18.3% (25.3%)
27.2% (23.1%)
15.8% (13.5%)
AGENDA
© Dürr AG, CCI, Investor Relations, March 2014 8
1. Dürr: global leader with strong competitive position
2. Markets
3. Dürr Strategy 2017
4. Financial overview, outlook and summary
MARKETS
© Dürr AG, CCI, Investor Relations, March 2014 9
2011: Emerging markets overtook developed markets
Worldwide automotive industry with steady growth (light vehicle production in m units)
+ 2% CAGR
+ 5% CAGR
45 43 44 44 44 44 44 4440
3036 36 37 37 39 41 42 43 43
11 11 12 14 1619
2225 26 27
3538
4246 48
5257 59 61
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e 2018e
developed markets emerging markets
* estimatedSource: PwC Autofacts
Last update: January 2014
CONTINUED STRONG EMERGING MARKETS GROWTH EXPECTED
© Dürr AG, CCI, Investor Relations, March 2014 10
BRIC, Thailand, Malaysia & Indonesia with expected LV production growth > 7%
75% emerging markets’ contribution to growth between 2014 and 2018
20.8 21.7 22.7 23.5 24.5 24.7
19.5 20.4 21.7 22.9 23.6 23.9
22.0 22.8 23.5 24.5 25.2 25.618.7 20.8 23.4 25.5 26.8 27.61.5
1.72.0 2.1
2.1 2.3
0
10
20
30
40
50
60
70
80
90
100
110
2013 2014 2015 2016 2017 2018
America Europe Asia (without China) China Other
CAGR in %
Source: own estimates, PwCLast update: January 2014
in m units
3
9
8
3
4
82.5 87.493.3 98.5 102.2
104.1
AGENDA
© Dürr AG, CCI, Investor Relations, March 2014 11
1. Dürr: global leader with strong competitive position
2. Markets
3. Dürr Strategy 2017
4. Financial overview, outlook and summary
DÜRR STRATEGY 2017
12
Service
Globalization
Efficiency
Innovation
LEADING INPRODUCTION EFFICIENCY
© Dürr AG, CCI, Investor Relations, March 2014
1. INNOVATIONLEADING IN PRODUCTION EFFICIENCY
© Dürr AG, CCI, Investor Relations, March 2014 13
Cost per unit optimization in a paint shop
Cost per unit in aDürr Eco+Paintshop
= € 250-370
35%cost reduction
goal 2015
Cost per unit in aDürr Eco+Paintshop
= € 300-450
20%cost reduction
2012
Cost per unit in a current paintshop
= € 380-570
Material41%
Invest20%
Energy8%
Personnel28%Service
3%
1. INNOVATION EXAMPLES
© Dürr AG, CCI, Investor Relations, March 2014 14
EcoReBooth - paint booth concept
EcoDryScrubber - dry overspray separation
EcoPositioner – aircraft positioning system
EcoRPL033 - painting robot
Balancing Technology e.g. for turbochargers
EcoCSteam - cleaning with steam
© Dürr AG, CCI, Investor Relations, March 2014 15
Energy efficiency: efficient use of energy and waste heat
Heat exchangers
� up to 600 °C
Heat transferNatural refrigerant CO 2 NH3
� 8-40 °C heat source� up to 90 °C heat sink
Heat pump
Strategic goal: broad product range across all rele vant technologies
ORC
� 100-500 °C
Heat-to-power
Compact Power System
� 900-1,000 °C
Rollout / Commercialization of energy efficient products
Globalization / Emerging Markets
Insourcing / Increase of value added
Innovations
1. INNOVATION
2. GLOBALIZATIONFOCUS ON EMERGING MARKETS
© Dürr AG, CCI, Investor Relations, March 2014 16
China 2005 … 2013 CAGR
in %
Incoming orders (in € m) 146 650 21
Sales revenues (in € m) 83 760 32
Employees (12/31) 271 1,356 22
Average sales growth (2005-2013):Brazil: 30%, Mexico: 11%, India: 29%
Example China: - Doubling of capacities in space to 63,000 m²- Increasing use as manufacturing, purchasing and engineering center
Test Center in Japan, China and US
Expansion in South East Asia
New Dürr site Shanghai/Baoshan
2. GLOBALIZATION EXAMPLES OF CAPACITIES EXPANSIONS
© Dürr AG, CCI, Investor Relations, March 2014 17
Location Highlights
BrazilSão Paulo
Location extension in 2012 by 2,000m² to 10,000m²New organizational structure, all BUs now representedBig increase in workforceExtension APT Training Center
MexicoQuerétaro
New location and extension of the area from 5,000m² to 12,300m²Extended workbench for Dürr USA and Dürr worldwideDetail engineering for Dürr USA
PolandRadom
Expansion of production to 6,700m²Completion November 2013: New production hall, staff buildings and warehouseRented halls and tents will be replaced
2. GLOBALIZATION EXAMPLES OF CAPACITIES EXPANSIONS
© Dürr AG, CCI, Investor Relations, March 2014 18
Location Highlights
South AfricaPort Elizabeth
Move-in in August 2013Expansion of office space from 400m² to 900m²The area for manufacturing and storage has quadrupled and now amounts to 1,000m²
ThailandBangkok New location with currently 9 employees for the care of the
South East Asian market
19
Acquisitions: Making use of Dürr’s global footprint
© Dürr AG, CCI, Investor Relations, March 2014
Agramkow
World market leader in filling technology for household appliance & heat pump industries� Push in emerging market presence� Expansion of addressable markets, in non-automotive and in environmental friendly cooling liquids
Kleinmichel / Rickert
2 acquisitions in glueingtechnology: specialists for glueing in the final assembly process (e. g. windows) and the body shop� Global expansion & growing markets
LTBExhaust air purification specialist Luft- und Thermotechnik Bayreuth (LTB) strengthens Dürr’s position in terms of product offering� Pushing LTB’s business globally
2. GLOBALIZATION
3. SERVICEGROWTH STRATEGY
© Dürr AG, CCI, Investor Relations, March 2014 20
2008 2009 2010 2011 2012 2013
Service revenues (in € m) 395.9 263.3 362.0 445.0 506.9 535.6
In % of group revenues 24.7 24.4 28.7 23.2 21.1 22.3
Actions
Increase service business and capacities in emerging markets (e.g. China, India, Turkey)
Service pricing, dedicated offerings, complaint management system, decentralized ware-housing, delivery speed
Modificationsand upgrades
55%Spare partsand repair
30%
Main-tenance,
assessments, seminars
15%
Service type in % of revenues
© Dürr AG, CCI, Investor Relations, March 2014 21
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
5
10
15
20
25
China India Russia Brazil Mexico Group
Number of sold paint robots (cumulative) Service in % of total sales by country
3. SERVICEGROWTH STRATEGY
© Dürr AG, CCI, Investor Relations, March 2014 22
Customer Excellence@Dürr
Further improvement of customer relationships and p ush of service business
Module “Service Excellence”:Improvement + extension service business
Module “Customer Experience”:Improvement interaction with customers
Worldwide program
“Best in Class” for all contact points with the customer
Strengthen customer orientation, enhance customer loyalty
Develop instruments for regular measurement of customer satisfaction
Consistent service orientation: Sales, proposals, operations, after-sales
Capacity increase in service business
Profitable growth in service business
3. SERVICEGROWTH STRATEGY
© Dürr AG, CCI, Investor Relations, March 2014 23
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
Age of paintshops(based on own calculations)
>20 years 10 - 20 years <10 years
~250 paintshops in the world are older than 20 years
Increasing potential due to ageing plant structure ���� Expanding modernization business
3. SERVICEGROWTH STRATEGY
© Dürr AG, CCI, Investor Relations, March 2014 24
Further globalization of Dürr processes
Global processes with full utilization of SAP/CAX/CRM/Sharepoint
Strengthening of engineering center in India
Expansion of sourcing offices in China, India, Mexico, Brazil
Expansion of manufacturing in China, Mexico for international supply
Rigorous localization of Dürr products in the emergi ng markets
Supplemental product portfolio with low-cost/low-end solutions
Reduction of specifications
Local added value
Global process as basis for profitability
Global processes / localization
4. EFFICIENCY
4. EFFICIENCY
© Dürr AG, CCI, Investor Relations, March 2014 25
Global IT structure: connected worldwide
Enterprise Resource Planning
CAX
Reporting
SharePoint
CRM
Project management software Dürr Projects
Integrated Systems
Ca. € 30 m invested
One database worldwide
Efficient cooperation in all locations
Efficient controlling and timing of capacities
Continuous capex spending necessary
ChangeManagement
Site Management
MeetingManagement
Projects
MilestoneChecklists
InformationManagement
QualityManagement
AGENDA
© Dürr AG, CCI, Investor Relations, March 2014 26
1. Dürr: global leader with strong competitive position
2. Markets
3. Dürr Strategy 2017
4. Financial overview, outlook and summary
STRONG EARNINGS
© Dürr AG, CCI, Investor Relations, March 2014 27
in € m 2011 2012 2013 Q4 2012 Q4 2013
Incoming orders 2,684.9 2,596.8 2,387.1 642.5 589.6
Sales revenues 1,922.0 2,399.8 2,406.9 642.3 660.8
Orders on hand(end of period)
2,142.7 2,316.8 2,150.1 2,316.8 2,150.1
Gross profit on sales 331.4 437.8 487.4 126.8 147.1
Gross margin (%) 17.2 18.2 20.3 19.7 22.3
EBIT 106.5 176.9 203.0 58.0 68.9
EBIT margin (%) 5.5 7.4 8.4 9.0 10.4
Net income 64,3 111.4 140.9 40.1 53.3
CASH FLOW
© Dürr AG, CCI, Investor Relations, March 2014 28
in € m 2011 2012 2013
EBT 85.8 147.7 184.6
Depreciation and amortization 20.6 28.5 27.4
Interest result 21.3 29.6 19.0
Income taxes paid -14.3 -21.3 -35.9
Changes
Provisions 0.6 -17.2 12.8
Net working capital -2.3 -69.1 122.6
Other 16.2 19.4 -1.4
Cash flow from operating activities 127.9 117.6 329.1
Interest paid (net) -16.5 -20.3 -16.2
Capital expenditures -19.6 -31.4 -51.0
Free cash flow 91.8 65.9 261.9
Strong cash generation
SOLID FINANCIAL STRUCTURE
© Dürr AG, CCI, Investor Relations, March 2014 29
Cash deposits and financial assets: € 548 m, net financial status increased 7 years in a row
Ongoing strong improvement of equity ratio to be expected in the next years
ROCE reached impressive 66% in 2013, well above the cost of capital
12/31/2010 12/31/2011 12/31/2012 12/31/2013
Equity in € m 319.4 364.3 432.1 511.4
Equity ratio in % 26.3 21.9 23.9 25.7
Net financial status in € m 23.6 51.8 96.7 280.5
Net working capital in € m 27.3 32.6 98.6 -33.1
DWC (days working capital) 7.8 6.1 14.8 -4.9
ROCE in % 10.3 28.4 43.9 66.2
ROCE AT RECORD LEVEL
Dürr business model favors low capital employed
Strong focus on NWC management
CE has decreased since 2006 although business volume has almost doubled 0
2
4
6
8
10
010203040506070
2006 2007 2008 2009 2010 2011 2012 2013
ROCE in % CE turnover
30© Dürr AG, CCI, Investor Relations, March 2014
2006 2007 2008 2009 2010 2011 2012 2013
EBIT in € m 33.1 55.7 72.7 5.7 36.6 106.5 176.9 203.0
Capital employed in € m 420.1 378.8 432.1 356.3 356.7 374.8 402.6 306.4
NWC in € m 154.7 128.9 151.8 57.4 27.3 32.6 98.6 -33.1
DWC 40.9 31.4 34.1 19.2 7.8 6.1 14.8 -4.9
ROCE in % 7.9 14.7 16.8 1.6 10.3 28.4 43.9 66.2
0
5
10
15
20
-500
-250
0
250
500
750
1,000
1,250
1,500
1,750
2,000
2,250
2,500
2,750
2009 2010 2011 2012 2013 2014e
Sales
Incomingorders
Gross margin(in %)EBIT margin(in %)
OUTLOOK
© Dürr AG, CCI, Investor Relations, March 2014 31
EBIT margin of 8.5% in focus
in %in € m
8.5
8.0
2,400-2,500
2,300-2,500
Shareholder structure (as of February 2014) *
25.1% Heinz Dürr GmbH, Berlin
3.5%Heinz und Heide Dürr Stiftung, Berlin
71.4%Institutional and private investors
25.1%
3.5%71.4%
SHAREHOLDER STRUCTURE / DIVIDEND POLICY
© Dürr AG, CCI, Investor Relations, March 2014 32
* figures rounded
(thereof 0.7% share of Dürr management)
Free float at 71.4%
Dividend policy: 30-40% payout ratio
SUMMARY
© Dürr AG, CCI, Investor Relations, March 2014 33
Ongoing demand, full order pipeline, a lot of new projects are coming to the market (e.g. China, Brazil, USA)
Positioning for further growth: focus on emerging markets, product innovation and new business segments (environmental & energy business)
Service and modernization business are becoming more important, new project “Customer Excellence@Dürr” started
Cost containment, global processes, localization
2014: moderate positive development in sales and earnings
Solid financial structure, fully funded until 9/2015
Strong market conditions, positioning for further growth
FINANCIAL CALENDAR
© Dürr AG, CCI, Investor Relations, March 2014 34
04/30/2014 Annual General Meeting, Bietigheim-Bissingen05/06/2014 Interim report for the first quarter of 201405/09/2014 Investors' day, Bietigheim-Bissingen07/31/2014 Interim financial report for the first half of 201411/06/2014 Interim report for the first nine months of 2014
Contact Dürr AktiengesellschaftGünter DielmannCorporate Communications & Investor RelationsCarl-Benz-Str. 3474321 Bietigheim-BissingenGermany
Phone: +49 7142 78-1785E-mail: [email protected]
© Dürr AG, CCI, Investor Relations, March 2014 35
Appendix
BUSINESS UNITS *
© Dürr AG, CCI, Investor Relations, March 2014 36
Dürr 50%, Eisenmann 10-15%, Taikisha/Geico 20%local competitors: Scivic, Giffin, Gallagher Kaiser, Trinity (Toyota)
Paint and Final Assembly Systems
Dürr >50%, ABB 15-20%, Fanuc 15-20%, Yaskawa <10%Application Technology
Airbus Varel, Claas/Brötje, Hyde, MTorres, Comau Pico, Thyssen KruppAircraft and
Technology Systems
Balancing Dürr 40%, Kokusai 15%, CEMB 10%Filling Dürr 25%, Cinetic 22%, Sihi 15%Testing Dürr 30%, BEP 20%, Fori 10%, Siemens 5%
Balancing and Assembly Products
Dürr 30%, Harry Major, Tecnofirma, Roll, Pero, Amsonic, HöckhCleaning and Filtration
Systems
Air purification Dürr 40-50%**, John Zink/KEU 20%, CTP 10%Clean Technology
Systems
* own estimates, average of last 3 years** market share relating to business with exhaust-gas purification systems for automotive paint shops
SALES DEVELOPMENT PASSENGER CARS JANUARY-DECEMBER 2013/12
© Dürr AG, CCI, Investor Relations, March 2014 37
Change year-over-year in %
-8
-6
-4
-2
-2
0
0
8
23
-10 -5 0 5 10 15 20 25
India
Russia
Germany
Western Europe
Brazil
Japan
new EU countries
USA
China