conference call results jan.– sept. / q3 2012 · conference call results jan.– sept. / q3 2012...

www.durr.comwww.durr.com

CONFERENCE CALLRESULTS JAN.– SEPT. / Q3 2012

DÜRR AKTIENGESELLSCHAFT

Bietigheim-Bissingen, November 6, 2012

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 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.

2© Dürr AG, CCI, CC Q3, November 6, 2012

BOOK TO BILL RATIO AT 1.1

Incoming orders development as expected, decrease in Application Technology and Cleaning Filtration only

Project pipeline continues to be strong despite weaker macro-economic situation

Continued sales increase in Q3

Order backlog secures utilization well until first half of 2014


€ m 9 months

20119 months

2012∆ Q3 2011 Q3 2012 ∆

Incoming orders 2,066.5 1,954.3 -5.4% 866.0 550.0 -36.5%

Sales revenues 1,307.3 1,757.5 34.4% 523.8 594.2 13.4%

Orders on hand (09/30) 2,122.2 2,332.1 9.9% 2,122.2 2,332.1 9.9%

Q3 ORDER INTAKE LEVEL ACCORDING TO PLAN

4

162 179 169 130

275 244 294

466

336 325379

28978 69 83

65

97 127

155

182

116 166137

10480 101 100

152

144 165

159

189

149160

175

141

1813 22 17

26 21

35

29

1728

35

16

0

100

200

300

400

500

600

700

800

900

Q 42009

Q 12010

Q 22010

Q 32010

Q 42010

Q 12011

Q 22011

Q 32011

Q 42011

Q 12012

Q 22012

Q 32012

CleanTechnologySystems

Measuring andProcessSystems

ApplicationTechnology

Paint andAssemblySystems

339362 375

364

557

643

541

866

618679

725

550

© Dürr AG, CCI, CC Q3, November 6, 2012

€ m

INCOMING ORDERS: 9 MONTHS 2012 VS. 9 MONTHS 2011

€ m

Strong European businessChina catches up in Q3


-5%

-33%

-5%

+44%

+32%

-47%

2,066.5

781.9

437.8

232.8

448.0

165.9

1,954.3

522.4414.8

336.0

593.5

87.6

0

500

1,000

1,500

2,000

2,500

Total China America Germany Europe w/oGermany

Asia (w/o China),Africa, Australia

9 months 2011

9 months 2012

ORDER INTAKE: HEALTHY REGIONAL SPLITRolling 12 months comparison

Emerging markets share above 50%

China still most important single market

59%(57%)

6

23.3%

(38.2%)

7.3%

(7.8%)

24.3%

(20.6%)

28.6%

(21.6%)

16.5%

(11.8%)32.0%

(27.3%)

7.4%

(9.2%)

25.3%

(20.7%)

23.1%

(25.8%)

12.2%

(17.0%)

Mature

markets Emerging

markets *

47%

(35%) 53%

(65%)

Germany

Rest of Europe incl. Eastern Europe

North and South America

Asia (ex China), Africa, Australia

China

* Asia (ex Japan), Mexico, Brazil, Eastern Europe

Incoming orders rolling 12 months

2012 (2011)

Incoming orders rolling 12 months

2012 (2011)

Sales revenuesrolling 12 months

2012 (2011)


NET INCOME DOUBLED DUE TO STRONG SALES AND MODERATE SG&A INCREASE

Q3 gross margin increases to 19.0% due to high utilization and better order mix (Q1: 16.4%/Q2: 17.6%)

Moderate increase of SG&A costs (+20%) well below sales increase

Q3 EBIT margin at 7.8%

Financial result weaker at € -23.2 m (€ -15.1 m) due to inclusion of Campus refinancing andone time costs (€ 5.3 m)

7

€ m9 months

20119 months

2012∆ Q3 2011 Q3 2012 ∆

Gross profit on sales 228.8 311.0 35.9% 88.4 112.9 27.7%

EBITDA 78.4 138.6 76.8% 35.0 53.5 52.9%

EBIT 63.5 118.9 87.2% 29.6 46.5 57.1%

Net income 34.6 71.3 106.1% 18.6 27.3 46.8%


TEMPORARY INCREASE IN NWCCash flow/free cash flow

Strong cash flow improvement in Q3, NWC reduction expected in Q4

8

€ m9 months

20119 months

2012Q3

2011Q3

2012

EBT 48.4 95.7 24.7 36.2

Depreciation and amortization of non-current assets 14.9 19.8 5.4 6.9

Interest result 15.5 23.5 5.0 10.4

Income taxes paid -7.3 -13.2 -3.0 -4.4

∆ Provisions 2.3 -10.4 2.7 4.8

∆ Net working capital -48.2 -147.6 -15.0 -27.6

Other 2.6 13.8 33.5 20.0

Cash flow from operating activities 28.2 -18.4 53.3 46.3

Interest paid (net) -20.5 -19.7 -20.3 -17.6

Capital expenditures -12.4 -21.1 -4.4 -6.0

Free cash flow -4.7 -59.2 28.6 22.7


DWC expected to be back in target range (20-25 days) at year end 2012

NWC: INCREASE ALONG WITH BUSINESS EXPANSION

9

09/30/2011 12/31/2011 09/30/2012

NWC in € m 77.3 32.6 177.7

DWC (Days Working Capital) 16.0 6.1 27.3

DSO (Days Sales Outstanding) 126.8 117.2 115.7


WIP AND PROGRESS BILLINGS

WIP approaches normalized range of +/- € 50 m

10

€ m 09/30/2011 12/31/2011 09/30/2012

Assets

Work in process from contracts (WIP) 922.2 936.8 1,479.5

Progress billings -606.2 -639.2 -1,092.0

WIP in excess of billings 316.0 297.6 387.5

Liabilities

Work in process from contracts (WIP) -937.2 -1.221.9 -1,261.9

Progress billings 1,371.5 1,650.1 1,713.2

Billings in excess of WIP 434.3 428.2 451.3

Machinery business

WIP -20.7 -23.1 -34.0

Progress billings 18.4 18.6 33.0

Billings in excess of WIP -2.3 -4.5 -1.0

1

2

4


3

Progress billings were € 63m higher than future receivables1) on September 30, 2012

This will lead to a future cash outflow of € 63mHowever, cash flow should benefit from higher earnings/revenues

1) These future receivables are not included in trade receivables

WIP AND PROGRESS BILLINGS

11

€ m 09/30/2011 12/31/2011 09/30/2012

Balance: total WIP less total progress billings

- - -116.0 -126.1 -62.8

Prepayments (liabilities)

+ 452.7 446.8 484.32 3

421


Equity ratio expected to increase during the next quarters

Positive net financial status expected at FY end

1) annualized

STRONG ROCE DESPITE HIGH NWC LEVEL

12

€ m 09/30/2011 12/31/2011 09/30/2012

Equity in € m 341.0 364.3 411.3

Equity ratio in % 22.7 21.9 23.5

Net financial status in € m 0.9 51.8 -25.8

Cash in € m 235.0 298.6 249.7

Gearing in % -0.3 -16.6 5.9

ROCE1) in % 21.3 28.4 32.1


ROCE CLEARLY ABOVE COST OF CAPITAL

Dürr’s business model favors low capital employed

Strong focus on NWC management

Only slight CE increase since 2006 despite strong business expansion

13

2006 2007 2008 2009 2010 20119 months

2012

EBIT in € m 33.1 55.7 72.7 5.7 36.6 106.5 118.9

Capital employed in € m 420.1 378.8 432.1 356.3 356.7 374.8 494.1

NWC in € m 154.7 128.9 151.8 57.4 27.3 32.6 177.7

DWC 40.9 31.4 34.1 19.2 7.8 6.1 27.3

ROCE in % 7.9 14.7 16.8 1.6 10.3 28.4 32.11)


1) annualized

0

1

2

3

4

5

6

05

101520253035

2006 2007 2008 2009 2010 2011 2012e

ROCE in % CE turnover

PAINT AND ASSEMBLY SYSTEMS: INCOMING ORDERS ON 2011 RECORD LEVEL

Book to bill ratio at 1.2

EBIT margin at record high in Q3 2012 (7.0%)

14

€ m9 months

20119 months

2012∆

Incoming orders 1,004.3 992.8 -1.1%

Sales revenues 580.9 810.5 39.5%

EBIT 26.1 49.1 88.1%


APPLICATION TECHNOLOGY: STRONG EBIT DEVELOPMENT

Q3 incoming orders should have bottomed out, strong pipeline in brownfield projects

Good earnings improvement due to high utilization and improved margin realization, EBIT margin reached 9.2% in Q3

15

€ m 9 months

20119 months

2012∆

Incoming orders 464.7 406.8 -12.5%


EBIT 14.9 37.2 149.7%


MEASURING AND PROCESS SYSTEMS: CONTINUED EARNINGS MOMENTUM

Normalized order intake level in Q3, selective order intake in Cleaning and Filtration

Incoming orders at Balancing and Assembly Products +15%

Earnings improvement in both business units; EBIT margin reaches 11.1% in Q3

16

€ m 9 months

20119 months

2012∆



EBIT 22.2 40.4 82.0%


CLEAN TECHNOLOGY SYSTEMS: BOOK TO BILL RATIO AT 1.2

Order intake temporarily weaker in Q3; several VAM-RTO in the pipeline, higher order intake expected in Q4

EBIT margin at 5.5% in Q3 despite expansion costs in energy efficiency business

17

€ m9 months

20119 months

2012∆



EBIT 3.0 1.9 -36.7%


EXPANDING SERVICE BUSINESS

18

2008 2009 2010 20119 months

20119 months

2012

Sales revenues in € m 395.9 263.3 362.0 445.4 314.0 362.6

Sales revenue in % of group sales 24.7 24.4 28.7 23.2 24.0 20.6


0

1000

2000

3000

4000

5000

6000

7000

8000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

Example Application Technology: Number of paint robots in the installed base

LARGE SERVICE POTENTIAL IN THE EMERGING MARKETS


Service in % of total sales by country

0

5

10

15

20

25

China India Russia Brazil Mexico Group

MARKET: STRONG PASSENGER CAR SALESSeptember 2012/2011

Source: VDA (German carmakers´ association)

20

Change year-over-year in %

-8

-2

0

6

9

10

14

15

42

-10 0 10 20 30 40 50 60

Western Europe

Germany

new EU countries

Brazil

China

India

Russia

USA

Japan


CONTINUED STRONG EMERGING MARKETS GROWTH EXPECTED

21

Emerging markets contribute 90% to worldwide automobile production growth 2011-2016

CAGR in %

17.3 19.5 20.2 21.4 22.7 23.6

19.9 19.2 19.7 20.9 22.1 23.2

19.6 21.6 22.5 23.9 24.6 25.415.3

16.5 18.921.1

23.124.7

2.52.4

2.62.7

2.82.9

0

10

20

30

40

50

60

70

80

90

100

110

2011 2012 2013 2014 2015 2016

America Europe Asia (without China) China otherSource: PwC

Last update: October 2012

m units

6.4

3.0

10.0

5.3

3.1

74.679.2

83.990.0

95.399.8


2009 2010 2011 2012e

EBIT margin (EBIT in € m)

(5.7)

(36.6)

2.9%

0.5%

5.5%

6.5 - 7%

1,2171,460

1,7821,464

1,185

1,642

2,685 2,500

2005 2006 2007 2008 2009 2010 2011 2012e

1,0781,261

1,922

>2,300

2009 2010 2011 2012e

(106.5)

OUTLOOK: ON THE WAY TO 7% EBIT MARGINOngoing growth and profit improvement expected

22

Incoming orders in € mSales in € m


SUMMARY


9 months within expectations, EBIT margin reached 7.8% in Q3

Positive long term market outlook despite current macro-economicslowdown

Healthy project pipeline, no signs for a deterioration of business

Positive 2012 outlook supported by order backlog, incoming orders and project pipeline. Margin goal of 6.5 - 7% within reach and conservative

FINANCIAL CALENDAR

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

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

11/13/12 - 11/14/12 UBS Conference, London

12/04/12 - 12/07/12 Berenberg Conference, Pennyhill

01/14/13 - 01/16/13 Commerzbank German Investment Seminar, New York

01/22/13 German Corporate Conference by Cheuvreux, Frankfurt


www.durr.comwww.durr.com

CONFERENCE CALLRESULTS JAN.– SEPT. / Q3 2012

DÜRR AKTIENGESELLSCHAFT

Bietigheim-Bissingen, November 6, 2012

Ralf W. Dieter, CEORalph Heuwing, CFO

conference call results jan.– sept. / q3 2012 · conference call results jan.– sept. / q3 2012...

Documents