conference call results january – june 2013

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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


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


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


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


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


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


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


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


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


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


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


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


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


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%


OUTLOOK: STRONG CASH FLOW/FREE CASH FLOW GENERATION EXPECTED

Free cash flow in € mCash flow in € m


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


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]


www.durr.comwww.durr.com

CONFERENCE CALLRESULTS JANUARY – JUNE 2013

DÜRR AKTIENGESELLSCHAFT

Bietigheim-Bissingen, August 1, 2013

Ralf W. Dieter, CEORalph Heuwing, CFO

conference call results january – june 2013

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