Durr Ag · XETR:DUE
Durr — H1 2007 Earnings Presentation
20 slides from Durr's earnings presentation, Aug 9, 2007
Slide 1: Welcome to the conference call: Results January - June 2007
Welcome to the conference call Dürr AG Results January - June 2007 Dürr Group Stuttgart, August 9, 2007
Slide 2: Disclaimer
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, product development, and the effects of continous improvement processes. Such statement
Slide 3: 6 months 2007 at a glance: Good order situation
6 months 2007 at a glance: Good order situation H1 2007 H1 2006 ∆ in € m Incoming orders 912.4 845.3 +7.9% Sales revenues 650.3 626.3 +3.8% Orders on hand (June 30) 1,070.6 929.9 +15.1% § Book to bill with 1.4 (1.3) favourable § Orders on hand increased by 33% compared to year end 2006 § Project pip
Slide 4: Incoming orders and sales H1 2007 (2006): Well balanced structure
Incoming orders and sales H1 2007 (2006): Well balanced structure Incoming orders Sales 20.2% 18.1% 22.4% 19.8% (32.0%) (11.3%) (18.3%) (21.9%) 22.0% 19.0% (19.0%) 39.7% (24.5%) 38.8% (37.7%) (35.3%) Germany Europe excluding Germany North & South America Asia, Africa, Australia § Declining order int
Slide 5: Operating result up 17.5% in H1 2007
Operating result up 17.5% in H1 2007 H1 2007 H1 2006 ∆ in € m Gross profit on sales 104.7 106.5 -1.7% EBITDA before one-time effects 20.4 20.1 +1.5% Operating result (EBIT before one-time effects) 11.4 9.7 +17.5% Net income 0.0 -3.3 - § Gross margin reduced to 16.1% (17.0%). Higher efficiency and ef
Slide 6: Problems solved in India
Problems solved in India FY 2004 FY 2005 FY 2006 FY 2007e in € m Incoming orders 20.9 15.7 110.5 138.3 Sales 22.3 12.5 60.6 90.7 § Organizational structure and capacity was not sufficient for the strong growth § Delays and quality problems at suppliers Measures § Enhancement of local management by G
Slide 7: Paint and Assembly Systems: Strong demand
Paint and Assembly Systems: Strong demand H1 2007 H1 2006 in € m Incoming orders 750.7 680.2 Sales 512.6 498.2 EBIT 6.4 10.9 § Incoming orders: High growth at Factory Assembly Systems and Environmental and Energy Systems § High sales & earnings growth expected in Q4 2007 Dürr AG © CCI, Conference Ca
Slide 8: Measuring and Process Systems: Turnaround achieved
Measuring and Process Systems: Turnaround achieved H1 2007 H1 2006 in € m Incoming orders 161.7 165.1 Sales 137.6 128.1 EBIT 4.5 -4.4 § Balancing and Diagnostic Systems: Positive development continued. Earnings above budget and previous year § Cleaning and Filtration Systems: Situation clearly impro
Slide 9: Cash flow from operating activities significantly improved
Cash flow from operating activities significantly improved H1 2007 H1 2006 in € m EBIT 11.5 5.6 Amortization and depreciation of non-current assets 9.0 10.4 Income taxes paid -3.7 -5.3 Changes in provisions -13.9 -17.5 Changes in net working capital 3.9 -16.8 Other -30.1 -28.2 Total -23.3 -51.8 § €
Slide 10: Net financial debt: Higher financing needs during the year
Net financial debt: Higher financing needs during the year in € m FY 2006 H1 2007 0 -20 -40 -60 -80 -100 -96.5 -120 -140 -130.4 -145.5 -160 -152.8 -180 Period end Period average Dürr AG © CCI, Conference Call H1 2007, August 9, 2007 - 10 -
Slide 11: Selected key figures
Selected key figures H1 2007 H1 2006 in € m Capex 12.3 6.0 Equity (June 30) 245.2 240.4 Net working capital (June 30) 155.8 182.6 Prepayments (June 30) 133.2 107.5 § Capex: planned expenditures for IT/SAP § NWC reduced despite growth in demand and higher sales Dürr AG © CCI, Conference Call H1 2007,
Slide 12: Number of employees up in emerging markets due to healthy outlook
Number of employees up in emerging markets due to healthy outlook 6.000 +1.4% 06/30/06 06/30/07 5,836 5,755 5.000 4.000 -0.4% 3.000 3,048 3,037 2.000 -4.3% -3.0% 1.000 1,204 1,152 +30.7% 943 915 732 560 0 World Worldw ide Germany Germ any Europe excl. Europe excl. Germ any North & South North & Sout
Slide 13: Outlook: Growth triggers customers' capex
Outlook: Growth triggers customers’ capex 1) Development of light vehicle production in m units th 3.1% p. a . 90 aver a g e g row 77.3 79.3 80 73.0 75.4 70.3 66.2 68.0 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 1)Including light trucks & SUVs Source: Own estimates, CSM, J.D. Power, P
Slide 14: Outlook: Strong growth in Asia & East. Europe
Outlook: Strong growth in Asia & East. Europe Regional development of light vehicle production1) 2006 - 2012 in m units 35 +6.8 30 2006 25 20 2012 +1.0 +0.6 15 10 +3.0 5 +0.7 +1.0 0 North Mercosur Western Eastern Asia Others (incl. America Europe Europe Iran) 1)Including light trucks & SUVs Source:
Slide 15: Outlook: Full project pipeline and growing market share
Outlook: Full project pipeline and growing market share Logarithmic illustration in € bn 10 10 5 Projects in the market PAS order intake 11 annualized Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007 Source: Own calculations Dürr AG © CCI, Conference Call H1 2007, August 9, 2007 - 15 -
Slide 16: Outlook
Outlook § 2007: Sales growth between 5 and 10% § 2007: Strong earnings improvement driven by - improved processes - higher margin orders in H2 compared to H1 - turnaround at loss-making operations - growth in service business § 2008: Operating profit margin (EBIT before one-offs) goal of minimum 5%
Slide 17: Summary: On track
Summary: On track § H1 2007: Strong incoming orders § Turnaround candidates with encouraging improvements; outlook remains unchanged despite the situation in India § Requests for quotation remain strong. The automobile market should see healthy growth in the next years § 2007 - strong growth in earn
Slide 18: Financial calendar
Financial calendar 08/30/2007 Mechanical Engineering Conference of Commerzbank, Frankfurt/Main 09/19/2007 - 09/21/2007 Mechanical Engineering and Steel Industry Conference of BHF-Bank, Frankfurt/Main 11/12/2007 - 11/14/2007 German Equity Forum, Frankfurt/Main 11/15/2007 Interim report first nine mon
Slide 19: Dürr AG © CCI, Conference Call H1 2007, August 9, 2007
Dürr AG © CCI, Conference Call H1 2007, August 9, 2007 - 19 -
Slide 20: Shareholder structure August 9, 2007
Shareholder structure August 9, 2007 Dürr AG © CCI, Conference Call H1 2007, August 9, 2007 - 20 -