Durr Ag · XETR:DUE
Durr — Non-Deal Roadshow (April 2011)
36 slides from Durr's roadshow presentation, Apr 19, 2011
Slide 1: Roadshow Benelux
Roadshow Benelux Dürr Aktiengesellschaft Günter Dielmann, IR Antwerp, Amsterdam, Rijswijk, April 19, 2011
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Agenda
Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Markets 4. Financial overview, outlook and summary © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 -3-
Slide 4: Dürr: Global leader with strong competitive position
Dürr: Global leader with strong competitive position World market leader in 90% of Dürr‘s business portfolio All automobile OEMs worldwide as customers Large installed base supporting service growth Strong emerging markets presence with 60% share of global incoming orders High entry barrie
Slide 5: Transparent group structure with 3 global divisions
Transparent group structure with 3 global divisions DÜRR Group Paint and Assembly Systems Measuring and Process Systems Clean Technology Systems Paint Systems Paint and Final Balancing and Environmental Assembly Assembly and Energy Systems Products Systems Application Cleaning and Energy
Slide 6: Overview divisions: Engineering with high ROCE
Overview divisions: Engineering with high ROCE Paint and Assembly Measuring and Process Clean Technology Systems Systems Systems 2009 2010 … 2013e 2009 2010 … 2013e 2009 2010 … 2013e Sales (€ m) 698.1 849.2 324.9 344.7 54.6 67.9 EBIT (€ m) 0.0 24.4 10.7 9.0 2.2 3.5 EBIT-margin (%) 0.0 2.9 4-6 3.3 2.
Slide 7: China: The most important market for Dürr
China: The most important market for Dürr Incoming orders Incoming orders Sales 2010 (2009) 2010 (2009) 2010 (2009) 15.2% 20.4% (21.5%) 22.4% (16.8%) (10.6%) Emerging 35.9% Mature markets* (23.1%) markets 40% 60% (49%) (51%) 10.4% (13.4%) 21.5% 26.3% 7.9% (27.0%) (33.3%) (11.9%) 20.5% 19.5% (25.9%)
Slide 8: Agenda
Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Markets 4. Financial overview, outlook and summary © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 -8-
Slide 9: Strategy: Growth and optimization in focus
Strategy: Growth and optimization in focus Growth Core business/Emerging markets Customer benefit Product innovation Growth initiatives Acquisitions Process optimization Setup of Clean Technology Portfolio disbursal Value creation Systems division Restructuring Optimization
Slide 10: Strategy: Focus on emerging markets
Strategy: Focus on emerging markets Annual car production in the emerging markets alone to grow by 17 m units by 2015 Dürr strategy: Further expansion of capacities in the growth markets: Brazil, India & China => more than 30% of employees in the emerging markets by 2013 Expansion of local ski
Slide 11: Strategy: Early presence in the growth markets
Strategy: Early presence in the growth markets is basis for our leading market position Established since… Brazil 47 years ~ 140 employees Mexico 45 years ~ 150 employees China 27 years ~ 1,000 employees*) India 20 years ~ 330 employees Russia 13 years ~ 30 employees *including 300 external workers
Slide 12: Strategy: Significant adjustment of capacities to demand changes
Strategy: Significant adjustment of capacities to demand changes Germany 2005 2010 Δ in % Employees 3,205 2,931 -8.5 Incoming orders* 249.3 249.1 0.0 Western Europe 2005 2010 Δ in % North America 2005 2010 Δ in % Employees 1,078 854 -20.8 Incoming orders* 406.1 201.4 -50.4 Employees 822 466 -43.3 In
Slide 13: Strategy: Growth
Strategy: Growth “Buy and build” acquisitions/product innovation Acquisitions example: Glueing technology Kleinmichel and Rickert - Application technology - Specialists for glueing technology in the final assembly process (e.g. windows, roofs, cockpits) and in the body shop - Growing markets: repl
Slide 14: Strategy: Product innovation (1)
Strategy: Product innovation (1) Rollout EcoDryScrubber: already 36 orders received! CPU-reduction: around 10 € per car body, energy savings up to 30% Dry overspray separation system for wet paints Automated separation of overspray without water and chemicals Effective re-circulation of proc
Slide 15: Strategy: Product innovation (2)
Strategy: Product innovation (2) EcoBell 3: The new universal atomizer generation Highest process flexibility: one atomizer for internal, external and plastic part painting Best in class performance: color-change < 10 ml, colour change time < 10s Lowest complexity, compact dimensions No volt
Slide 16: Strategy: Ongoing optimization process
Strategy: Ongoing optimization process Localization/Global Processes Capacity Adjustments Rigorous localization of Dürr-Products in At the same time consolidation in Western the Emerging Markets Europe - Supplement product portfolio with low- - Capacity reduction in line with local cost/low-end
Slide 17: Key focus: Expanding the service business
Key focus: Expanding the service business Modifications and upgrades: ~50% of sales Spare parts and repair: ~30% of sales Maintenance Assessments ~20% of sales Seminars 2008 2009 2010 … 2013e Sales revenues (€ m ) 395.9 263.3 362.0 ~490.0 in % of group sales 24.7 24.4 28.7 28 © Dürr Aktien
Slide 18: Agenda
Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Markets 4. Financial overview, outlook and summary © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 - 18 -
Slide 19: Markets: Our view
Markets: Our view The car industry: A vital industry – with challenges and opportunities Voiced beliefs during crises Revised view for 2015+ Long period of stagnation ahead X Massive growth from 60 to 90 m units until 2020 Market Growth limited only to BRIC countries X BRIC AND NAFTA equally contrib
Slide 20: Markets: Worldwide automotive industry with steady growth
Markets: Worldwide automotive industry with steady growth in m units (cars only) +3.9% p.a. 88 90 85 86 81 83 77 +3.5% p.a. 73 69 +31 m units 64 66 61 61 62 59 59 57 52 52 52 54 50 45 47 46 42 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11e ’12e ’13e ’14e ’15e ’16e ’17e ’18e ’19
Slide 21: Light vehicles: Further increase in production forecast
Light vehicles: Further increase in production forecast CAGR of more than 6% over the next 4 years Region 2009 2010 2011 2012 2013 2014 2015 CAGR 2009-2015 North America 8.5 (-32.5%) 12.0 (41.2%) 12.5 (4.2%) 13.3 (6.4%) 14.1 (6.0%) 14.8 (5.0%) 15.0 (1.4%) 9.9% Mercosur 3.3 (-2.9%) 4.2 (27.3%) 4.5 (7
Slide 22: Markets: China outlook too conservative?
Markets China outlook too conservative? Vehicles per 1,000 inhabitants 900 USA 800 700 600 Germany 500 400 300 200 Mexico If China reaches penetration rates of Brazil or Mexico in Brazil 2015, the expected capacity increases are too 100 China 2015 ? conservative by 10-20 m units China 2008 China 201
Slide 23: Agenda
Agenda 1. Dürr: Global leader with strong competitive position 2. Strategy 3. Markets 4. Financial overview, outlook and summary © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 - 23 -
Slide 24: Order backlog corresponds to 13 months' sales
Order backlog corresponds to 13 months‘ sales 2010/2009 2008 2009 2010 ∆ in % in € m Incoming orders 1,464.0 1,184.7 1,642.2 38.6 Sales revenues 1,602.8 1,077.6 1,261.4 17.1 Orders on hand (end of period) 925.0 1,002.4 1,359.1 35.6 Gross profit on sales 285.2 210.8 237.2 12.5 Gross profit margin (%)
Slide 25: Incoming orders on pre-crisis level
Incoming orders on pre-crisis level in € m 600 Incoming orders 542 quarterly average 500 2010: € 411 m Ø 2007/2008: € 406 m 144 400 362 375 364 339 339 398 298 59 101 100 300 80 282 152 66 252 280 208 259 196 274 200 187 262 232 64 212 Measuring and 94 120 Process Systems 100 144 72 Paint and Assemb
Slide 26: Order backlog at record high
Order backlog at record high Delivery of order backlog €m 1,400 1.400 1,359 1,359 1,200 1.200 21% 1,082 1,002 35% 1,000 1.000 17% 925 in 2012 or later 14% 805 22% 800 800 17% 79% 600 600 83% 86% 83% 78% 65% in 2011 400 400 200 200 00 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2010 Measuring a
Slide 27: Cash flow: Above expectations in 2010
Cash flow: Above expectations in 2010 2007 2008 2009 2010 in € m 2005 2005 2004 2004 EBT 34.8 46.4 -12.2 12.5 Income taxes -5.8 -11.9 -16.3 -17.4 Net interest 22.9 29.3 18.9 21.7 Amortization and depreciation 17.8 14.4 19.9 18.0 Changes NWC 37.0 -22.2 94.9 31.9 Provisions -4.1 -2.4 -15.4 -8.3 Other
Slide 28: Solid financial structure
Solid financial structure 12/31/2007 12/31/2008 12/31/2009 12/31/2010 in € m Equity 257.1 341.4 301.4 319.4 Equity ratio 23.9% 31.4% 31.1% 26.3% Net financial status -61.8 -34.4 3.0 23.6 Net working capital 128.9 151.8 57.4 27.3 DWC (Days working capital) 31.4 34.1 19.2 7.8 ROCE 15.0% 16.8% 1.6% 9.4
Slide 29: Financials
Financials Longterm financing secured at attractive rates Bond issued: € 225 m, due 09/2015, Ø interest rate 6.8% Redemption of previous high yield bond (coupon: 9.75%, € 100 m) € 80 m syndicated loan credit (12/31/2010: unused) € 252 m liquidity (12/31/2010) Current negotiations with bank
Slide 30: Outlook: On the way to 6%-EBIT-margin
Outlook: On the way to 6%-EBIT-margin in € m in % 2000 20 1900 1800 15 1700 1600 10 Sales Incoming orders 1500 Gross margin 1400 5 EBIT margin 1300 1200 0 1100 1000 -5 2005 2006 2007 2008 2009 2010 2011 … 2013 © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 - 30 -
Slide 31: Shareholder structure: Increasing free float
Shareholder structure: Increasing free float Shareholder structure (as of 02/17/2011) 7.9% 5.0% 28.1% Heinz Dürr GmbH, Berlin 28.1% 3.5% Heinz und Heide Dürr Stiftung GmbH, 9.9% Stuttgart 45.6% Institutionelle und private Investoren1) 9.9% ATON GmbH, Fulda 3.5% 7.9% Harris Associates L. P., Chicago
Slide 32: Summary: Improving market conditions, positioning for growth
Summary: Improving market conditions, positioning for growth 1. Ongoing demand, order pipeline is filling, a lot of new projects are coming to the market (e.g. China, Brazil) 2. Positioning for growth: focus on China, product innovation and new business segments (environmental & energy business) 3.
Slide 33: Financial calendar
Financial calendar 05/03/2011 Interim report for the first quarter of 2011 05/06/2011 Annual general meeting, Bietigheim-Bissingen 08/04/2011 Interim financial report for the first half of 2011 11/03/2011 Interim report for the first nine months of 2011 Contact: Dürr Aktiengesellschaft Günter Dielma
Slide 34: © Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011
© Dürr Aktiengesellschaft, CCI, Roadshow Benelux, April 19, 2011 - 34 -
Slide 35: Competitive situation/market shares
Competitive situation/market shares* Business units Paint and Final Assembly Systems Dürr 40-50%, Eisenmann 20%, Taikisha 13%, Local Competitors: Scivic, Giffin, Geico, Trinity (Toyota) Application Technology Dürr >50%, ABB 15-20%, Fanuc 15-20%, Yaskawa <10% Aircraft and Technology Systems Airbus Va
Slide 36: Chinese production share by origin and brand December 2010
Chinese production share by origin and brand December 2010 Toyota 5% Honda 4% Nissan 5% Other Chinese 22% Suzuki 2% Mazda 2% Other Japanese 1% Japan 19% Geely 3% VW 12% China 48% Europe 16% BYD 3% USA 10% Chery 6% Korea 7% PSA 3% Other European 1% Chang´an 7% GM 8% Wuling 7% Ford 2% KIA/Hyundai 7% S