Durr Ag · XETR:DUE
Durr — Q1 2008 Earnings Presentation
20 slides from Durr's earnings presentation, Apr 29, 2008
Slide 1: Welcome to the conference call: Results January-March 2008
Welcome to the conference call Dürr AG Results January-March 2008 Dürr Group Stuttgart, April 29, 2008
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 and product development. Such statements should be carefully considered, and it should b
Slide 3: Book to bill: 1.5
Book to bill: 1.5 Q1 2008 Q1 2007 ∆ in € m Incoming orders 517.8 508.3 +1.9% Sales revenues 356.2 304.1 +17.1% Orders on hand (03/31) 1,210.4 1,006.2 +20.3% § Incoming orders above the already high Q1 2007 figure and significantly above sales § Still lots of projects in the market; no weakening to b
Slide 4: Incoming orders and sales regionally balanced
Incoming orders and sales regionally balanced Incoming orders Sales revenues Q1 2008 (2007) Q1 2008 (2007) 13.4% (18.7%) 19.4% 19.5% (22.0%) (24.1%) 36.6% (17.3%) 22.6% 39.6% (17.3%) 38.5% (42.4%) (36.6%) 10.4% (21.6%) Germany Europe excl. Germany North & Southamerica Asia, Africa, Australia § China
Slide 5: Emerging markets: Growth drivers
Emerging markets1): Growth drivers Incoming orders Incoming orders Incoming orders FY 2005 FY 2007 Q1 2008 27% 73% 57% 43% 48% 52% Emerging markets Mature markets 1) Asia (without Japan), Mexico, Brazil, Eastern Europe Dürr AG © CCI, Conference Call Q1 2008, April 29, 2008 -5-
Slide 6: Employees: 20.6% of workforce in emerging markets
Employees: 20.6% of workforce in emerging markets 12/31/03 in % 03/31/07 in % 03/31/08 in % Germany 3,680 54.3 3,018 53.2 3,029 50.5 Western Europe 1,226 18.1 935 16.5 919 15.3 North America 994 14.7 721 12.7 781 13.0 Emerging markets1) 843 12.4 959 16.9 1,238 20.6 Others 30 0.5 37 0.7 41 0.6 Dürr G
Slide 7: Positive net result already in Q1 2008
Positive net result already in Q1 2008 Q1 2008 Q1 2007 ∆ in € m Gross profit on sales 60.6 50.5 +20.0% EBITDA 14.8 7.2 +105.6% EBIT 10.4 3.0 +246.7% Net income/loss 4.5 -2.1 - § Gross margin improved to 17.0% (16.6%), higher efficiency, effects of service/revamp strategy, improved order quality § SG
Slide 8: Cash flow strongly improved
Cash flow strongly improved Cash flow/free cash flow Q1 2008 Q1 2007 in € m EBT 6.3 -2.4 Depreciation and amortization of non-current assets 4.4 4.2 Interest result 4.4 5.7 Income taxes paid -3.7 -2.0 ∆ Provisions 0.7 -5.9 ∆ Net working capital 26.4 4.3 Other -17.5 -12.9 Cash flow from operating act
Slide 9: Positive NWC development
Positive NWC development Figures/analysis 03/31/2008 03/31/2007 ∆ in € m Equity 253.0 243.6 +3.9% Equity ratio 23.3% 23.7% - Net financial debt 57.2 123.7 -53.8% Net working capital 96.5 155.5 -37.9% DWC (Days working capital) 24.4 46.0 -47.0% § Equity ratio below last year´s level due to currency e
Slide 10: Key ratios continue to improve
Key ratios continue to improve Gearing1) in% DWC in days 40 50 35 34.3 44.1 40 40.9 30 28.2 25 25.5 30 29.2 20 19.1 25.1 24.4 18.4 15 20 10 10 5 0 0 2004 2005 2006 2007 Q1 2008 2004 2005 2006 2007 Q1 2008 250 242.8 Net financial debt in € m 200 150 100 96.5 84.9 50 60.7 57.2 0 1) Net financial debt
Slide 11: Prepayments from customers stabilized
Prepayments from customers stabilized Prepayments/order backlog in % Risk analysis: 25 Even if order backlog declined by € 500 m, Dürr’s finance need would increase only by 20.8 20.8 20 around € 70 m 16.4 15 15.6 14.9 14.0 13.7 13.2 13.1 12.5 12.3 12.4 12.4 11.8 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: Paint and Assembly Systems: Full order pipeline
Paint and Assembly Systems: Full order pipeline Q1 2008 Q1 2007 in € m Incoming orders 386.4 403.7 Sales revenues 268.8 228.4 EBIT 9.1 2.6 § Sales +17.7% § Incoming orders: High level achieved; further projects to be awarded in the next quarters Dürr AG © CCI, Conference Call Q1 2008, April 29, 2008
Slide 13: Measuring and Process Systems: Strong improvements
Measuring and Process Systems: Strong improvements Q1 2008 Q1 2007 in € m Incoming orders 131.3 104.6 Sales revenues 87.4 75.7 EBIT 2.3 0.6 § Balancing and Diagnostic Systems: Double digit order growth (e.g. power plants). Earnings above budget § Cleaning and Filtration Systems: Incoming orders abov
Slide 14: Financial structure: Flexibility and stability
Financial structure: Flexibility and stability as of 03/31/2008 € 200.0 m bond € 16.8 m bilaterals € 145.9 m cash € 100.0 m unused credit line ~ € 250 m financial headroom Goals/background for financial restructuring a) Financial headroom to be at least maintained (increase of credit facilities depe
Slide 15: Summary: Profitable growth
Summary: Profitable growth § 2008: Sales growth of up to 10% § 2008: Strong earnings growth to achieve 5% EBIT margin (up from 3.8% in 2007) § Healthy order book with good visibility and margin quality § Improved order execution processes § Turnaround in final assembly business § Requests for quotat
Slide 16: Financial Calendar
Financial Calendar 05/02/2008 Annual general meeting 08/07/2008 Interim report first half 2008 11/06/2008 Interim report January - September 2008 Contact: Dürr Aktiengesellschaft Günter Dielmann Corporate Communications & Investor Relations Otto-Dürr-Strasse 8 70435 Stuttgart Germany Phone: +49 (0)7
Slide 17: Dürr AG © CCI, Conference Call Q1 2008, April 29, 2008
Dürr AG © CCI, Conference Call Q1 2008, April 29, 2008 - 17 -
Slide 18: Shareholder structure April 10, 2008
Shareholder structure April 10, 2008 Dürr AG © CCI, Conference Call Q1 2008, April 29, 2008 - 18 -
Slide 19: DWC of mechanical engineering companies in Germany
DWC of mechanical engineering companies in Germany 14,0% 12,0% 12.3% 10,0% 10.5% 9.7% 8,0% 8.3% 7.7% 7.1% 6.8% 6.8% 6,0% 5.4% 4.8% 4,0% 4.3% 4.0% 3.4% 3.4% 3.5% 2,0% 2.0% 0,0% 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-149 150-169 >170 Days Source: KPMG Dür
Slide 20: Adjusted divisional figures 2007
Adjusted divisional figures 2007 PAS MPS in € m Incoming orders 6 months 708.3 204.2 Sales revenues 6 months 479.8 170.5 EBITDA 6 months 9.3 10.2 EBIT 6 months 4.1 6.8 Incoming orders 9 months 988.4 318.7 Sales revenues 9 months 743.0 272.0 EBITDA 9 months 18.4 17.5 EBIT 9 months 10.1 12.5 Incoming