- 1 - Conference Call Results January - June 2012 Dürr Group Ralf W. Dieter, CEO Ralph Heuwing, CFO Bietigheim-Bissingen, August 1, 2012 www.durr.com
Nov 12, 2014
- 1 -
Conference Call Results January - June 2012 Dürr Group
Ralf W. Dieter, CEO
Ralph Heuwing, CFO
Bietigheim-Bissingen, August 1, 2012
www.durr.com
- 2 - Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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.
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Book-to-bill ratio at 1.2
Project pipeline continues to be strong, despite weakening of macro-economic situation
Service business +22%
Order backlog at record level secures utilization well into second half of 2013
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δ Δin € m
Incoming orders 1.404,3 1.200,4 17,0% 725,2 643,4 12,7%
Sales revenues 1.163,3 783,5 48,5% 600,9 424,9 41,4%
Orders on hand (06/30) 2.386,5 1.746,9 36,6% 2.386,5 1.746,9 36,6%
H1 2012 H1 2011 Q2 2012 Q2 2011
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162 179 169 130
275 244
294
466
336 325 379 78 69 83
65
97 127
155
182
116 166
137
80 101 100
152
144 165
159
189
149
160 175
18 13 22 17
26 21
35
29
17 28
35
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
Clean TechnologySystems
Measuring and ProcessSystems
Application Technology
Paint and AssemblySystems
Continued strong growth trend in incoming
orders in € m
339 362 375 364
541 557
643 618
679 725
866
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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Incoming orders H1 2012 vs. H1 2011
in € m
1.200,4
301.0 278.9
163.9
320.2
136.5
1.404,3
291.4 318.8
262.8
460.0
71.3 0
200
400
600
800
1.000
1.200
1.400
1.600
Total China America Germany Europe w/o Germany Asia, Japan, Africa w/oChina
2011 2012+17%
-3% +14%
+60%
+44%
-48%
Strong European and US business
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
H1 H1
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Incoming orders: Healthy regional split
Incoming orders
Q3 2011-Q2 2012
(2010/2011)
Sales revenues
Q3 2011-Q2 2012
(2010/2011)
29.4%
(30.0%)
14.6%
(14.2%)
23.6%
(26.3%)
12.5%
(18.9%) 31.5%
(26.0%)
24.9%
(19.3%)
25.2%
(24.4%)
23.8%
(21.9%)
7.5%
(9.5%)
Germany
Europe w/o Germany, incl. Eastern Europe
North and South America
Asia (w/o China), Africa, Australia
China
*Asien (ohne Japan), Mexiko, Brasilien, Osteuropa
7.0%
(9.5%)
Emerging markets *
Mature markets
Emerging markets share at just under 60%
China still most important single market
41%
(43%)
Incoming orders
Q3 2011-Q2 2012
(2010/2011)
59%
(57%)
Rolling 4 quarter comparison
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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H1: EBIT doubles due to strong sales
and moderate SG&A increase
Gross margin increases to 17.6% in Q2 (Q1: 16.4%) due to high utilization and better order mix
Moderate increase of SG&A costs (+20%) well below sales increase
Financial result weaker at € -12.8 m (€ -10.1 m) due to inclusion of Campus refinancing
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δ Δin € m
Gross profit on sales 198.1 140.4 41.1% 105.8 79.1 33.8%
EBITDA 85.2 43.4 96.3% 49.7 29.0 71.4%
EBIT 72.3 33.9 113.3% 42.7 24.1 77.2%
Net income 44.0 16.0 175.0% 26.8 14.2 88.7%
H1 2012 H1 2011 Q2 2012 Q2 2011
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Temporary increase in NWC
Cash flow/free cash flow
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
in € m
EBT 59.5 23.7
Depreciation and amortization of non-current assets 12.8 9.5
Interest result 13.1 10.5
Income taxes paid -8.8 -4.3
Δ Provisions -15.2 -0.4
Δ Net working capital -120.0 -33.2
Other -6.0 -30.9
Cash flow from operating activities -64.6 -25.1
Interest paid (net) -2.1 -0.2
Capital expenditures -15.0 -8.0
Free Cashflow -81.7 -33.3
H1 2012 H1 2011
Reduction of NWC expected in H2 2012, final project payments are concentrated in H2
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DWC Within target range of 20 to 25 days despite rise in NWC
NWC: Increase along with business expansion
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
in € m
NWC in € m 151.2 32.6 63.0
DWC (Days Working Capital) 23.4 6.1 14.5
DSO (Days Sales Outstanding) 119.4 117.2 113.9
06/30/2012 06/30/201112/31/2011
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WIP and progress billings:
WIP reduction of € 31m
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
in € m
Assets
Work in process from contracts (WIP) 1,465.0 936.8 844.7
Progress billings -1,089.8 -639.2 -570.7
WIP in excess of billings 375.2 297.6 274.0
Liabilities
Work in process from contracts (WIP) -1,262.7 -1,221.9 -742.6
Progress billings 1,733.2 1,650.1 1,081.4
Billings in excess of WIP 470.5 428.2 338.8
Machinery business
WIP -33.1 -23.1 -15.3
Progress billings 32.9 18.6 15.2
Billings in excess of WIP -0.2 -4.5 -0.1
06/30/2012 06/30/201112/31/2011
1
2
3
4
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Progress billings were € 95 m higher than future receivables1) on June 30, 2012
This will lead to a future cash outflow of € 95 m
However, cashflow should benefit from higher earnings/revenues
WIP and progress billings
1) These future receivables are not included in trade receivables
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
in € m
Balance: total WIP less total progress billings
- - -95.1 -126.1 -64.7
Prepayments (liabilities)
+ 503.4 446.8 354.0
06/30/2012 12/31/2011 06/30/2011
1 2 4
2 3
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Equity ratio expected to increase during the next quarters Net financial status expected to be positive at FY end
Strong ROCE despite NWC level
1)annualized
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Equity in € m 386.6 364.3 323.2
Equity ratio in % 22.1 21.9 24.3
Net financial status in € m -48.3 51.8 -34.9
Cash in € m 235.5 298.6 195.2
Gearing in % 11.1 -16.6 9.8
ROCE1)
in % 29.5 28.4 16.4
06/30/2012 12/31/2011 06/30/2011
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Paint and Assembly Systems:
Strong order momentum continued
Solid order execution
EBIT more than doubled due to higher volume and moderate overhead cost increase
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δin € m
Incoming orders 703.4 538.5 30.6%
Sales revenues 531.2 342.8 55.0%
EBIT 29.5 14.0 110.7%
H1 2012 H1 2011
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Application Technology:
Strong EBIT development
Incoming orders in Q2 slightly weaker than in Q1, but strong pipeline
Strong earnings improvement due to high utilization and improved margin realization, EBIT
margin reached almost 10% in Q2
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δin € m
Incoming orders 303.2 282.5 7.3%
Sales revenues 264.5 171.5 54.2%
EBIT 25.0 7.2 247.2%
H1 2012 H1 2011
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Measuring and Process Systems:
Incoming orders accelerating in Q2
Incoming orders in Q2 2012: + 9.9% yoy and + 9.4% vs. Q1 2012
Ongoing strong order momentum at Balancing and Assembly Products
Earnings improvement in both business units
Cleaning and Filtration Systems positive in H1
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δin € m
Incoming orders 334.5 324.1 3.2%
Sales revenues 323.8 236.6 36.9%
EBIT 22.8 12.4 83.9%
H1 2012 H1 2011
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Clean Technology Systems:
On track in Q2
Several projects won in H1: e.g. in chemical, carbon fibre and automotive industries, strong Q2
order intake: +23% compared to Q1 2012
EBIT margin in Q2 at 6.2%
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Δin € m
Incoming orders 63.2 55.4 14.1%
Sales revenues 43.7 32.6 34.0%
EBIT 0.6 1.5 -60.0%
H1 2012 H1 2011
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Market: Strong passenger car sales in H1 2012
Change year-over-year in %
Source: VDA (German carmakers´ association)
-7%
0%
1%
9%
13%
14%
15%
57%
-10% 0% 10% 20% 30% 40% 50% 60%
Western Europe
Brazil
Germany
China
India
Russia
USA
Japan
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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17,3 19,3 20,4 21,5 22,7 23,7
19,9 19,3 20,5 21,9 22,7 23,6
19,6 21,7
23 24,2 24,9 25,7
15,3 16,9
19,5 22,2
24,4 25,9
2,5 2,4
2,6
2,7 2,8
2,9
0
10
20
30
40
50
60
70
80
90
100
110
2011 2012 2013 2014 2015 2016America Europe Asia (without China) China Other
No change in long term growth trend
China, India, Russia, Thailand & Indonesia with expected growth >10%
Source: own estimates, PWC, JD Power
Last update 2012
LV production increase by 27 m units over 5 years!
92.5 86.0
79.6
97.5 101.8
74.6
CAGR in %
3.0
11.1
5.6
3.5
6.5
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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2009 2010 2011 2012e
2005 2007 2009 2011
1,217
1,460
1,782
1,464
1,185
1,642
2,685 2,500
2009 2010 2011 2012e
1,078 1,261
1,922
2,300
Outlook: On the way to 7% EBIT margin
Sales in € m
EBIT margin
(EBIT in € m)
(5.7) (36.6)
2.9%
0.5%
5.5%
6.5 - 7%
Ongoing growth and profit improvement expected
2005 2006 2007 2008 2009 2010 2011 2012e
(106.5)
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
Incoming orders in € m
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Summary
H1 better than expected, incoming orders in Q2 above Q1 and Q2 2011,
EBIT margin already at 7.1% in Q2
Positive long term market outlook (PwC), despite current
macro-economic slowdown
Solid project execution
Positive 2012 outlook supported by order backlog, incoming orders
and pipeline. Margin goal of 6.5 - 7% within reach
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Financial calendar
Contact: Dürr Aktiengesellschaft Günter Dielmann Corporate Communications & Investor Relations Carl-Benz-Str. 34 74321 Bietigheim-Bissingen Germany Phone +49 7142 78-1785 E-Mail [email protected]
09/25/2012 Baader Conference, Munich
09/26/2012 Berenberg & Goldman Conference, Munich
11/06/2012 Interim report for the first nine months of 2012
Analyst conference
11/13-14/2012 UBS Conference, London
12/4-7/2012 Berenberg Conference, London
Dürr AG © CCI, Conference Call H1 2012, August 1, 2012
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Conference Call Results January - June 2012 Dürr Group
Ralf W. Dieter, CEO
Ralph Heuwing, CFO
Bietigheim-Bissingen, August 1, 2012
www.durr.com