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Duerr IR Presentation
Duerr IR Presentation
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DISCLAIMER
This publication has been prepared independently by Dürr AG/Dürr Group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results,
events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not
limited to those described in Dürr´s disclosures, in particular in the chapter “Risks” in Dürr´s annual report. Should one or more of these risks, uncertainties and other factors
materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those
described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,”
“estimate,” “will,” “project” or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of
developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external
agencies.
Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International
Financial Reporting Standards). Dürr´s net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics.
Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The
calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial
metrics used at Dürr can be found in our financial glossary on the Dürr web page (http://www.durr.com/investor/service-faqs-glossar-contact/glossary/financial-glossary/).
1. Executive Summary
3. Group strategy
1. Executive Summary
3. Group strategy
• Operating EBIT • Operating EBIT • Operating EBIT • Operating EBIT1 • Operating EBIT
€ 70 m (82 m) € 64 m (59 m) € 3 m (6 m) € 66 m (80 m) € 94 m (71 m)
• EBIT margin • EBIT margin • EBIT margin • EBIT margin • EBIT margin
6.0% (6.8%) 10.3% (13.6%) 1.8% (3.7%) 12.7% (12.8%) 7.0% (4.1%)
• Operating EBIT margin • Operating EBIT margin • Operating EBIT margin • Operating EBIT margin • Operating EBIT margin
6.0% (7.2%) 10.4% (10.5%) 1.8% (3.7%) 12.9% (12.8%) 7.7% (6.6%)
Application Technology Dürr ~50%, ABB ~20%, Fanuc ~15%, Yaskawa ~10%; local competitor: Doolim
Clean Technology Systems Dürr 40-50%2, John Zink/KEU 20%, CTP 10%
Woodworking Machinery
Dürr 31%, Biesse 12%, scm group 11%, Schelling/IMA 7%; local competitors: Nanxing, KTD
and Systems
1 own estimates, average of last 3 years
2 market share relating to business with exhaust-gas purification systems for automotive paint shops
EBIT 771 70 -
PRODUCT EFFICIENCY
Continued cost pressure and unfavorable COST
pricing
EBIT 761 64 -
Incoming orders 2008: € 950 m Incoming orders 2017: € 1,812 m Incoming orders 2020e
24%
28%
30%
35%
48%
61%
15%
24%
35%
EBIT 6 3 -
EBIT 80 65 -
EBIT 45 86 -
ONE HOMAG
EBIT margin according to budget EBIT margin according to budget EBIT margin according to budget
Measures 150
146
Expansion of product range towards simpler and cheaper 113
solutions & standardization of machines 108
100 82
Expansion of manufacturing capacity to a production
65
volume of € ~150 m within the next years
Rollout of new sales concept with strong key account 50
management, also in China
Service capacity increase due to machinery sales growth 0
2012 2013 2014 2015 2016 2017
Increase local engineering & development capacity
1. Executive Summary
3. Group strategy
Dürr strategy 2020 targets: up to € 5bn sales, 8-10% EBIT margin, >30% ROCE
Cost per unit in a paint shop Reduction of resource consumption/emissions in paint shops of a German OEM
Smart Smart
• e.g. predictive maintenance, • e.g. iTAC.MES.Suite,
Services Factories
documentation/maintenance ADAMOS IIoT platform,
via pad, internet, QR code digital market places LOXEO
and tapio
Next step: Scaling up ADAMOS by integrating additional partners from the machinery industry. Latest
partners: ENGEL & Karl Mayer
LOXEO and tapio: market places for IIoT apps and digital services
Suppliers’ and competitors’ machines can also take part and contribute
information/data
No software vendor lock-in
Dürr Digital Factory: 70 specialists develop new apps
42% 8.000
4.000
Maintenance,
assessments,
40% 2.000
seminars
1. Executive Summary
3. Group strategy
NWC increase due to a changed payment pattern of customers (lower prepayments); no major change in 2018
Decline in cash flow due to increase in NWC, cash flow improvement in 2018 expected
Equity ratio increased to 26.5% in 2017; equity ratio of 30% as long-term goal
Net financial status expected to reach € 240-280 m at year end 2018
ROCE for FY 2018 should reach the upper end of 30-40% range
Assets
Costs and estimated earnings in excess of billings (construction contracts) 353.6 357.1 469.3
Liabilities
Total balance (total work in process less billings) -211.9 -202.6 -84.9
+3%
in m units1 Ʃ 111.0
120,0 +4%
Ʃ 98.1
CAGR 3,6
Ʃ 94.0
100,0 2,9 +6%
2,5
+16%
34,5
28,9 +5%
80,0 27,1 +7%
40,0
+2% 25,1
22,1 +4% 23,0
20,0
20,3 0% 20,4 +3% 22,6
0,0
2017 2018 2022
1Light vehicles production
Source: PwC, Autofacts
Others China Asia (w/o China) Europe Americas Last update: January 2018
CAGR +4%
in € m
5.000 Ʃ 4,229 Furniture production
breakdown
Ʃ 3,550 390
4.000 +8% Machinery for
285 703 wooden houses
China
3.000 583 +5% US
Machinery for doors, 36% 39% Germany
2.000 windows, flooring
3.135
Italy
2.682 +4%
Furniture machinery India
1.000 4%
market 12%
4% Other
0 5%
2016 2020e
HOMAG Sales Share
3,700-
3,600- 3,900
3.876 3,900 3.767 3.715 24,0 8,6 7.0-
3.702 3.574 23,0 23,1 23,5 7,6 7,8
3.467 22,0 7.5
7,1
2.793
2.575
2014 2015 2016 2017 2018e 2014 2015 2016 2017 2018e 2014 2015 2016 2017 2018e 2014 2015 2016 2017 2018e
Declining EBIT margin due to swing in extraordinary effects (extraordinary effects 2018e: € 15-20 m, thereof € 5-10 m
for FOCUS 2.0 optimization program at Paint and Final Assembly Systems)
EBIT margin before extraordinary effects approx. stable
Index Category e.g. MDAX (Performance); CDAX (Performance); FAZ Index, Stoxx 600
Remarkable long-term
outperformance compared to
1.400 DAX & MDAX
Dürr
1.300 indexiert
Dürr highly benefited from China
1.200
DAX boom due to its strong emerging
1.100 indexiert
markets presence
1.000 MDAX
900
indexiert HOMAG takeover in 2014 took
some time to be understood, but
800
then levered the Dürr share.
700
600 In 2015, China fears impacted the
500
stock markets and Dürr, too.
400 Skeptical view on Dürr in early
300 2016 changed with strong
200 quarterly results
100 Digitization as further value driver
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
41%
14%
45% 23 equity research analysts cover Dürr
ø target price: 108.39 €
Target price range between 75 and 130 €
86% recommend to buy or hold the Dürr share
Maturity /
April 3, 20211 5, 7, 10 years (issued March 2016)
Repayment
Nominal value EUR 1,000.00 -
Rating Since 2010 it does exist neither a company rating nor a bond rating -
EBIT 176.9 203.0 220.9 267.8 271.4 289.6 Cash flow from operating activities
Free cash flow
Operating
117.6 329.1 291.3 173.0 227.4 119.8
cash flow Economic Value Added (EVA)
Free cash Also non-financial performance indicators tracked, e.g.
65.9 261.9 221.1 62.8 129.9 14.3
flow
Employee and customer satisfaction
ROCE 47.4 76.2 38.7 45.3 41.1 39.5 Training/education
Ecology/sustainability
EVA 99.3 124.3 121.6 146.2 142.5 145.5
R&D/innovation
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