disclaimer - leading medical & safety technology...overview 2019 4 unsatisfying profitability...
TRANSCRIPT
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Disclaimer
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Interim financial reports as well as preliminaries are not audited.
This presentation contains forward-looking statements regarding the future development of the Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to it to date, and have been made to the best of its knowledge and belief. No guarantee or liability for the occurrence of the future developments and results specified can be assumed in respect of such forward-looking statements. Rather, the future developments and results are dependent on a number of factors; they entail risks and uncertainties beyond our control and are based on assumptions which could prove to be incorrect. Notwithstanding any legal requirements to adjust forecasts, we assume no obligation to update the forward-looking statements contained in this presentation.
This presentation does not constitute an offer of securities for sale or a solicitation of an offer to purchase any securities. No money, securities or other consideration is being solicited by this presentation.
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OVERVIEWFiscal Year 2019
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Overview 2019
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Unsatisfying profitability
Strong top-line development
Product portfolio rejuvenation progressing: successful launch of the Atlan and new Evita.
Increasing regulatory hurdles, FDA Warning letter.New organizational set-up in place.
Particularly good order development in safety. Safety orders increased in all product categories.
Lower demand development in AAA.
Growth in 2019 well balanced: All 3 regions, medical and safety contributing.
Rising uncertainty, global economy cooling down.Higher investments of 2018/19 are starting to pay off.
Unsatisfying order development in medical.
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The DRÄGER
TRIANGLEis the next step
in the evolution of the One Dräger idea
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Safety organization
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Processing Industries
− Large national & international companies
− Served directly through Dräger sales force & strategic key account management
Emergency & Rescue Services
− Public authorities, e.g. fire departments, emergency service, defense forces, law enforcement
− Sales through tender processes and within standard fiscal budgeting frame
Manufacturing Industries
− Focus wide industrial market (SMEs) for Occupational Health & Safety Equipment
− Broad market for alcohol/drug testing
− Mostly indirect distribution, including OEM & digital business
VISION ZERO TRUSTED ADVISOR PROTECTING YOU TO PROTECT OTHERS
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…in a safeand secure
environment.
CertificatesEncryption
SystemSecurity
DataPrivacy
…enabling new clinical
applications…
Data Analytics
RemoteControl
ClinicalDecisionSupport
Smart Assist& Automation
…and areinteracting
with oneanother…
Medical-Grade Data
OpenCommu-nication
Bidirectional
StandardizedMedical devicesare connected as a system…
We envision a future of Acute Care where…
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Medical devicesare connected as a system…
The new Atlan and the new EvitaConnected technology using SDC
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High awareness created byinteroperability / SDC readiness.
Protective Ventilation and Connected Technologies as key topic
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Medical organization
− Software applications and systems products, new services
− Strategic growth area, IT-, software- and data-driven
− Patient monitors
− Essential part of our Hospital strategy, drive networked systems with BU IT&System and BU Therapy
− Supply units, lights, GMS
− Project business with special business mechanics and value creation processes
− Anesthesia, ventilation, thermoregulation
− Core business with therapy devices, strong market position and long standing business relationship
− Generic and device-specific accessories
− Growth area, fast turning, efficient supply chain, close cooperation with device BUs
IT & Systems Therapy Patient Monitoring WPI HCA
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FINANCIALSFiscal Year 2019
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2,595
602 634 663 885
2,781
2018 Q1 Q2 Q3 Q4 2019
Business development Dräger Group
Net Sales (in EUR million)
+5.9%FX adjusted
+7.2%Nominal
Order intake +2.8% cc. Orders on hand slightly above prior year’s level.
Strong year-end business.
Gross profit margin stable at 42.7% (PY 42.7%).
Functional expenses increased due to investment program, restructuring charges and additional unplanned cost.
FY EBIT-margin stable at 2.4%.
Full-year FX impact positive on net sales and irrelevant on EBIT. (FY FX: Net sales growth +1.2pp)
DVA declined to EUR –32.7m (PY EUR –26.5m).
Highlights
62.6
-11 -2 9
69 66.6
2018 Q1 Q2 Q3 Q4 2019
EBIT (in EUR million)
2.4%Margin
2.4%Margin
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Functional ExpensesDräger Group
12M 2018 12M 2019 Changenet of FX
€ million € million %
R&D -252.2 -263.7 4.6 3.3
% of Net Sales -9.7% -9.5%
Sales & Marketing -592.6 -621.9 4.9 3.9
% of Net Sales -22.8% -22.4%
Administration -198.5 -219.4 10.6 10.0
% of Net Sales -7.6% -7.9%
SG&A -791.1 -841.3 6.4 5.5
% of Net Sales -30.5% -30.3%
Other operating income 1.0 -11.7
Functional Expenses total -1,042.2 -1,116.8 7.2 6.4
% of Net Sales -40.2% -40.2%
Headcount1 14,845 3.1 1 Values as of reporting date
Change
%
14,399
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Key FiguresDräger Group
12M 2018 12M 2019
€ million € million
Cashflow from operating activities 4.1 >+100
Investments 77.8 1.4
Cash and cash equivalents1 179.6 9.3
Net financial debt1 43.3 >+100
Net financial debt 1 /EBITDA 2 0.3
Capital employed 1 1,341.3 4.5
ROCE (EBIT 2 /Capital employed 1 ) 4.7%
Net Working Capital1 644.6 -3.4
Equity ratio 44.8 -3.0pp
EPS per common shares (on full distribution) 1.42 1.38
EPS per preferred shares (on full distribution) 1.48 1.44
1 Values as of reporting date2 EBITDA and accordingly EBIT of the last twelve months
78.8
196.3
88.7
0.5
1,401.3
4.8%
622.7
41.9
Change
%
164.4
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Region AmericasFinancial performance
Order intake:
Positive order entry in North America, as well as in Central-South America. Good demand for Gas Detection and Service offerings.
Gross profit margin: +0.4 pp yoy
Functional expenses (FX adjusted): FY +1.8% yoy
DVA EUR -37.5m (PY EUR -51.6m)-30.2
-14.2
Order Entry
EBIT
526 553
2018 2019
+1.5%FX adjusted
+5.1%Nominal
+53%-6.0%EBIT-margin
-2.6%EBIT-margin
Net Sales
499 548
2018 2019
+5.9%FX adjusted
9.7%Nominal
Comments
2018 2019
Q4 FYMedical -0.9% -1.0%Safety -1.8% +7.0%Americas -1.2% +1.5%
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Region EuropeFinancial performance
Order intake:
Good top line growth in Germany (FY order entry +8.7%) with mixed performance in other European countries.
Gross profit margin: -0.5 pp yoy
Functional expenses (FX adjusted): FY +6.8% yoy
DVA EUR 23.1m (PY EUR 41.5m)
82.068.5
2018 2019
Order Entry
EBIT
1,450 1,529
2018 2019
+5.5%FX adjusted
+5.4%Nominal
-17%5.7%EBIT-margin
4.6%EBIT-margin
Net Sales
1,432 1,503
2018 2019
+5.1%FX adjusted
+5.0%Nominal
Comments
Q4 FYMedical +4.8% +2.1%Safety +10.6% +10.3%Europe +7.3% +5.5%
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Region Africa, Asia, AustraliaFinancial performance
Order intake:
Strong order growth in China was overcompensated by decline in orders in India and MEA.
Gross profit margin:+0.6 pp yoy
Functional expenses (FX adjusted): FY +10.0% yoy
DVA EUR -18.4m (PY EUR -16.3m)
10.812.4
2018 2019
Order Enty
EBIT
710 714
2018 2019
-1.6%FX adjusted
+0.6%Nominal
+15%1.6%EBIT-margin
1.7%EBIT-margin
Net Sales
664 730
2018 2019
+7.6%FX adjusted
+9.9%Nominal
Comments
Q4 FYMedical -10.2% -6.8%Safety +3.9% +11.6%AAA -6.1% -1.6%
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Medical divisionFinancial performance
Order intake:
Solid FY net sales growth in all Regions and nearly all product areas. Order entry declined in Americas and AAA.
Gross profit margin: +0.2 pp yoy
Functional expenses (FX adjusted): FY +4.7% yoy
6.913.1
2018 2019
Order Entry
EBIT
1,723 1,729
2018 2019
-1.2%FX adjusted
+0.3%Nominal
+91%0.4%EBIT-margin
0.8%EBIT-margin
Net Sales
1,643 1,742
2018 2019
+4.6%FX adjusted
+6.0%Nominal
Comments
Q4 FYEuropa +2.1% +4.8%Americas -0.9% -1.0%AAA -10.2% -6.8%Medical -0.7% -1.2%
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Safety divisionFinancial performance
Order intake:
Solid FY Order- and net sales growth in all Regions an in nearly all product areas.
Gross profit margin: -0.3 pp yoy
Functional expenses (FX adjusted): FY +9.6% yoy
55.853.5
Order Entry
EBIT
963 1,068
2018 2019
+10.0%FX adjusted
+10.9%Nominal
-4%5.9%EBIT-margin
5.1%EBIT-margin
Net Sales
952 1,039
2018 2019
+8.4%FX adjusted
+9.1%Nominal
Comments
2018 2019
Q4 FYEuropa +10.6% +10.3Americas -1.8% +7.0AAA +3.9% +11.6Safety +7.0% +10.0
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OUTLOOKFiscal Year 2020
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2018 2019
Dividend proposal for FY 2019
* after earnings attributable to non-controlling interests** Without minimum dividend, after taxes
Dividend percommon share preferred share Dividend policy
2018 (in EUR million) 2019 (in EUR million)
Net profit* 34.4 33.4
Dividend 4.3 4.3
Participation certificates** 1.6 1.6
Common shares 1.3 1.3
Preferred shares 1.4 1.4
Net payout ratio 12.6% 13.0%
2018 2019
0.19 € 0.19 €Dräger plans to distribute at least 10% of group net profit (less earnings attributable to non-controlling interests) to the company’s shareholders and participation certificate holders.
0.13 €0.13 €
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Outlook FY 2020
2019 guidance1 2019 2020e
Net Sales(net of currency effects)
4.0 % – 6.0 % 5.9 % 1.0 % – 4.0 %
EBIT margin 1.0 % – 3.0 % 2.4 % 1.0 % – 4.0 %2
Gross profit margin Prior year’s level (42.7%) +/-1 pp
42.7 % +/- 1 pp
Dräger Value Added EUR -60m to -10m EUR -32.7m EUR -70 to +20m
1 last published guidance2 based on exchange rates at the start of the year 2020
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Questions & Answers
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