ANALYST CONFERENCE DRÄGERWERK AG & CO. KGAA - MARCH 4, 2021, LÜBECK - DRAEGER
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Analyst Conference Drägerwerk AG & Co. KGaA March 4, 2021, Lübeck
Disclaimer
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.
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.
Interim financial reports as well as preliminaries are not audited.
2
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3
For your information: We are recording
This earning call will be recorded. We will consider your
continued participation as your consent to the recording and
publishing.
This will allow investors who cannot attend the webinar today to
inform and familiarize themselves with the content.
4
Dräger
Highlights 2020
Financials 2020
Outlook 2021
5
6
Consumables
FFP masks
Ventilation (Evita)
Patient
Monitoring
Workplace
Infrastructure
Service Training
7
Securing the supply chain: Hiring and training ~350 High flexibility of our workforce
500 parts from 120 supplier new employees in production and production plant allowed us
and logistics to quadruple our weekly
ventilator output
8
To meet the high demand for Global production network with Dräger Webshops giving private
FFP masks, we set up 3 new 5 sites will serve customers consumers access to high
production sites beyond Corona quality FFP masks
New production sites
Existing production sites
9
Dräger Service helped customers Ad-hoc support for Planning and installing
to keep their ICUs operational the regions hit hardest by compressed air systems
the pandemic for emergency clinics
10The
DRÄGER
TRIANGLE
is the next step
in the evolution of
the One Dräger idea
11Innovation
−Market introduction of the new
EVITA V600/V800 and Babylog
VN600/VN800 ventilators
−15 new and extended medical devices and
4 new accessory products
−12 new safety technology products
Dräger SARS-CoV-2 rapid antigen test
−Can be carried out within a few minutes
without a medical specialist
−Clinical studies are ongoing
−Approval expected in spring 2021
12FINANCIALS Fiscal Year 2020
Dräger Group
Financial performance
Net Sales (in EUR million) EBIT (in EUR million) Highlights
− Strong order entry driven by high demand
+25.7% 11.6% for COVID-19 relevant products.
FX adjusted Margin
− Orders on hand above prior year’s level
+22.5%
Nominal − Strong year-end business
396.6 − Higher gross margin (47.2%), mainly due to
3,406 higher net sales volume, high production
2,781 utilization and positive mix-effects.
2.4% − Functional expenses FX adjusted +9.7%
Margin
(nominal: +7.9%).
1,115 127
863 102 168 − Negative impact from FX on EBIT-
640 788
margin (~ -½ pp.).
-0.6 − DVA increased to EUR 296.9m
2019 Q1 Q2 Q3 Q4 2020 2019 Q1 Q2 Q3 Q4 2020 (PY EUR -32.7m).
− FY 2021 guidance:
net sales decline by 7 to 11 % (net of
currency effects), EBIT-margin 5 – 8 %
14Dräger Group
Key Figures
12M 2019 12M 2020 Change
€ million € million %
Cashflow (from operating activities) 164.4 460.0 >+100.0
Investments 121.4 178.0 46.7
1
Cash and cash equivalents 196.3 497.3 >+100.0
Net financial debt
1 88.7 187.1 >+100.0
Net financial debt 1 /EBITDA 2 0.5 0.4
Capital employed 1 1,401.3 1,410.6 0.7
ROCE (EBIT 2 / Capital employed 1 ) 4.8% 28.1%
Net Working Capital1 622.7 606.9 -2.5
Equity ratio 41.9 31.3 -10.6pp.
EPS per common shares 1.38 10.19 >+100.0
EPS per preferred shares 1.44 10.25 >+100.0
1
Values as of reporting date
2
EBITDA and accordingly EBIT of the last twelve months 15Medical division
Financial performance
Order Entry Net Sales EBIT
+48.6% +36.0% +>100%
FX adjusted FX adjusted 14.3%
EBIT-
+44.6% +32.2% 0.8% margin
Nominal Nominal EBIT-
2,499
margin 329.4
2,302
1,729 1,742
13.1
2019 2020 2019 2020 2019 2020
Comments
Q4 FY
Order − COVID-19 drives exceptional high demand for ventilators. Strong demand for Patient Monitoring
Europa -1.0% +63.3% and Consumables.
entry:
(FX adj.)
Americas +4.6% +34.6% − Higher gross margin (increase +5.5pp.) mainly due to a positive country and product mix, lower
portion of margin dilutive large tenders, and volume-related degression effects in production.
AAA -2.1% +33.0% − Functional expenses increased by 8 % (FX adjusted), mainly due to higher logistic costs and
variable payments.
Medical 0.1% +48.6%
− Negative impact from FX on EBIT-margin.
16Safety division
Financial performance
Order Entry Net Sales EBIT
+23.3% +8.5% +25.7%
FX adjusted FX adjusted 5.1%
6.1%
EBIT-
EBIT-
+20.6% 1,288 +6.3% margin
margin
1,068 Nominal 1,039 Nominal 1,104
55.8 67.2
2019 2020 2019 2020 2019 2020
Comments
Q4 FY
Order − Strong increase in demand for light breathing protection (FFP masks). All 3 new production sites
Europa +2.4% +32.6% operational.
entry:
(FX adj.)
Americas +2.1% +14.8% − Economic downturn and oil price development possible headwind going forward.
− Higher gross profit margin (increase +2.7pp.) mainly due to a positive country and product mix and
AAA -3.9% +2.9% a higher net sales volume.
Safety 1.1% +23.3% − Negative impact from FX on EBIT-margin.
17Adjustment of capital structure
Termination of participation certificates (1 of 2)
5 share types 2 share types
Participation
Certificates Distributable Earnings
(Genussscheine)
Common- and
Series A 32% Preferred shares
Series K
Series D 100%
Common- and 68%
Preferred shares
18Adjustment of capital structure
Termination of participation certificates (2 of 2)
+ ca. ~-10pp
+>
~27% 31% 100%
Earnings per share Equity ratio Net financial debt
(pro forma Dec. 2020 after termination of (Dec. 31, 2020 after termination of (Dec. 31, 2020 after termination of participation
participation certificates and equity participation certificates and equity certificates and equity increase)
increase) increase)
19Tender offer for Participation Certificates
(1 of 2)
− In order to optimize our capital structure we are currently awaiting offers for the 566,819 Profit Participation Certificates
(Genussscheine) Series D issued by Dräger.
− The offer is not made to any U.S. Person (as defined in Regulation S under the United States Securities Act of 1933,
as amended) or person located or resident in the U.S.A. The solicitation will be operated pursuant to the terms and
conditions set out in the Tender Offer Memorandum dated March 1, 2021 and is subject to further restrictions and
conditions as contained therein.
− Due to regulatory reasons we cannot give the audience more insight into the current transaction than contained in this presentation.
− We will publish the result of the offer shortly after the offer period ends.
20Tender offer for Participation Certificates
(2 of 2)
Depending on the amount of financial instruments tendered,
the following effects on several key figures of the Dräger
Group are likely to occur:
− Tender offer to Participation Certificates Series D
Tendered volume (€ million) EUR ~100m − Offer period from March 1, 2021 to March 19, 2021
− # PCs outstanding: 566,819
% of outstanding PC ~32.7 %
− Last trading price before announcement of the repurchase
Equity ratio (pro forma 2020*) +~1 pp offer: EUR ~533.20 (as of Feb. 26, 2021)
EPS (pro forma 2020*) +~6 % − Repurchase offer price: EUR 542.00
− Redemption amount Jan. 2, 2023: EUR 546.20
Remaining repayment amount (January 2023) EUR ~208m
− Liquidity as of Dec. 31, 2020:
Net financial debt no impact
− Cash & cash equivalents EUR ~497 million
− Investments in money market funds EUR ~139
million
* Pro forma calculations based on the financial statements dated December 31, 2020
21OUTLOOK Fiscal Year 2021
Dividend proposal for FY 2020
2019 (in EUR million) 2020 (in EUR million)
Net profit* 33.4 250.2
Dividend 4.3 4.5
▪ Participation certificates** 1.6 1.6
▪ Common shares 1.3 1.3
▪ Preferred shares 1.4 1.6
Net payout ratio 13.0% 1.8%
Dividend per
common share preferred share Dividend policy
Until the equity ratio reaches a level of over 40
0.13 € 0.13 € 0.19 € 0.19 € percent, Dräger will keep the dividend at the 2019
level.
2019 2020 2019 2020
* after earnings attributable to non-controlling interests
** Without minimum dividend, after taxes
23Outlook FY 2021
2020 guidance1 2020 2021e
Net Sales growth 1.0 % – 4.0 % 26.1 % -7.0 % to -11.0 %
(net of currency effects)
EBIT margin 1.0 % – 4.0 % 11.6 % 5.0 % to 8.0 %2
Gross profit margin Prior year’s level (42.7%) 47.2 % Prior year’s level
+/-1 pp +/-1 pp.
Dräger Value Added EUR -70m to +20m EUR 297.0m EUR +44 to +142m
1 at the beginning of the year
2 based on exchange rates at the start of the year 2021
24Questions & Answers
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