DÜRR AKTIENGESELLSCHAFT DÜRR INVESTORS DAY 2014 DÜRR 2017 STRATEGY Ralf W. Dieter, CEO Ralph Heuwing, CFO Bietigheim-Bissingen, May 9, 2014 www.durr.com 1
STRATEGY 2017: OVERVIEW Vision LEADING IN PRODUCTION EFFICIENCY Values Customers Innovations Accretion Employees Sustainability Strategy Innovation Globalization Service Efficiency Goals 2017 2.8 3.0 bn sales (incl. acquisitions) >8% ROS (EBIT) >30% ROCE Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 2
CORNERSTONES DÜRR 2017 STRATEGY Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 3
CORNERSTONES DÜRR 2017 STRATEGY Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 4
POSITIONING OF DÜRR: LEADING IN PRODUCTION EFFICIENCY Claim positioned and recognized in the market Claim implementation across all BUs completed Customer feedback: Dürr meets expectations and is seen as innovation leader Cost advantage for the customer Positioning sustainability Differentiation from competitors Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 5
CORNERSTONES DÜRR 2017 STRATEGY Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 6
INNOVATION WILL BE ACCELERATED FURTHER R&D expenses in m 50 45 40 35 30 25 20 15 10 5 0 3,100 patents 25.8 3,200 patents 29.5 3,400 patents 37.2 3,700 patents 43.0 4,000 patents 47.0 2010 2011 2012 2013 2014e Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 7
INNOVATIONS AT A GLANCE Examples from the business units EcoDCMACS Modular anode control system EcoRPL033 Painting robot EcoCCore Solvent-based parts cleaning machine Eco+Energy CPS HT Compact Power System EcoPositioner Aircraft component positioning system XONDO Balancing machine for turbochargers Customer benefit and differentiation in greenfield business Stimulation of modernization investments in brownfield business Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 8
CORNERSTONES DÜRR 2017 STRATEGY Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 9
GROWTH EMERGING MARKETS Emerging markets 2005 2014e CAGR in % Employees 860 2,900 10.7 Incoming orders (in m) 328 1,300 16.5 Consolidation after strong growth phase and capacity increase, focus in future: Enlargement of revamp/service teams and extension of local skill, further increase of local value-added in manufacturing, sourcing and project management Test center in China planned; in Japan currently installed at Parker Engineering Expansion of presence in South-East Asia +2,040 employees Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 10
EXTERNAL GROWTH VIA ACQUISITIONS Acquisition targets between 50 m and 300 m in sales volume Target areas: mechanical and plant engineering, automation technology, measuring systems, environmental business Market niches without major players, also without major Chinese players No restructuring cases but targets with earnings improvement potential Globalization/localization in emerging markets; making use of Dürr s excellent positioning in these markets Operational improvements (e.g. processes, best practice, tools) and/or synergies (e.g. R&D, purchasing, sales, service) Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 11
CORNERSTONES DÜRR 2017 STRATEGY Service Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 12
GROWTH OPPORTUNITIES IN SERVICE 2009 2010 2011 2012 2013 2014e Service revenues (in m) 263.3 262.0 445.0 506.9 535.6 >565 In % of group revenues 24 29 23 21 22 24 Target: Make full use of Dürr s increased installed base for spare parts, repair & maintenance and revamp business Strengthening capacities in emerging markets, enlargement of revamp team and reinforcement of service management team CustomerExcellence@Dürr project to improve customer satisfaction and loyalty; started in 2013; effects to be seen from 2014 onwards Biggest training program in Dürr history started => all employees will be trained ( soft skills ) Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 13
CORNERSTONES DÜRR 2017 STRATEGY Innovation Globalization LEADING IN PRODUCTION EFFICIENCY Service Efficiency Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 14
EFFICIENT GLOBAL PROCESSES BASIS FOR PROFITABILITY Implementation of processes IT systems, tools Global Technology Knowhow Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 15
STRATEGIC FOCUS IN PAINT AND ASSEMBLY SYSTEMS Extend/maintain market and innovation leadership Intensified development of own products => differentiation from competitors Cost reduction => localization Selective insourcing New test and training centers around the world Focus on revamp and service business Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 16
STRATEGIC FOCUS IN APPLICATION TECHNOLOGY Extend/maintain market and innovation leadership Expansion in glueing technology Increased insourcing/in-house production of key components Localization: commissioning and production of paint supply systems in China and Mexico Expansion in SEA/Japanese OEMs New test and training centers around the world Upgrading/extension of service offering Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 17
STRATEGIC FOCUS IN MEASURING AND PROCESS SYSTEMS Expansion targets: measuring and control technology, automation, balancing technology => active player in market consolidation Increased offering of standard/low end machines in emerging markets (total cost of ownership); higher penetration of low end market Expansion of activities: Testing => trucks; driver assistance systems Filling => CO 2 ; disposal of old refrigerants New field in cleaning technology: water-based surface treatment; expansion in precision cleaning Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 18
STRATEGIC FOCUS IN CLEAN TECHNOLOGY SYSTEMS Expansion exhaust air purification systems => new fields of application Expansion VAM: Ventilation Air Methane Expansion cogeneration (combined heat and power generation) and high-temperature heat pump Stronger globalization/emerging markets Insourcing of key components Integration LTB Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 19
SUMMARY Innovation leadership Service expansion Global expansion => emerging markets Efficiency: continuous improvement process, capital efficiency, portfolio optimization Acquisitions Dürr: Strongly cash-generating company, solidly financed, generating value with ROCE >30% Dürr Aktiengesellschaft, Investors' Day 2014, Dürr 2017 Strategy, May 9, 2014 20
DÜRR AKTIENGESELLSCHAFT DÜRR INVESTORS DAY 2014 DÜRR 2017 STRATEGY Ralf W. Dieter, CEO Ralph Heuwing, CFO Bietigheim-Bissingen, May 9, 2014 www.durr.com