Drägerwerk : Presentation for the first quarter of 2024

Q1 Conference Call

Drägerwerk AG & Co. KGaA

April 25, 2024, Lübeck

Disclaimer

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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 and preliminaries are not audited.

Drägerwerk AG & Co. KGaA

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Agenda

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01

02

03

Dräger

Business Highlights

Financials

Q1 2024

Outlook

FY 2024

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01

Dräger

Business Highlights

Drägerwerk AG & Co. KGaA

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Q1 2024

Solid business

performance

Positive result with

earnings and net sales

below Q1 '23 as expected

Highlights

Positive operating result in traditionally weak first quarter; earnings and net sales below prior- year level as expected after extraordinary improvement in Q1 '23

New regional structure: solid net sales growth in Germany and EMEA, slight decrease in Americas, significant decline in APAC

Annual shareholders' meeting: significant dividend increase for FY 2023 to be approved; focus on our corporate objectives.

Technology for Life remains in demand: Order intake above the high level of the prior-year quarter

Strong development in safety division vs. soft development in medical division

FY 2024 guidance confirmed

Net sales	EBIT
EUR 735.8 million	EUR 15.1million
(-2.6%fx-adj.;	(-EUR 14 million)
-3.3% nominal)

Operating cash flow	EBIT margin
EUR 33.5 million	2.0%
(+EUR 37.7 million)	(-1.8 pp)

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02

Financials

Q1 2024

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Business development Group

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Net sales (€ million)		-2.6%
		fx-adj
		-3.3%
	761	nominal
	736
EBIT (€ million)	Q1'23	Q1'24

3.8%	-48.1%	2.0%
EBIT	EBIT
margin		margin

	29,1
		15,1
Drägerwerk AG & Co. KGaA	Q1'23	Q1'24

Order entry	Q1 2023	Q1 2024	Change
(€ million)			(fx-adj.)
Germany	200,7	212,1	+5.7
EMEA	288,8	312,0	+7.9
Americas	143,4	160,4	+10.8
APAC	170,8	126,3	-22.2
Total	803.8	810.8	+1.5

• Order entry slightly above high prior-year level due to growth in Germany, EMEA and Americas. Significant decline in AAA, primarily due to the lack of the prior year's tailwind from demand for ventilators in China.
• Net sales below prior-year level after extraordinary improvement in Q1 '23 when Dräger benefited from a noticeable improvement in delivery capability and the China effect.
• Gross profit margin increased to 45.3% due to good margin development in safety division.
• Functional expenses only slightly above prior-year level (fx-adj.: 1.9%; nominal: 1.4%).
• EBIT positive, but below prior-year level due to the Q1'23 base effects.
• Rolling 12-months DVA (EUR 10.9 million) significantly improved.

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Business development Medical

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Net sales (€ million)		-10.4%
		fx-adj
		-11.2%
	470	nominal
		417
EBIT (€ million)	Q1'23		Q1'24
	2.2%	>-100%	-2.7%
	EBIT	EBIT
	margin		margin

10.2

-11.2

Drägerwerk AG & Co. KGaA

Order entry	Q1 2023	Q1 2024	Change
(€ million)			(fx-adj.)
Germany	107.1	108.2	+1.0
EMEA	148.3	159.4	+7.5
Americas	88.4	106.9	+18.9
APAC	121.5	79.2	-31.1
Total	465.3	453.7	-1.9

• Order entry slightly below prior-year level, particularly due to missing China effect as well as decreased demand for hospital infrastructure, consumables and services.
• Net sales significantly below prior-year level, especially due to Q1'23 base effects.
• Gross profit margin also lower (-1.3pp), mainly due to less profitable product mix and lower production utilization.
• Functional expenses well below prior-year level (fx-adj.:-3.2%; nominal: -3.8%).
• EBIT significantly below prior-year figure.
• Rolling 12-months DVA (EUR -65.2 million) significantly improved, but still negative.

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Q1'23 Q1'24

Business development Safety

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Net sales (€ million)		+10.0%
		fx-adj
		+9.3%
	291	nominal	318
EBIT (€ million)	Q1'23		Q1'24

6.5%	+39.5%	8.3%
EBIT	EBIT
margin		margin

	18.8	26.3
Drägerwerk AG & Co. KGaA	Q1'23	Q1'24

Order entry	Q1 2023	Q1 2024	Change
(€ million)			(fx-adj.)
Germany	93,7	104,0	+11.0
EMEA	140,4	152,6	+8.3
Americas	54,9	53,5	-2.2
APAC	49,4	47,1	-0.1
Total	338,4	357,2	+6.1

• Order entry increased, driven by occupational health and safety equipment, respiratory and personal protection products as well as alcohol and drug testing devices.
• Net sales significantly higher, driven by good overall demand, especially in EMEA and Germany.
• Gross profit margin also up (+2.2pp), particularly as a result of the high production utilization and good price enforcement.
• Functional expenses significantly above prior-year level, mainly due to an increase in sales-related capacities (fx-adj.: +10.5%; nominal: +10.1%).
• EBIT and rolling 12-months DVA (EUR 76.1 million) significantly improved.

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Key figures

			Q1 2024				Q1 2023		Change
			€ million				€ million	%
Cashflow (from operating activities)		33.5	-4.2	>+100
Investments		22.7			30.4		-25.2
Cash and cash equivalents1		211.7				219.6		-3.6
Net financial debt1	192.4	290.4	-33.7
Net financial debt1 / EBITDA2
0.6			2.4
Capital employed 1	1,526.5	1,569.2	-2.7
ROCE (EBIT2/Capital employed1)		10.0%			-1.6%
Net Working Capital1		671.7			699.2		-3.9
Equity ratio		47.4	44.3		+3.1pp
Headcount1		16,476			16,284		+1.2

1 Values as of reporting date | 2 EBITDA and accordingly EBIT of the last twelve months

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