Report for the third quarter of 2021

Quarterly Statement

January 1 to September 30, 2021 Dräger Group

THE DRÄGER GROUP OVER THE PAST FIVE YEARS

											Nine months
			2021		2020		2019		2018		2017
Order intake	€ million	2,237.0	3,039.2	2,016.1	1,931.2	1,928.3
Net sales	€ million		2,402.9		2,290.9		1,898.8		1,729.1		1,737.0
Gross profit	€ million		1,163.0		1,087.2		808.8		732.7		776.8
Gross profit / Net sales	%		48.4		47.5		42.6		42.4		44.7
EBITDA 1, 2, 4	€ million		354.3		319.1		87.5		22.0		105.8
EBIT 2, 3, 4	€ million		257.0		228.3		-2.9		-41.0		43.5
EBIT 2, 3, 4 / Net sales 4	%		10.7		10.0		-0.2		-2.4		2.5
Interest result	€ million		-16.6		-26.1		-13.5		-9.5		-9.9
Income taxes	€ million		-69.8		-67.0		5.5		15.8		-9.1
Net profit	€ million	170.6	135.2	-10.9	-34.7	24.5
Earnings per share on full distribution 5
per preferred share	€		7.96		5.58		-0.60		-1.85		1.05
per common share	€		7.91		5.53		-0.65		-1.90		1.01
DVA 4, 6, 7	€ million		325.0		197.7		3.2		-16.1		67.0
Equity 4, 8	€ million		1,254.6		938.0		1,010.7		1,028.8		1,008.8
Equity ratio 4, 8	%		39.7		31.0		39.8		44.9		45.0
Capital employed 2, 4, 8, 9, 10	€ million		1,441.6		1,525.8		1,431.7		1,283.4		1,213.7
EBIT 3, 6 / Capital employed 2, 8, 9, 10 (ROCE) 4	%		29.5		19.5		7.0		5.6		12.6
Net financial debt 2, 4, 8, 11, 12	€ million		95.2		491.7		150.8		69.3		16.1
Headcount as at September 30			15,883		15,441		14,790		14,233		13,642

1. EBITDA = Earnings before net interest result, income taxes, depreciation and amortization
2. For effects of the first-time application of IFRS 16 on the figures as at December 31, 2019, see table on page 37 of our annual report 2019.
3. EBIT = Earnings before net interest result and income taxes
4. The first-time application of IFRS 16 in fiscal year 2019 impacts this key figure. Therefore, comparability is limited.
5. Based on an imputed actual full distribution of earnings attributable to shareholders
6. Value of the last twelve months
7. Dräger Value Added = EBIT less cost of capital of average invested capital
8. Value as at reporting date
9. Capital employed = Total assets less deferred tax assets, securities, cash and cash equivalents, non-interest bearing liabilities and other non-operating items
10. Due to the redefinition of capital employed in December 2019, the figures for 2019 have been adjusted.
11. As at September 30, 2021, including the remaining payment obligation from the termination of the series D participation certificates of EUR 202.6 million
12. Including the payment obligation of EUR 451.2 million from the termination of the participation certificates as at September 30, 2020

3

QUARTERLY STATEMENT DRÄGER GROUP Q3 2021 Business performance of the Dräger Group

The first nine months of 2021 at a glance

DRÄGER RECORDS STRONG BUSINESS PERFORMANCE

• Net sales and earnings increase year-on-year in the first nine months of 2021
• However, third quarter net sales and earnings see year-on-year decline
• Order intake still at increased level, but lower than prior year

"In the first nine months of 2021, our "Technology for Life" was still in high demand with pandemic-driven demand only gradually normalizing." Stefan Dräger, Chairman of the Executive Board of Drägerwerk Verwaltungs AG, says. "Our order intake in the third quarter developed positively."

Possible rounding differences in this financial report may lead to slight discrepancies.

This financial report has been set up in German and English language. In case of any discrepancy between the German and English version, the German version shall prevail.

4

QUARTERLY STATEMENT DRÄGER GROUP Q3 2021 Business performance of the Dräger Group

Business performance of the Dräger Group

BUSINESS PERFORMANCE OF THE DRÄGER GROUP

							Third quarter						Nine months
							Change						Change
			2021		2020		in %		2021		2020		in %
Order intake	€ million		759.6		747.8		+1.6		2,237.0		3,039.2		-26.4
Net sales	€ million		769.6		862.5		-10.8		2,402.9		2,290.9		+4.9
Gross profit	€ million		360.9		416.1		-13.3		1,163.0		1,087.2		+7.0
Gross profit / Net sales	%		46.9		48.2				48.4		47.5
EBITDA 1	€ million		81.0		156.7		-48.3		354.3		319.1		+11.0
EBIT 2	€ million		47.9		126.7		-62.2		257.0		228.3		+12.6
EBIT 2 / Net sales	%		6.2		14.7				10.7		10.0
Net profit	€ million	30.8	81.5	-62.1	170.6	135.2	+26.2
Earnings per share on full distribution 3
per preferred share	€		1.45		3.34		-56.6		7.96		5.58		+42.7
per common share	€		1.43		3.32		-56.9		7.91		5.53		+43.0
DVA 4, 5, 6	€ million		325.0		197.7		+64.4		325.0		197.7		+64.4
Research and development costs	€ million		80.9		68.2		+18.6		230.0		208.7		+10.2
Equity ratio 7	%		39.7		31.0				39.7		31.0
Cash flow from operating activities	€ million		94.2		59.8		+57.4		266.5		93.7		> +100
Net financial debt 7, 8, 9	€ million		95.2		491.7		-80.6		95.2		491.7		-80.6
Investments	€ million		46.1		52.6		-12.4		142.5		113.4		+25.6
Capital employed 7, 10	€ million		1,441.6		1,525.8		-5.5		1,441.6		1,525.8		-5.5
Net working capital 7, 11	€ million		590.3		735.7		-19.8		590.3		735.7		-19.8
EBIT 2, 4 / Capital employed 7, 10 (ROCE) 5	%		29.5		19.5				29.5		19.5
Net financial debt 7, 8, 9 / EBITDA 1, 4	Factor		0.17		1.16				0.17		1.16
Gearing 8, 9, 12	Factor		0.08		0.52				0.08		0.52
Headcount as at September 30			15,883		15,441		+2.9		15,883		15,441		+2.9

1. EBITDA = Earnings before net interest result, income taxes, depreciation and amortization
2. EBIT = Earnings before net interest result and income taxes
3. Based on an imputed actual full distribution of earnings attributable to shareholders
4. Value of the last twelve months
5. The first-time application of IFRS 16 in fiscal year 2019 impacts this key figure. Therefore, comparability is limited.
6. Dräger Value Added = EBIT less cost of capital of average invested capital
7. Value as at reporting date
8. As at September 30, 2021, including the remaining payment obligation from the termination of the series D participation certificates of EUR 202.6 million
9. Including the payment obligation of EUR 451.2 million from the termination of the participation certificates as at September 30, 2020
10. Capital employed = Total assets less deferred tax assets, securities, cash and cash equivalents, non-interest bearing liabilities and other non-operating items
11. Net working capital = Trade receivables and inventories less trade payables, customer prepayments, short-term operating provisions and other short-term operating items
12. Gearing = Net financial debt / equity

5

QUARTERLY STATEMENT DRÄGER GROUP Q3 2021 Business performance of the Dräger Group

ORDER INTAKE

In the first nine months, order intake fell by 25.2 % (net of currency effects) following the very strong rise in the prior year. The downward trend at Group level was strongest in Europe, where order intake was down by almost 34 %. There were also fewer orders in the Africa, Asia, and Australia region, and in the Americas region. Orders in the third quarter were on par with the prior year (net of currency effects). The decrease in order intake in Europe was offset by an increase in the Africa, Asia, and Australia region as well as in the Americas region.

Orders in the medical division were down by 30.0 % in the first nine months of the year (net of currency effects) with the strongest decline in Europe. Demand was also down in the Africa, Asia, and Australia and Americas regions. The pandemic-driven demand had a positive impact in the third quarter. Order intake grew by 18.7 % net of currency effects. All of our regions contributed to this growth.

In the safety division, order intake fell by 15.5 % in the first nine months of the year (net of currency effects). While we recorded a drop in orders in Europe, order intake rose in the Africa, Asia, and Australia region. Order intake in the Americas region almost reached the prior-year level. Orders declined even more significantly in the third quarter, at 21.0 % (net of currency effects), which was solely attributable to business performance in Europe. We had received a large order for FFP masks from the United Kingdom in the prior-year period.

ORDER INTAKE

								Third quarter							Nine months
								Net of								Net of
						Change		currency					Change		currency
in € million		2021		2020		in %		effects in %		2021		2020		in %		effects in %
Medical division		485.7		405.9		+19.7		+18.7		1,400.1		2,039.8		-31.4		-30.0
Safety division		273.9		341.9		-19.9		-21.0		836.9		999.4		-16.3		-15.5
Total		759.6		747.8		+1.6		+0.6		2,237.0		3,039.2		-26.4		-25.2
thereof Europe		407.3		437.8		-7.0		-7.1		1,222.7		1,848.7		-33.9		-33.5
thereof Germany		160.5		113.2		+41.7		+41.7		478.7		826.0		-42.0		-42.0
thereof Americas		142.3		132.0		+7.8		+6.3		439.0		509.5		-13.8		-8.8
thereof Africa, Asia, and Australia		210.0		178.1		+17.9		+15.2		575.4		681.0		-15.5		-15.0

NET SALES

Net sales increased by 6.3 % (net of currency effects) in the first nine months of the year. Deliveries in all regions rose, with the greatest growth recorded in the Americas and Africa, Asia, and Australia regions. In the third quarter, net sales decreased by 11.8 % (net of currency effects). All regions contributed to this decrease. Net sales in the medical division decreased, while we recorded growth in all regions in the safety division.