1 Annual Report 2013 A STRONG BASIS
2 1.1 Key figures (IFRS) / 2012 change in % Incoming orders million 2, , , Orders on hand (Dec. 31) million 2, , , Sales revenues million 2, , , of which abroad % ,3 ppts EBIT million EBT million Net profit million Cash flow from operating activities million Cash flow from investing activities million Cash flow from financing activities million Free cash flow million Equity (with non-controlling interests) (Dec. 31) million Net financial status (Dec. 31) million Net working capital (Dec. 31) million Employees (Dec. 31) 8,142 7,652 6, of which abroad % ppts Gearing (Dec. 31) % Equity ratio (Dec. 31) % ppts EBIT margin % ppts ROCE % ppts EVA million Dürr stock 1 (ISIN: DE ) High Low Close Number of shares 34,601,040 34,601,040 34,601,040 Earnings per share Dividend per share On May 27, 2013, Dürr issued bonus shares in a ratio of 1:1. As a result, the total number of shares doubled to 34,601,040. For reasons of comparability, the 2012 and 2011 figures for Dürr stock have been adjusted accordingly. 2 XETRA 3 Dividend proposal for the annual general meeting Minor variances may occur in the computation of sums and percentages in this report due to rounding.
3 Dürr AG PAINT AND ASSEMBLY APPLICATION MEASURING AND CLEAN TECHNOLOGY SYSTEMS TECHNOLOGY PROCESS SYSTEMS SYSTEMS Paint systems Final vehicle assembly systems Aircraft production technology Paint application technology Sealing technology Glueing technology Balancing technology Testing technology Filling technology Assembly technology Exhaust-air purification technology Energy efficiency technology Cleaning technology 1.2 SALES REVENUES BY DIVISION KEY FIGURES / DÜRR AG 4.4 % CLEAN TECHNOLOGY SYSTEMS million 24.3 % MEASURING AND PROCESS SYSTEMS million % PAINT AND ASSEMBLY SYSTEMS 1,176.9 million 22.4 % APPLICATION TECHNOLOGY million
4 Dürr AG PAINT AND ASSEMBLY APPLICATION MEASURING AND CLEAN TECHNOLOGY SYSTEMS TECHNOLOGY PROCESS SYSTEMS SYSTEMS Paint systems Final vehicle assembly systems Aircraft production technology Paint application technology Sealing technology Glueing technology Balancing technology Testing technology Filling technology Assembly technology Exhaust-air purification technology Energy efficiency technology Cleaning technology 1.2 SALES REVENUES BY DIVISION KEY FIGURES / DÜRR AG 4.4 % CLEAN TECHNOLOGY SYSTEMS million 24.3 % MEASURING AND PROCESS SYSTEMS million % 22.4 % APPLICATION TECHNOLOGY million PAINT AND ASSEMBLY SYSTEMS 1,176.9 million COVER PHOTO After the paint has been applied, the surface quality of the car body is carefully checked under a bright light provided by special lamps.
5 1 A STRONG BASIS Dürr performed well again in Cash flow and earnings continued to increase, and our share price rose by 92 %. We invested more than ever in our employees, new products and the expansion of our business locations. We have a strong basis to ensure continued positive development. Dürr has a solid financial foundation, an innovative approach and experience in dealing with complex projects. The expertise of our employees is appreciated worldwide. Many carmakers rely on Dürr technology and trust in our promise: Leading in Production Efficiency. Nothing is more important to Dürr than the trust of our customers. That s why we are doing our best to support them even more: with a global presence, sustainable products and measurable efficiency gains in their plants. Find out more from page 18 onwards. GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
6 2 70 Page 18 Page 28 ANTENNAS Page 36 Im Service-Geschäft ist Geschwindigkeit gefragt. Um schnell reagieren zu können, betreiben wir in vielen Automobilwerken kleine, dezentrale Service-Niederlassungen so genannte Antennas. Bis heute haben wir rund 70 Antennas eingerichtet Tendenz steigend. Page MIO. IM JAHR 2013 STIEG DER SERVICE-UMSATZ AUF 536 MIO.. DAVON ENTFIELEN RUND 30 % AUF DAS ERSATZTEIL- GESCHÄFT, 55 % AUF KLEINERE MODERNISIERUNGSAUFTRÄGE UND 15 % AUF WARTUNGSAUFTRÄGE, TRAININGS UND ASSESSMENTS ZUR ANLAGENOPTIMIERUNG.
7 3 MANAGEMENT AND STOCK Letter from the Board of Management / 4 Report of the Supervisory Board / 8 Dürr on the capital market / 14 A STRONG BASIS Customer proximity / 18 Update / 28 Practical test / 36 On an upward trend / 46 GROUP MANAGEMENT REPORT The Group at a glance / 53 Company-specific leading indicators / 65 External determinants of business performance / 67 Corporate governance report / 69 Strategy / 78 Economy and industry environment / 83 Board of Management s overall assessment / 86 Business performance / 89 Financial development / 102 Research and development / 112 Procurement / 117 Employees / 118 Sustainability / 121 Events subsequent to the reporting date / 126 Report on risks, opportunities and expected future development / 127 CONSOLIDATED FINANCIAL STATEMENTS Audit opinion / 151 Consolidated statement of income / 152 Consolidated statement of comprehensive income / 153 Consolidated statement of financial position / 154 Consolidated statement of cash flows / 155 Consolidated statement of changes in equity / 156 Notes to the consolidated financial statements / 158 OTHER Responsibility statement by management / 241 Ten-year summary / 242 Glossary / 244 Index of charts and tables / 246 Index / 248 COVER Key figures Divisions Highlights 2013 P. 45 PAGE REFERENCE P. 244 GLOSSARY REFERENCE WWW INTERNET REFERENCE GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
8 4 MANAGEMENT AND STOCK Letter from the Board of Management Letter from the Board of Management DEAR SHAREHOLDERS, CUSTOMERS, BUSINESS ASSOCIATES, AND EMPLOYEES, The year 2013 was as eventful as the two preceding years. The Dürr team executed a large number of orders in parallel, and new projects were planned in dialog with our customers. At the Group s technology centers, our engineers and technicians intensified the pace of product development also with regard to a highlight in the calendar for 2014: our Open House innovation exhibition in May, where we expect to welcome over 1,000 customer representatives from all over the world to Bietigheim-Bissingen. First of all, the last financial year, 2013, was yet another record year in which our earnings, cash flow and net financial status reached all-time highs. We consider 2013 another milestone in the process of the company s ongoing further development. This process was launched in 2005, and we have since paved the way for sustainable corporate success together with our managers and employees. The list ranges from the implementation of worldwide IT systems and the extension of internal cooperation within the Group all the way through to systemization of order execution. Expenditure on R&D doubled in comparison with 2005, and so did the size of the workforce in the Group s innovation departments. In 2013, Dürr once again benefited from this fundamental work, which is evident not least in the increase in the EBIT margin to 8.4 %. At the same time, the Group s foundations were reinforced even further: at a capex level of 51.2 million, we invested more money than ever before; since 2012, 13 locations have been newly built or equipped with additional floorspace for product development, manufacturing and engineering. An overview of this can be found in the Customer proximity section on page 18 of this report. Thanks to the additional capacities, we are able to cope well with the high volume of business our sales have increased by over 120 % since For our customers, the high level of investment means even more quality, speedier delivery as well as additional options and facilities for training courses and product evaluations.
9 MANAGEMENT AND STOCK Letter from the Board of Management 5 RALF W. DIETER (52) RALPH HEUWING (47) CEO CFO / Paint and Assembly Systems / Clean Technology Systems / Application Technology / Dürr Consulting / Measuring and Process Systems / Corporate Communications / Finance/Controlling / Human Resources (Employee Affairs Director) / Research & Development / Quality Management / Internal Auditing / Corporate Compliance / Investor Relations / Risk Management / Legal Affairs/Patents / Information Technology / Global Sourcing GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
10 6 MANAGEMENT AND STOCK Letter from the Board of Management A look at our workforce clearly illustrates Dürr s further development. Since the end of 2011, over 1,300 additional employees have joined our organization. They have contributed new ideas and fresh impetus to the company and have helped to reliably execute the large number of orders placed across the globe. Inducting these new employees into their jobs is an accomplishment for which we owe our experienced managers and colleagues a great deal of appreciation. It fills us with pride to see how all employees in the Group are pulling in the same direction and showing a shared dedication to their projects. Quite often, colleagues from seven or eight nations are involved in single large-scale orders. Their team spirit and determination to impress customers with their performance is evident throughout the company. We wish to cordially thank all our employees for their commitment and dedication! Dürr has a strong basis. The Group is the market and technology leader, operates with efficient processes and structures and is more strongly represented in the emerging markets than the competition. What additional plans do we have in store for our organization? The primary objective is to optimize our service operations. We are devoting more attention to this project at present than to most others. We have analyzed the status quo of our service operations and defined 43 optimization measures from speeding up spare part deliveries and expanding our organization, capacities and IT tools all the way through to employee training and complaints management. In the medium term, we plan to increase the proportion of sales accounted for by services from 22 % at present to between 25 and 30 %. The starting position for this is favorable since our installed base has grown in tandem with the increase in the volume of business in recent years. Our market potential is likewise growing in the modernization business. In North America and Western Europe, in particular, where numerous manufacturing plants are showing their age, we are helping our customers to achieve greater production efficiency through the integration of new technologies. How our teams support the automotive industry in the sophisticated and challenging modernization business can be seen in the Update report on page 28. In the future we will continue to pay special attention to the new business fields which we have developed by means of smaller-scale acquisitions since Activities such as glueing technology, energy efficiency technology, balancing technology for turbochargers and filling technology for general industry have immense future potential
11 MANAGEMENT AND STOCK Letter from the Board of Management 7 and are received well by our customers. With the aid of the global Dürr network, we are gradually opening up new markets in this context. We are also planning further acquisitions with a view to rounding off our core business. The high level of liquidity million at the end of fiscal 2013 shows that we are well prepared to achieve this. Sharing the views of the heads of the business units, we have an optimistic outlook for the future. Our target is to raise our sales by up to 5 % per annum, in parallel with the growth in global automobile production. Our earnings should at least maintain the high level recorded in Dürr is now passing through one of the most exciting and successful phases of its 119-year corporate history. The Group has coped well with the growth of recent years. We will not rest on our laurels, however, but intensify Dürr s development even further. As the Management Board, we will continue to devote ourselves to our unique company with a full sense of commitment. In doing so, we know that we can rely on the backing of our managers and employees alike. We will assign even greater importance to our customer and service orientation and justify Dürr s good reputation on the capital market through our reliable performance. April 26, 2013, marked a watershed for Dürr: Heinz Dürr retired as Chairman of the Supervisory Board of Dürr AG after 23 years and was followed by Klaus Eberhardt. Heinz Dürr was always passionately committed to the company and was an important advisor to the Board of Management, even in difficult times. On behalf of all managers and employees, we would like to express our deepest thanks for everything he has done for Dürr. We would also like to thank our customers and business partners for the good collaboration in 2013, and the shareholders of Dürr AG for the trust they have placed in us. Sincerely, RALF W. DIETER / CEO RALPH HEUWING / CFO Bietigheim-Bissingen, March, 17, 2014 GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
12 8 MANAGEMENT AND STOCK Report of the Supervisory Board Report of the Supervisory Board DEAR SHAREHOLDERS, This report gives me the opportunity to contact you for the first time in my capacity as Chairman of the Supervisory Board of Dürr AG. On April 26, 2013, I was elected by the Supervisory Board as the successor of Heinz Dürr, who had served as the Board s Chairman for 23 years. His work had been shaped by his extraordinary experience, expertise and passionate commitment for the company founded by his grandfather. On behalf of the entire Supervisory Board, I would like to offer my warmest thanks to Heinz Dürr for his outstanding contribution to the continued strategic development of the Dürr Group. At the meeting on March 12, 2013, the Supervisory Board appointed Heinz Dürr Honorary Chairman for life, thereby ensuring that he will continue to be a key figure for the company and its employees. In 2013, Dürr was able to build on its success of the previous years. Earnings reached an all-time high, net financial status was well into positive territory, and Dürr generated a significant cash inflow from operating activities. The company is benefiting from its innovation strategy and its strong presence in the growth markets. Another key strategic element is the expansion of the service and modernization business, on which the Board of Management is placing great emphasis. Dürr is also increasing its activities in the energy efficiency sector, one of the most important topics of the future. At the same time, Dürr is investing in the expansion of its site network, thus laying the foundation for continuing the successful development of its core business. The Supervisory Board discussed these strategic measures at length with the Board of Management in The Supervisory Board will continue to take a constructive yet critical approach in supporting the Board of Management. The Supervisory Board advised the Board of Management extensively in 2013 and performed all tasks assigned to it by law and by the articles of incorporation. The Board of Management informed the Supervisory Board in a timely and comprehensive manner about business development, strategic measures, company planning and any activities requiring consent. The Supervisory Board adopted all resolutions following the thorough review and critical evaluation of the relevant written decisionmaking materials. The Supervisory Board closely monitored the Board of Management s conduct of the company s affairs and confirms that the Board of Management always acted lawfully, diligently and economically. In operational, financial, legal and other matters, the Board of Management effectively used the risk management system and regularly consulted the Compliance and Legal Departments as well as Controlling and Internal Auditing. The Supervisory Board was regularly and comprehensively informed of any risks and supported the Board of Management effectively regarding the further development of the risk control and monitoring system.
13 MANAGEMENT AND STOCK Report of the Supervisory Board 9 KLAUS EBERHARDT Six regular Supervisory Board meetings were held in No member attended fewer than four meetings. The Chairman of the Supervisory Board personally met with the Board of Management on a regular basis. The other members of the Supervisory Board were informed of the outcome of their discussions in a timely manner. KEY TOPICS OF THE MEETINGS The business performance and financial position of the Group and its segments were analyzed in detail at all 2013 meetings. Special emphasis was placed on the development of key economic figures such as incoming orders, sales, EBIT and EBIT margin, ROCE, net working capital, cash flow and net financial status. In addition, the Board of Management provided regular information on the market volume and projects due to be awarded in the automotive industry. At the meeting held on March 12, 2013, the Supervisory Board focused on the review of the 2012 annual financial statements. The agenda for the annual general meeting on April 26, 2013, was also addressed. The discussion mainly centered on the proposed issue of bonus shares. Further topics included the competitive situation in paint shop construction and under the heading Industry 4.0 the importance of the ongoing digitization of production processes for Dürr. Personnel development was one of the topics addressed during the discussion of the first personnel report of the year. Following a proposal by the Personnel Committee, the Supervisory Board also decided to GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
14 10 MANAGEMENT AND STOCK Report of the Supervisory Board adjust the fixed remuneration component as well as the parameters and upper limit of LTI payments for the Board of Management. The focus of the meeting immediately preceding the annual general meeting on April 26, 2013, was the analysis of the order backlog as well as cash and cash equivalents. After the annual general meeting, the Supervisory Board held a further meeting in order to elect the Chairman, as mentioned above. The meeting on July 31, 2013, was initially dominated by HR topics such as the employee survey, remuneration and growing the workforce. In addition, the Board of Management explained the integration plan for Luft- und Thermotechnik Bayreuth GmbH (LTB) acquired on July 4. The Supervisory Board had approved the acquisition of LTB s assets by way of circulation. Further topics included the current risk report and the strategic reorientation of the Cleaning and Surface Processing business unit (formerly Cleaning and Filtration Systems). Furthermore, the Supervisory Board agreed to increase the investment framework in 2013 and was informed by Professor Dr. Loos about the meeting of the Audit Committee held prior to the Supervisory Board meeting. Following a proposal by the Audit Committee, the Supervisory Board authorized the offloading of further pension obligations by the Board of Management. At the meeting on October 2, 2013, the Board of Management reported on the earnings forecast upgrade on September 30 and Dürr s business expectations for the end of the year. Further topics of the meeting were the completion of the new mechanical engineering site in Shanghai Baoshan, the aircraft manufacturing technology business as well as growth initiatives in the service business. Lastly, the Board of Management outlined its strategy in the area of filling technology, following the increase of the investment in the Danish filling system specialist Agramkow to 100 % on October 1. The Supervisory Board had given its approval to this by way of circulation. One of the key points of the meeting held on December 11, 2013, was the strategy for 2014 to Presentations were given by the members of the Board of Management as well as the heads of the business units. Based on this, the Supervisory Board approved the company planning for 2014 and acknowledged the planning for 2015 to In addition, it analyzed the current risk report. The Chairmen of the Board of Management and the Supervisory Board signed the new declaration of compliance on Corporate Governance; more detailed information on this can be found in the management report (pages 69 to 77). To conclude, the Board of Management gave an overview of the pension plans at Dürr in the United States.
15 MANAGEMENT AND STOCK Report of the Supervisory Board 11 CHANGES IN THE SUPERVISORY BOARD Aside from the election of a new Supervisory Board Chairman as a result of Mr. Dürr s departure, there were further changes to the Board and committees. At the annual general meeting on April 26, 2013, Dr. Herbert Müller was elected to the Supervisory Board as a new shareholder representative. On the same day, I took over from Mr. Dürr as Chairman of the Personnel Committee (pursuant to the articles of incorporation) as well as the Mediation Committee (by operation of law). In addition, the shareholder representatives elected me to succeed Mr. Dürr as Chairman of the Nominating Committee. In a letter dated February 27, 2014, Professor Dr. Norbert Loos announced his resignation from the Supervisory Board due to age, which will take effect at the end of the annual general meeting on April 30, Mr. Loos has been a member of the Supervisory Board since 1999 and Chairman of the Audit Committee since 2002, both of which have been heavily shaped by his in-depth knowledge. The Supervisory Board would like to thank Mr. Loos for his valuable contribution and long-term commitment to the Dürr Group. Following a proposal of the Nominating Committee, the Supervisory Board will propose to the annual general meeting that Professor Dr. Holger Hanselka be elected as Mr. Loos s successor. Mr. Hanselka was already a member of Dürr AG s Supervisory Board from 2006 to His professional situation now allows Mr. Hanselka once again to dedicate time to the Supervisory Board. As an expert in mechanical engineering, he can provide valuable ideas for the further development of the Dürr Group. WORK OF THE COMMITTEES The Personnel Committee, which is also the Executive Committee, met once in It was primarily concerned with issues relating to Management Board compensation; for example, it prepared the resolution for the adjustment of the fixed remuneration component as well as the parameters and upper limits of LTI payments, which was adopted in plenary session on March 12, Further information on this topic can be found in the compensation report, starting on page 74. In addition, the appointment of Mr. Dürr as Honorary Chairman of the Supervisory Board was based on an initiative of the Executive Committee. The Nominating Committee convened once during the reporting period. It recommended to the Supervisory Board on March 12, 2013, that Dr. Müller be nominated for election to the Supervisory Board at the annual general meeting. GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
16 12 MANAGEMENT AND STOCK Report of the Supervisory Board The Audit Committee held three meetings chaired by Professor Dr. Loos. It analyzed the quarterly, annual and consolidated financial statements and dealt with accounting matters. Further topics included currency hedging, pension obligations and impairment testing. The Audit Committee also proposed the key points for the external audit and monitored compliance with capital market regulations. The Committee reviewed and confirmed the efficiency of the internal control system, the risk management system and the internal auditing system; it also reviewed the compliance management system and the financial reporting process. The audit results were presented to the Supervisory Board on December 11, 2013, and discussed in plenary session. The Audit Committee submitted additional reports at the meetings held on March 12 and July 31, As in previous years, a meeting of the Mediation Committee was not required. AUDIT AND RATIFICATION OF THE ANNUAL FINANCIAL STATEMENTS Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft examined the annual financial statements, the consolidated financial statements, the management report and the Group management report for Dürr AG prepared by the Board of Management for the period ended December 31, 2013, and issued an unqualified auditors certificate. The annual financial statements, consolidated financial statements, management report and Group management report were submitted to the members of the Supervisory Board in good time. They were discussed in detail with the Board of Management and reviewed at the Supervisory Board meeting held to approve the financial statements on March 17, The same applies to the auditors reports, which were also submitted in due time. The auditors signing the audit certificate participated in that meeting and in the Audit Committee meeting held on the same day. They reported on their audit and were available for further explanations and discussions. At the Supervisory Board meeting held to approve the financial statements, the Chairman of the Audit Committee, Professor Dr. Loos, commented in detail on the audit documents, reported on the preliminary talks with the auditors and elaborated on the proposal to pay a dividend of 1.45 per share for In addition, he commented on the key points of the audit: the accounting for construction orders according to the percentage-of-completion method and the use of risk/opportunity check lists when accepting orders.
17 MANAGEMENT AND STOCK Report of the Supervisory Board 13 On the basis of the documents presented to it and the reports of the Audit Committee and the auditors, the Supervisory Board examined and accepted the annual financial statements, the consolidated financial statements, the management report and the Group management report. The Supervisory Board s own review found no cause for objection. The Supervisory Board approves the results of the audits of both sets of financial statements, agrees with the Board of Management in its assessment of the situation of the Group and Dürr AG and approves the annual financial statements and the consolidated financial statements prepared for the period ended December 31, The annual financial statements are thereby ratified. In light of the Audit Committee s recommendation and its own review, the Supervisory Board approves the Board of Management s proposal on the use of net retained profit. The Supervisory Board examined the report prepared by the Board of Management pursuant to Sec. 312 of the German Stock Corporation Act concerning relationships with associated enterprises (dependent company report) for the period from January 1 to April 26, The auditors issued the following unqualified certificate pursuant to Sec. 313 (3) of the German Stock Corporation Act: After examination and assessment in accordance with our professional duties, we confirm that: 1. the factual information given in the report is correct, 2. the consideration paid by the company in connection with transactions mentioned in the report was not unduly high. The Supervisory Board concurs with this audit result. According to the final result of the examination by the Supervisory Board, there are no objections to be raised against the declaration by the Board of Management at the end of the dependent company report. On behalf of all members of the Supervisory Board, I would like to thank the Board of Management, the heads of the business units, the employee representatives as well as all employees of the Dürr Group for their contribution to Dürr s success in The Supervisory Board would like to thank the shareholders of Dürr AG for the confidence they have placed in it and in the entire company. KLAUS EBERHARDT / Chairman of the Supervisory Board Bietigheim-Bissingen, March 17, 2014 GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
18 14 MANAGEMENT AND STOCK Dürr on the capital market Dürr on the capital market: Stock up almost twofold 1.3 PERFORMANCE OF DÜRR STOCK IN XETRA TRADING, JANUARY DECEMBER 2013 compared with development of the DAX, MDAX, and SDAX (indexed values) J F M A M J J A S O N D Dürr share DAX MDAX SDAX We pursue professional investor-relations activities to contribute to a fair valuation of Dürr stock. In an effort to justify investors confidence, we are committed to reliability, immediate and transparent communications and ongoing maintenance of contacts. We attach importance to presenting even complex matters in a readily understandable manner to enhance visibility for our shareholders. At the end of 2013, all standard valuation metrics (price/earnings, enterprise value/ebit, enterprise value/sales, price/book) were up slightly on the peer group average for the first time in years, underpinned by the Group s good earnings, its ability to generate high net cash inflows and the expected sustainability and stability of its future business performance. CONTINUED RALLY IN THE EQUITIES MARKETS IN 2013 Generally speaking, the equities markets were in very good condition in Although fears of an imminent end to central banks accommodative monetary policy triggered uncertainty in the second quarter, equities markets continued to benefit from copious liquidity, moderate company valuations as well as low interest rates and the relative lack of appeal of other asset classes. In addition, the leading macroeconomic indicators increasingly brightened in the second half of the year. While this pushed bond yields up slightly, the earnings outlook in the corporate sector improved at the same time. Yields on ten-year German government bonds climbed from their low of 1.5 % to around 2.1 % but were still trading at historically low levels. DÜRR STOCK ONE OF THE TOP PERFORMERS WITH GAINS OF 92 % After rising by just under 100 % in the previous year, Dürr stock advanced by 92 % in 2013, reaching a new all-time high of on January 15, Accordingly, it has risen almost eightfold since the beginning of 2010.
19 MANAGEMENT AND STOCK Dürr on the capital market 15 Dürr stock was one of the top ten performers across the DAX, MDAX, SDAX and TecDAX in 2013 again. The DAX and MDAX rose by 26 % and 39 %, respectively, while the indices in other countries largely matched their German counterparts, with the Dow Jones in New York rising by 27 %. With our increased market capitalization, we were able to reach new investor groups in the United Kingdom and the United States in particular. Many investors trust in the steady development of Dürr s earnings and in our cash generation potential. As well as this, they appreciate our strong position in the emerging markets and assume that we will continue to benefit from expanding production output in the automotive industry. The issue of bonus shares on a one-for-one basis on May 27, 2013, was also welcomed by market participants. In this way, the total number of shares issued by Dürr AG doubled from 17,300,520 to 34,601,040. There was no change in our shareholders stake or in the level of equity as the issue of shares was based on a capital increase from company funds. The new shares are dividend-entitled with retroactive effect from January 1, Looking ahead to 2014, analysts project a continued moderate rise in sales and earnings. This is reflected in the current consensus estimates in the Investor Relations section of WWW DIVIDEND TO BE INCREASED 28 % As we also want our shareholders to benefit from the sharp rise in earnings in 2013, the Board of Management and the Supervisory Board will be asking the shareholders to approve a 28 % increase in the dividend per share to 1.45 (previous year: 1.13) at the annual general meeting. This will result in a total distribution of 50.2 million, translating into a payout ratio of 36 % of consolidated net profit, up from 35 % in 2012 and 32 % in In this way, we are underscoring the continuity of our dividend policy, which aims for a payout ratio of 30 to 40 %. We advanced further up Deutsche Börse s joint ranking of SDAX and MDAX companies, which covers a total of 100 companies, reaching 27th (2012: 38th; 2011: 49th) position in market capitalization and moving to 28th (2012: 31st; 2011: 52nd) position in trading volumes at the end of KEY FIGURES FOR DÜRR STOCK Earnings per share Book value per share Cash flow per share Dividend per share 1.45² Payout ratio % 36² High Low Close Average daily trading volume (shares) 153, , ,216 Market capitalization (Dec. 31) million 2, , Number of shares 34,601,040 34,601,040 34,601,040 1 The figures for 2012 and 2011 have been adjusted to reflect the number of shares outstanding as of May 27, Dividend proposed to the annual general meeting GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
20 16 MANAGEMENT AND STOCK Dürr on the capital market In like-for-like terms, i.e. adjusted for the issue of the bonus shares, daily trading volumes of our stock averaged 153,000 in 2013, a 26 % decline over However, in euro terms, there was a 45 % increase in daily trading volumes to an average of 7.48 million. By comparison, XETRA trading volumes (in euros) of all shares traded at the German Stock Exchange remained flat in A member of the Deutsche Börse s high-quality Prime Standard segment, Dürr stock is traded in all German stock exchanges. More than 90 % of trading volumes are accounted for by the electronic XETRA trading system. There was a substantial increase in over-the-counter trading on various platforms in 2013 and these figures are not included in the trading volume figures for the German Stock Exchange. DÜRR ANNUAL REPORT RATED HIGHLY AGAIN Dürr consistently fares well in Manager Magazin s Best Annual Report rankings and was able to defend the previous year s fourth position in the MDAX category in In the rankings of all 160 DAX, MDAX, SDAX and TecDAX annual reports, we advanced by one position to 7th place. In the 2013 German Investor Relations Award competition, which was organized jointly by Thomson Reuters Extel Surveys, business weekly Wirtschaftswoche and the German Investor Relations Association (DIRK), we ranked at the top of the middle field in the MDAX segment. The BIRD 2013 survey, in which Börse Online magazine assesses the quality of investor relations activities, confirmed the second position which we had achieved in the MDAX segment in the previous year, placing us in the top ten for the cross-index aggregate evaluation. ANALYST RATINGS: 90 % BUY OR HOLD The stock s outstanding performance over the past few years and the valuation levels which have now been reached have prompted some analysts to approach Dürr stock with somewhat greater caution. That said, 90 % of the ratings are still Hold or Buy recommendations. In 2013, the number of analysts covering our stock rose from 17 to 20, the new additions being Mainfirst, Nord LB and UBS. 1.5 ANALYST RECOMMENDATIONS (FEBRUARY 28, 2014) 2 Sell 10 Hold 8 Buy Bankhaus Lampe Berenberg Bank Close Brothers Seydler Commerzbank DZ Bank Kepler Cheuvreux Mainfirst Montega Baader Bank BHF-Bank Deutsche Bank Hauck & Aufhäuser HSBC Trinkaus Macquarie Capital M.M. Warburg Nord LB Solventis Wertpapierhandelsbank UBS Bankhaus B. Metzler Landesbank Baden-Württemberg