Drägerwerk AG & Co. KGaACapital Markets Presentation

October, 2014

2

Interim financial reports as well as preliminaries are not audited.

Disclaimer

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.

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.

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Content

1. Overview and highlights

2. Financial overview

3. Appendix

4

Overview and highlights

5

Our products must be absolutely

reliable at all times.

People trust us with their most

precious possession – their lives.

6

GDP World, nominal USD

Strong growth track record resulting from continuous innovation and market penetration

Dräger net sales development

Source: International Monetary Fund, World Economic Outlook Database

2nd Oil crisis

Stockmarketcrisis

War onIraq I

Crisis inMexico

Crisis inRussia

Stockmarket crisis

War onIraq II

Bankingcrisis

20%

35%19%

18%

8%

7

Dräger at a glance in financial year 2013

Net sales

Employees

EBITDA

EBIT13.334

EUR 270.3 million (11.4% margin)

EUR 200.8 million (8.5% margin)

EUR 2,374.2 million

Net sales by division1 Net sales by region

Medical division65%

Safety division 35%

OtherGermany

Asia/Pacific

Americas

Rest of Europe

1 Net sales third parties

8

� #1 in Europe� #2 in the US market

for anesthesia devices and vaporizers

� #1 in Europe� #3 in the US market

for ventilators

� #2 worldwide� #1 in Europe

for incubators and phototherapy

� #3 worldwide for monitoring� Infinity Acute Care System � IT network solutions� Telemetry and IT solutions

� Integrated workplace solutions

� Project business� Gas management,

architectural systems � Medical lights

� Training and service� Consumables and

accessories� Multivendor services

Anesthesiology

Respiratory Care

Thermoregulation

Patient Monitoring & Clinical Data Management

Workplace Infrastructure

Hospital Consumables & Service

Intensive Care Operating Room Neonatal CareHospital wide

Solutions

�� ��

�� �� �� ��

�� ��

�� �� �� ��

��

�� �� �� ��

Note: Market position based on Dräger‘s market knowledge and its own assessment of market position; positions ranked according to net sales, for monitoring depending on market definition.

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Fire Fighting

Plant Safety Gas Management

Shutdown Management

Occupational Health & Safety

Train & Prepare

Service Products & Solutions

Oil & Gas Chemical Mining Fire Service

�� �� ��

�� �� �� ��

�� �� �� ��

�� �� �� ��

�� ��

�� �� ��� #1 position worldwide

and in Europe � #3 in the US market

� Breathing protection and air purifying respiratory protection

� Project business� Customer specific

solutions� Shutdown- and Safety-

management

� #2 worldwide in integrated breathing protection for fire departments

� Training� Dräger Academy � mobile and stationary

firefighting training systems

� Spareparts and consumables business

� Classical-, Multivendor-and Remote-Service

��

Note: Market positions based on Dräger‘s market knowledge and its own assessment of market position; positions ranked according to net sales.

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Medical and safety technology providing long-term g rowth prospects in developed and emerging markets

Hospital

Attractive growth prospects in sizeable markets …

… in Europe and the US …

… as well as in emerging markets

Oil&Gas Chemical Mining FireService

� Average expected annual market growth for the global medical equipment market significantly exceeding growth in many other sectors

� Strong growth prospects in both developed and emerging markets

� Very diversified markets with numerous product and service offerings

� Attractive growth prospects for target sectors (e.g. industry) and growing safety investments

� Rapidly aging population and consequently increasing healthcare expenditure

� Increasing demand for medical equipment to improve clinical workflows and efficiency

� Old equipment with limited functionality; requires significant investments into new equipment

� Increasingly stricter safety regulations� Rising environmental awareness� Improved outlook for target markets

� Strong growth of GDP and population resulting in a demand for improved medical services

� Political benefits from investments in health care sector

� Increasingly higher safety standards� Increasing industrial hygiene awareness� Strong growth of key customer sectors

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Management of innovation rate through continuous improvements in quality and R&D processes

Expansion of market positions in attractive markets . Special focus on profitable growth in developing co untries

New marketing and sales organization will improve growth and profitability

Expansion of service and consumables business

1

2

3

4

Cost management5

Strategy for profitable growth

12

1

Strong R&D focus Innovations to enhance future growth (examples)

Pulmovista

Enables literally looking into lungs during ventilation; based on Electric

Impedance Tomography (EIT)

Perseus A500

Anesthesia device in modern workplace

design and full integration of IACS

Monitoring

� Approximately 1,400 employees in R&D around the globe

� EUR 206 million spent for R&D activities in 2013 (8.5 % of net sales)

� Tradition of innovation and quality leadership

� Very close collaboration with customers to develop new and improve existing products

� R&D focus on integration of products and services to provide solutions which support customer workflows

� R&D strives to leverage advantage of using same technology for different market segments and products (e.g. in gas sensors)

� Technological competency and high quality standards result in leading market positions and high barriers to entry

Merlin Tablet

Telemetric system to monitor the air

supplies of the fire fighting teams

breathing apparatuses

Technology and innovation leadership to drive profi table growth

13

Innovation rate to manage power of innovation

Improvement of Innovation

process

� Continued development of new innovative products and introduction of product upgrades� Increasing net sales share of new products� Continued strong investments in R&D

1

Share on new products and upgrades medical division1

1 Launched in the last 3 years; products are regarded as new, if they enable Dräger to either enter a new market segment or if products are regarded as completely new according to Dräger‘scustomers and Dräger‘s sales force. Upgrades are those products, which serve existing Dräger markets, but their functionality is perceived as significantly enhanced by Dräger‘s customers and Dräger‘s sales force.

New productsUpgrades

Net sales

26%

26%15% 23%

14%11%7%

2009 2010 2011 20120%

5%

10%

15%

20%

25%

30%

35%

40%

45%

10%

33%

37%

33%29%

1

28%

2013

6%

34%

26%

H1/14

8%

34%

14

Investments in profitable

growth in developing countries

2

� Focus on the specific needs of customer in developing countries� Identify growth potential in strong growing markets like China, Brazil and India� Capitalize on the significant investments into the Sales & Service infrastructure and

specific market knowledge, especially in our Regions Asia / Pacific, Central- and South-America

� Enhance engagement with partners in developing countries to expand local presence with R&D, manufacturing, sales and after sales business

2

Net sales 2013

Developed Markets

76 %

Newly industrialized

countries24 %

Infrastructure development

� Expand Production in Shanghai

� Opening of Design Center in India

� Set-up of R&D in China

Focused product range

Strengthen sales

� Opening and expansion of regional sales headquarters in Dubai und Panama

� Over-proportional investment in Sales & Service infrastructure in developing countries

Fabius Plus XLVista 120

Exploit growth potentials in developing countries

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Oil &Gas

Chemical Mining FireServices

IC OR NC HWS

Hospital*

Focused Market Segments

Customers that use Dräger products integrated into significant parts of their value c hain

Solution offerings involving various Dräger’s product areas along the customers value chain

Manage R&D process and product portfolio to increase customer satisfaction along value chain

Application Driven Markets

Impair-ment

Diving Steel Shipping

Customers that only use Dräger products in isolated or low-attention applications

Increase market penetration via new sales channels and marketing approaches

Improve capitalization of R&D investment Leverage existing product portfolio

more than200 others

Complete Solution ProviderComplete Solution Provider Best of Breed ProviderBest of Breed Provider

…

3 Market Segment View supports the identification of new potentials

* OR = Operating Room, IC = Intensive Care, NC = Neonatal Care, HWS = Hospital wide solutions

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Further expansion of service and

consumables business

4

Service- and consumables business a clear focus of o ur Sales activities

4

Dräger Service Dräger Consumables

� Functionalities with added value, e.g. optimizing workflow with RFID-based communication between consumables part and therapy machine

� Dräger quality to improve hygienic standards

� Dräger value add especially in development of consumables. Production usually via suppliers

� Partly proprietary consumable products, e.g. Dräger-Tubes

� Globally over 3,000 service technicians

� Fast and reliable service (repairs and spare parts) is a critical factor for customers

� Dräger Service technicians important for customer loyalty

� Efficient service solutions via remote service

� Multi Vendor Service

� Administration and Service-Documentation of customers equipment pool

� Capitalize on large installed base to expand after sales business� Continued expansion of service and spare parts offering� Focus on combined sale of equipment and after sales contracts

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Cost Management

� Investing into global ERP System to improve steering of business

� Global Sourcing and focusing on strategic supplier partnerships

� Optimizing the global production „Foot-print“ – move labor intensive production to lower cost countries

� Improving material flow through Master-Plant in Lübeck and local value add

� Implementing „One Dräger“ – Integration of back-office processes in the headoffice and in the global sales- und service organization

� Improving quality and processes to reduce waranty cost and cost of reworking as a result of returns

5

Profitable growth through clear cost management5

18

Financial overview

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Profit & Loss of Dräger Group

2011 2012 9M 2013 9M 2014

million € million € million € million €

Net Sales 2,255.8 2,373.5 1,656.0 1,664.9 0.5 1

% growth 3.6% 5.2% 0.6% 0.5%% growth (currency adjusted) 4.4% 2.5% 3.2% 3.0%

Gross Profit 1,108.3 1,167.0 811.7 773.4 -4.7 Gross margin 49.1% 49.2% 49.0% 46.5%

R&D -160.5 -197.3 -151.0 -155.4 -2.9 % of Net Sales -7.1% -8.3% -9.1% -9.3%

SG&A -724.8 -735.4 -546.1 -542.5 0.7 % of Net Sales -32.1% -31.0% -33.0% -32.6%

Functional Expenses -894.5 -935.4 -697.7 -700.3 -0.4 % of Net Sales -39.7% -39.4% -42.1% -42.1%

EBITDA 274.6 296.0 162.2 135.8 -16.3 EBITDA Margin 12.2% 12.5% 9.8% 8.2%

EBIT 213.8 230.3 111.3 81.2 -27.0 EBIT Margin 9.5% 9.7% 6.7% 4.9%

Net Profit 125.1 135.7 62.9 42.5 -32.4

DVA 134.6 150.5 119.9 76.2 -36.4

1 Currency adjusted 9M: order intake +1.9%, orders on hand -2.9%, net sales +3.0%

2013

million €

113.9

-738.4 -31.1%

-942.2 -39.7%

270.3 11.4%

8.5%

119.9

48.3%

-201.5

200.8

-8.5%

2,374.2 0.0%3.1%

1,147.6

Change

%

11.9%12.9 %

1,558.0

1,200

1,250

185.3

0

50

100

150

200

250

300

350

2011 2012 2013

1,484.5

191.8

1,500

20

97.3

0

50

100

150

200

250

300

20132011 2012

849.3

700

750

800

11.5 %9.5 %

76.1

802.7850

Medical division (EUR million)

Umsatz EBIT

Safety division (EUR million)

% EBIT Marge

Business Development Medical and Safety Division

153.3

89.2

Key figures

21

2011 2012 9M 2013 9M 2014

million € million € million € million €

Cashflow from operating activities 161.7 176.8 50.2 71.0 41.6

Investments 78.1 78.2 67.2 84.1 25.2

Cash and cash equivalents1 412.3 332.4 236.4 175.4 -25.8

Net financial debt1 39.8 56.8 88.8 118.9 34.0

Net financial debt 1 /EBITDA 2 0.1 0.2 0.3 0.5

Capital employed 1 880.0 901.9 970.4 1,112.9 14.7

ROCE (EBIT 2 /Capital employed 1) 24.3% 25.5% 21.0% 15.3%

Net Working Capital1 362.8 404.1 470.6 541.3 15.0

DVA 134.6 150.5 119.9 76.2 -36.4

Headcount1 11,924 12,516 13,170 13,698 4.0

1 Values at due date2 EBITDA and accordingly EBIT of the last twelve months

232.1

110.0 0.4

1,052.9

520.3

113.9

13,334

19.1%

68.3

110.6

2013

million €

Change

%

Outlook and mid-term perspective

22

Net sales

EBIT margin

2013 2014e

4.5% - 6.5%(incl. currency effects)

+0.0%(currency adjusted +3.1%)

8.5%

Gross Margin down year on year 48.3%

Cash flow conversion

70% - 90% of EBIT

34% of EBIT

Equity ratio 41% – 44% 39.5%

+2.0% - 4.0%(currency adjusted)1

1 based on average FX 2013

Diversity at Dräger

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Appendix

Stefan DrägerCEO

Dr. Herbert FehreckeCPQO

Gert-Hartwig Lescow CFO

Toni Schrofner CIO

Executive Board

Executive Board of Drägerwerk Verwaltungs AG

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Shareholder structure

ShareholdingCommon shares

67.2 %

28.5%

4.3%

Dr. Heinrich Dräger GmbH

Free float

Members of the Dräger family

10,160,000 common shares (28.5 % free float)6,650,000 preferred shares (100.0 % free float)

ShareholdingDr. Heinrich Dräger GmbH

Stefan Dräger GmbH

Dräger Foundation

Successors of Dr. Heinrich Dräger

58.7%

23.2%

18.1%

2,065.0

1,347.8

Consolidated balance sheet

€ million

Change31 Dec 201331 Dec 2012Assets

-3.01,389.8Current assets

2.6

6.8

8.9

-30.2

372.3

640.8

102.6

232.1

362.9

600.3

94.2

332.4

Inventories

Trade receivables

Other current assets

Cash and cash equivalents

1.0717.2710.4Non-current assets

0.2

11.6

-17.4

283.0

310.8

123.4

282.6

278.4

149.4

Intangible assets

Property, plant and equipment

Other non-current assets

%€ million

-1.72,100.1Total assets

27

1 Previous year’s figures were adjusted retrospectively due to first-time adoption of IAS 19 (2011) in accordance with IAS 8.

2,065.0

20.0

217.2

252.3

82.2

Consolidated balance sheet

€ million

Change31 Dec 201331 Dec 2012Equity and liabilities

-10.7677.4758.3Current liabilities

-17.0

-22.8

1.9

-8.5

186.4

80.5

172.4

238.1

224.6

104.3

169.2

260.3

-6.6571.6612.2Non-current liabilities

4.2

-5.5

-10.8

2.5

19.2

229.8

282.9

80.2

Liabilities from participation certificates

Provisions for pensions and similar obligations

Non-current interest-bearing loans

Other non-current liabilities

11.8816.0729.7Equity

%€ million

-1.72,100.1Total equity and liabilities

Current provisions

Current loans and liabilities to banks

Trade payables

Other current liabilities

1 Previous year’s figures were adjusted retrospectively due to first-time adoption of IAS 19 (2011) in accordance with IAS 8.

28

Business developmentMedical division

29

2011 2012 9M 2013 9M 2014

million € million € million € million €

Order Intake 1,518.8 1,558.4 1,558.6 1,141.3 1,136.4 -0.4 1

Order on hand 319.8 310.5 309.8 377.2 387.5 2.7 1

Net Sales 1,484.5 1,558.0 1,544.7 1,064.1 1,067.3 0.3 1

EBIT 191.8 185.3 153.3 77.2 45.9 -40.6

EBIT Margin 12.9% 11.9% 9.9% 7.3% 4.3%

DVA 144.0 135.2 97.5 109.6 63.1 -42.4

1 Currency adjusted 9M: order intake +2.3%, orders on hand +0.8%, net sales +2.9%

2013

million €

Change

%

30

Business developmentSafety division

2011 2012 9M 2013 9M 2014

million € million € million € million €

Order Intake 805.0 880.8 859.8 639.6 637.6 -0.3 1

Order on hand 142.8 173.7 167.1 195.5 179.2 -8.3 1

Net Sales 802.7 849.3 864.4 616.4 626.3 1.6 1

EBIT 76.1 97.3 89.2 57.0 53.6 -6.1

EBIT Margin 9.5% 11.5% 10.3% 9.3% 8.6%

DVA 57.5 79.0 69.3 66.7 64.1 -3.9

1 Currency adjusted 9M: order intake +2.0%, orders on hand -9.1%, net sales +3.8%.

2013

million € %

Change

Germany

Rest of Europe

AmericasAsia/Pacific

Other

vs. PY1 vs. PY1€ million€ million

Germany

Rest of Europe

AmericasAsia/Pacific

Other

Order intaketwelve months 2013

Net sales twelve months 2013

1 Currency adjusted 1 Currency adjusted

Regional split of order intake and net sales

8%20%

18%

35%20%

8%20%

18%

35%19%

467.5

828.6

466.0423.1

199.5

-8.9%

-0.7%

+6.8%+9.8%

+19.8%

2,384.6 +2.2%

472.8

836.4

459.7423.4

181.9

+2.2%

-1.8%

+4.5%+12.8%

+4.3%

2,374.2 +3.1%

Functional expenses

32

2011 2012 9M 2013 9M 2014

million € million € million € million €

R&D -160.5 -197.3 -151.0 -155.4 2.9 % of Net Sales -7.1% -8.3% -9.1% -9.3%

SG&A -724.8 -735.4 -546.1 -542.5 -0.7 % of Net Sales -32.1% -31.0% -33.0% -32.6%

Functional Expenses total -894.5 -935.4 -697.7 -700.3 0.4 % of Net Sales -39.7% -39.4% -42.1% -42.1%

2013

-8.5%

-738.4 -31.1%

-942.2 -39.7%

million €

Change

%

-201.5

33

Cash-flow statement

2011 2012 9M 2013 9M 2014million € million € million € million €

Group net profit 125.1 135.0 119.9 62.9 42.5 -32.4

Change in inventories 19.2 -31.6 -36.5 -73.9 -50.8 31.3

Change in accounts receivables -52.4 -15.2 -69.5 66.4 81.7 23.1

Change in accounts payables -0.2 -2.5 6.4 -21.5 -23.1 -7.5

Depreciation and amortization 61.6 65.8 69.0 50.6 54.5 7.8

Other operating cash flow items 8.4 25.2 -21.0 -34.3 -33.8 1.3

Operating cash flow 161.7 176.8 68.3 50.2 71.0 41.6

Investing cash flow -67.4 -65.5 -86.5 -54.3 -72.8 -34.1

Free cash flow 94.3 111.3 -18.2 -4.1 -1.8 57.0

Financing cash flow -4.6 -192.0 -70.8 -83.5 -60.8 27.1

Change in cash 1 89.7 -80.7 -88.9 -87.6 -62.6 28.5

Cash and cash equivalents 2 412.3 332.4 232.1 236.4 175.4 -25.8

1 Change in cash and cash equivalents, i.e. without any effect of exchange rates2 Values at due date

2013million €

Change%

34

March 11, 2015 - Accounts press conference, Hamburg- Analysts meeting, Frankfurt

April 29, 2015 - Report for the first three months 2014 - Conference call, Lübeck

April 30, 2015 - Annual shareholders' meeting, Lübeck

July 30, 2015 - Report for the first six months 2014 - Conference call, Lübeck

November 5, 2015 - Report for the first nine months 2014 - Conference call, Lübeck

Financial calendar

35

Melanie Kamann Thomas FischlerCorporate Communications Investor Relations

Drägerwerk AG & Co. KGaA Drägerwerk AG & Co. KGaAMoislinger Allee 53−55 Moislinger Allee 53−5523558 Lübeck, Germany 23558 Lübeck, Germany

Tel +49 451 882-3998 Tel +49 451 882-2685 Fax +49 451 882-3944 Fax +49 451 882-3296

Mobile +49 170 8558152 Mobile +49 151 12245295

melanie.kamann@draeger.com thomas.fischler@draeger.comwww.draeger.com www.draeger.com

Contact