Deutz Ag · XETR:DEZ
Deutz — Investor Presentation (May 2012)
21 slides from Deutz's investor presentation, May 2012
Slide 1: DEUTZ AG Investor Presentation – powering success
DEUTZ AG Investor Presentation – powering success May 2012
Slide 2: Agenda
Agenda DEUTZ at a glance Strategy & investment rationale Financials Outlook
Slide 3: DEUTZ – at a glance
DEUTZ – at a glance Innovations since over 145 years Global player in non-captive market Independent manufacturer of diesel engines, Engineering and manufacturing company product range from 25 to 520 kW with strong expertise as system integrator Founded in 1864 and since then synonymous for
Slide 4: DEUTZ Group
DEUTZ Group DEUTZ Group DEUTZ Compact Engines DEUTZ Customised Solutions Liquid-cooled engines of up to 8 litre cubic capacity Air-cooled engines for on-road, off-road and marine for on- and off-road applications applications Large number of modular approaches to design Liquid-cooled engines
Slide 5: Product portfolio: ready for the next emissions level
Product portfolio: ready for the next emissions level Engines for Tier 4 emissions standards Focus on mobile machinery and agricultural segment Award winning new engine Mobile Agricultural Stationary Automotive (TC)D 2.9 Very compact engine minimizes Machinery Machinery Equipment installation ef
Slide 6: DEUTZ market share by application
DEUTZ market share by application Typical Markets will benefit from DEUTZ DEUTZ Segment macro trends Market Share Market Pos. Main Competitor Application Construction Equipment, Mobile Ground Support Cummins, Kubota, Machinery Equipment, Material 21% 1 Perkins, Yanmar Handling Equipment, Mining Equi
Slide 7: Revenue split
Revenue split Revenue Split by Application, 2011(1) Revenue Split by Region, 2011(2) (2010) (2010) Mobile Other 5% Machinery 35% Africa/Middle East 6% Europe (excl. Germany) 56% €76.0 million €529.4 million €87.8 million (€73.0 million) €860.6 million (€50.3 million) (€369.6 million) (€682.1 million
Slide 8: Agenda
Agenda DEUTZ at a glance Strategy & investment rationale Financials Outlook
Slide 9: Cost Reduction & Margin Increase – DEUTZ Investment Attractions
Cost Reduction & Margin Increase DEUTZ Investment Attractions Permanent cost reduction of €85 million realized (MOVE) Significant Breakeven volume reduced significantly Cost Reduction Complete restructuring of business processes towards smart SME Top line project will lead to additional €35
Slide 10: EBIT margin (before one-offs) – DEUTZ Investment Attractions (cont’d)
EBIT margin (before one-offs) DEUTZ Investment Attractions (cont’d) 10% Meaningful reduction of fixed costs 6.0% ~6% 6-7% and breakeven level 3.5% Focus on profitable growth 1.5% Strategic growth projects burdening the EBIT margin in 2012 and 2013 Additional potential for efficiency enhancem
Slide 11: Multiple Growth Opportunities – Leading to Economies of Scale
Multiple Growth Opportunities – Leading to Economies of Scale DEUTZ Investment Attractions (cont’d) Urbanization driving infrastructure investments Macro Trend Growing world population and living standards requiring more efficient agriculture Globalization and mobility leading to more transpor
Slide 12: DEUTZ Engine (Shandong) Co., Ltd.
DEUTZ Engine (Shandong) Co., Ltd. DEUTZ Investment Attractions (cont’d) DEUTZ Start of Partner Product range Status participation operations Engines < 4 Founding documents DEUTZ Engine Shandong litre for mobile signed January 2012 Changlin (Shandong) Machinery 70 % machinery and 2013 agricultural
Slide 13: Long-term cooperation with Volvo
Long-term cooperation with Volvo DEUTZ Investment Attractions (cont’d) DEUTZ Start of Partner Product range Status participation operations Memorandum of Medium-duty understanding Production JV engines for [end of 2013 / AB Volvo >50 % Any implementation in China non-road early 2014] application
Slide 14: Strategic Programme for 2011–2020 – Fit for Future
Strategic Programme for 2011–2020 Fit for Future Profitable Growth Product Leadership Operational Excellence Expansion of the market Supply of integrated system Process Company position in the BRIC countries solutions High Performance Top-class sales organisation Redesign of the va
Slide 15: Agenda
Agenda DEUTZ at a glance Strategy & investment rationale Financials Outlook
Slide 16: Sales Figures and EBIT of 2011
Sales Figures and EBIT of 2011 Order Intake Unit Sales Revenue EBIT before one-offs(1) EBIT-Margin (1) EBIT-Margin € million units € million 12.5% 37.5% 28.6% 3.5% 6.0% € million 1,529.0 1,479.3 230,598 1,315.0 26,437 330.0 305.1 1,189.1 324.3 167,680 270.1 17,501 91.2 1.174.2 204,161 1,199.0 990.7
Slide 17: Overview Key Financials 2011
Overview Key Financials 2011 € million 2011 2010 Change (%) Revenue 1,529.0 1,189.1 28.6 EBITDA before one-off items(1) 160.3 112.6 42.4 EBIT before one-off items(1) 91.2 42.2 >100.0 EBIT margin before one-off items (%)(1) 6.0 3.5 -- Net income 75.5 -15.9 -- Total assets 1,099.0 1,041.7 5.5 Equity 4
Slide 18: Agenda
Agenda DEUTZ at a glance Strategy & investment rationale Financials Outlook
Slide 19: Financial outlook
Financial outlook Outlook for 2012 Revenue Approx. €1.5 billion EBIT margin Approx. 6.0 % Research and Development (R&D) Decline by about 25 % vs. 2011 Capex (excl. R&D) Approx. €60 million Free cash flow Positive territory Working capital ratio Sustainable below 13 % Equity ratio Above 40 % Outlook
Slide 20: Financial calendar / Contact
Financial calendar Contact 10 May 2012 Q1 results Christian Krupp Senior VP Finance and Investor Relations 9 Aug 2012 H1 results Ottostrasse 1 8 Nov 2012 Q3 results 51149 Cologne (Porz-Eil), Germany 19 Mar 2013 FY 2012 results 30 Apr 2013 AGM Tel.: +49 (0) 221 822 5400 Fax: +49 (0) 221 822 15 5400 E
Slide 21: Disclaimer
Disclaimer Unless stated otherwise, all the figures given in this presentation refer to continuing operations. The details given in this document are based on the information available at the time it was prepared. This presents the risk that actual figures may differ from forward-looking statements.