Deutz Ag · XETR:DEZ
Deutz — Q3 2021 Earnings Presentation
27 slides from Deutz's earnings presentation, Nov 10, 2021
Slide 1: DEUTZ – Results for Q1–Q3 2021
DEUTZ – Results for Q1–Q3 2021 – November 10, 2021
Slide 2: 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.
Slide 3: Agenda: Overview & highlights of Q1–Q3 2021
Agenda Agenda Overview & highlights of Q1–Q3 2021 Dr. Frank Hiller | CEO 3
Slide 4: Operational and strategic highlights
Operational and strategic highlights ▪ Willingness to invest remains high in relevant customer industries: double-digit percentage increases in new orders, unit sales, and revenue ▪ Orders on hand more than double to over €0.6 billion ▪ Sharp rise in the EBIT margin before exceptional items; restruc
Slide 5: Expansion of the profitable service business remains on course
Expansion of the profitable service business remains on course Revenue New orders Orders on hand € million € million € million +16.2% +18.6% +53.5% Our service target: approx. 298,4 305,1 256,9 257,3 €400 million 32,7 21,3 revenue in 2021 Q1–Q3 Q1–Q3 Q1–Q3 Q1–Q3 Q1–Q3 Q1–Q3 2020 2021 2020 2021 2020
Slide 6: Progress with hydrogen strategy
Progress with hydrogen strategy Pilot project for TCG 7.8 H2 with regional utility company ▪ Stationary equipment for power generation planned with RheinEnergie as the first pilot application for the TCG 7.8 H2 ▪ Hydrogen engine complies with the CO2 threshold set by the EU for zero emissions ▪ Full
Slide 7: Strategic partnership with Blue World Technologies
Strategic partnership with Blue World Technologies ▪ Developer and manufacturer of fuel cell components and systems, including for stationary applications (gensets) and the automotive sector (cars and commercial vehicles) ▪ Fuel cells primarily run on methanol, which is a renewable, liquid fuel ▪ Ke
Slide 8: China business faced with short-term market weakness
China business faced with short-term market weakness Business performance of SANY JV Q1–Q3 2021: Demand adversely affected by: ▪ Unit sales of approx. 18,300 engines ▪ Temporary power outages ▪ Revenue of approx. €158 million ▪ Strict restrictions to contain the spread of ▪ Contribution to earnings
Slide 9: Agenda: Q1–Q3 2021 in numbers
Agenda Agenda Q1–Q3 2021 in numbers Dr. Sebastian C. Schulte | CFO 9
Slide 10: Results for Q1–Q3 2021
Results for Q1–Q3 2021 New orders Unit sales Revenue € million Units € million +62.2% +33.9% +26.4% 1.514,0 145,359 Over 100 1,173.4 108,559 29,086 928,2 933,6 24,057 < Thereof effects of spending < brought forward Thereof Torqeedo Q1–Q3 2020 Q1–Q3 2021 < Q1–Q3 2020 Q1–Q3 2021 < Q1–Q3 2020 Q1–Q3 202
Slide 11: Revenue in detail
Revenue in detail Revenue breakdown by region Revenue breakdown by application segment Q1–Q3 2021 (Q1–Q3 2020) Q1–Q3 2021 (Q1–Q3 2020) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 4% (4%) 40% (41%) 7% (8%) 30% (29%) €41.7 million €473.9 million €85.2 million €35
Slide 12: Continued improvement in earnings
Continued improvement in earnings Operating profit (EBIT before exceptional items) (€ million) ▪ Operating profit improves to €30.9 million in Q1–Q3 20211 EBIT margin before exceptional items (Q1–Q3 2020: operating loss of €65.6 million) due to: − absence of payments to suppliers going through insol
Slide 13: R&D spending, capital expenditure, and working capital
R&D spending, capital expenditure, and working capital Net R&D spending1 Capital expenditure1,2 Working capital € million € million € million -10.0% -10.6% +11.2% 7.1% 5.0% 65,8 18.1% 17.0% 59,2 55.8 49.9 261,4 17.4 235.0 14.6 Q1–Q3 2020 Q1–Q3 2021 Q1–Q3 2020 Q1–Q3 2021 Dec. 31, 2020 Sep. 30, 2021 R
Slide 14: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow 1 Net financial position € million € million € million +€87.3 million +€94.0 million 67,9 15,2 -58.0 -62.5 -19,4 -78,8 -83.8 -83.1 Q1–Q3 2020 Q1–Q3 2021 Q1–Q3 2020 Q1–Q3 2021 Dec. 31, 2020 Sep. 30, 2021 Thereof l
Slide 15: Sufficient medium- and long-term funding options
Sufficient medium- and long-term funding options Equity and equity ratio Syndicated credit lines Long-term bank loans € million € million / term € million / repayment profile 1,259.1 1.180,5 235 45.3% 45.0% 535,2 567,1 10,3 5,8 0,0 35 Dec. 31, 2020 Sep. 30, 2021 1 to 5 years up to 1 year 1 to 5 year
Slide 16: Agenda: Guidance
Agenda Agenda Guidance Dr. Frank Hiller | CEO 16
Slide 17: Group guidance for 2021 and medium-term targets for 2023/2024
Group guidance for 2021 and medium-term targets for 2023/2024 Guidance for 2021 Unit sales 155,000 to 170,000 DEUTZ engines1 (previously 140,000 to 155,000) Revenue €1.6 billion to €1.7 billion (previously €1.5 billion to €1.6 billion) EBIT margin before exceptional items 2.0–3.0% (previously 1.0–2.
Slide 18: Annex
DEUTZ Annex
Slide 19: Segment overview for Q1–Q3 2021
Segment overview for Q1–Q3 2021 New orders Q1–Q3 Q1–Q3 YoY Revenue Q1–Q3 Q1–Q3 YoY € million 2021 2020 change € million 2021 2020 change (%) (%) DEUTZ Compact Engines 1,192.1 660.4 +80.5 DEUTZ Compact Engines 896.7 668.6 +34.1 DEUTZ Customized Solutions 270.1 241.3 +11.9 DEUTZ Customized Solutions 2
Slide 20: Segment overview for Q3 2021
Segment overview for Q3 2021 New orders Q3 2021 Q3 2020 YoY Revenue Q3 2021 Q3 2020 YoY € million change € million change (%) (%) DEUTZ Compact Engines 383.9 220.5 +74.1 DEUTZ Compact Engines 307.2 214.9 +43.0 DEUTZ Customized Solutions 87.8 75.9 +15.7 DEUTZ Customized Solutions 82.5 80.8 +2.1 Other
Slide 21: Income statement
Income statement € million Q3 2021 Q3 2020 Q1–Q3 2021 Q1–Q3 2020 Revenue 403.2 308.2 1,173.4 928.2 Cost of sales -330.7 -263.3 -961.7 -798.1 Research and development costs -22.9 -23.7 -68.8 -73.3 Selling expenses -24.3 -22.8 -73.8 -74.1 General and administrative expenses -15.2 -12.0 -45.4 -36.3 Oth
Slide 22: Balance sheet: assets
Balance sheet: assets € million Sep. 30, 2021 Dec. 31, 2020 Property, plant and equipment 362.3 361.7 Intangible assets 184.9 197.2 Equity-accounted investments 55.5 50.3 Other financial assets 4.7 4.4 Non-current assets (before deferred tax assets) 607.4 613.6 Deferred tax assets 79.8 74.2 Non-curr
Slide 23: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities € million Sep. 30, 2021 Dec. 31, 2020 Issued capital 309.0 309.0 Additional paid-in capital 28.8 28.8 Other reserves 1.0 -3.9 Retained earnings and accumulated income 228.3 201.1 Equity attributable to shareholders of DEUTZ AG 567.1 535.0 Non-controlling interes
Slide 24: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1–Q3 Q1–Q3 2021 2020 EBIT 27.8 -103.4 Cash flow from operating activities 67.9 -19.4 Capital expenditure on intangible assets, property, plant and equipment and -49.3 -56.2 investments Proceeds from the sale of non-current assets 0.2 0.2 Cash flow from inve
Slide 25: Questions & answers
Questions & answers 25
Slide 26: Thank you for your attention!
Thank you for your attention! 26
Slide 27: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact Capital markets day November 17, 2021 Christian Ludwig, CFA SVP Communications & Investor Relations 2021 annual report March 17, 2022 +49 (0)221 822 3600 2022 Annual General Meeting April 28, 2022 christian.ludwig@deutz.com Q1 2022 qu