Deutz Ag · XETR:DEZ
Deutz — Q3 2022 Earnings Presentation
24 slides from Deutz's earnings presentation, Nov 9, 2022
Slide 1: DEUTZ Results for Q1–Q3 2022
DEUTZ – Results for Q1–Q3 2022 – November 9, 2022
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 2022
Agenda Agenda Overview & highlights of Q1–Q3 2022 Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 3
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales Revenue Adjusted EBIT1 +0.4% to +€35.0 million to DEUTZ engines +19% to €1.52 billion +13% to €65.9 million Book-to-bill ratio for Q1–Q3 2022 €1.39 billion EBIT margin1 4.7% (+2.1pp) of 1.09 130,875 units Classic segment 6.9% (+2.9pp)
Slide 5: Powering Progress: four priority areas of action
Powering Progress: four priority areas of action PRIORITIES PERFORMANCE Addressing key overarching Improving commercial performance overall strategic topics and in individual areas POWERING PROGRESS POTENTIAL PASSION Improving technological capabilities Putting our values into practice, improving ou
Slide 6: Performance initiative: gradually passing on price increases
Performance initiative: gradually passing on price increases 8–12% increase in prices in Energy prices Raw material prices Logistics costs Product costs the new engine business in 2022 Process established to spread the burden of rising costs for raw materials, energy, and logistics in the short te
Slide 7: Progress with hydrogen strategy
Progress with hydrogen strategy DEUTZ joins HyCET research project consortium HyCET partners: BMW Group (lead partner), DEUTZ AG, DHL Freight GmbH, KEYOU GmbH, TotalEnergies Marketing Deutschland GmbH, and Volvo Group Aim of the research project: Development of trucks fitted with hydrogen intern
Slide 8: Reorganization of the Board of Management completed
Reorganization of the Board of Management completed Dr. Sebastian C. Schulte Timo Krutoff Dr. Ing. Petra Mayer Dr. Ing. Markus Müller Chief Executive Officer (CEO) Chief Financial Officer and Chief Operating Officer (COO) Chief Technology and Personnel Director (CFO)1 Sales Officer (CTO/CSO) 8 1 Joi
Slide 9: DEUTZ DAYS 2022
DEUTZ DAYS 2022 “We ensure the world keeps moving” E-DEUTZ 360V system JLG G5-18 A telehandler DEUTZ TCD 3.9 H2 genset EloTrail 30 KTEG ZE25 mini-excavator MULAG airport tow tractor DEUTZ PowerTree TCG 7.8 H2 DEUTZ presents innovative products, including conventional internal combustion engines and
Slide 10: Agenda: Q1–Q3 2022 in numbers
Agenda Agenda Q1–Q3 2022 in numbers Christian Ludwig | SVP Communications & IR 10
Slide 11: Results for Q1–Q3 2022
Results for Q1–Q3 2022 New orders Unit sales Revenue € million Units € million +0.4% +16.5% +19.0% 169,352 1,519.7 145,359 1,514.0 38,477 1,395.8 29,086 1,173.4 < Thereof Torqeedo Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 < Q1–Q3 2021 Q1–Q3 2022 New orders close to the prior-year level – book-to
Slide 12: Further successful expansion of the service business
Further successful expansion of the service business Revenue New orders Orders on hand € million € million € million +12.7% +14.7% +62.7% Our service target: 298.4 336.2 305.1 349.8 53.2 approx. €500 million 32.7 revenue in 2025 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 Particularly strong g
Slide 13: Revenue for Q1–Q3 2022 in detail
Revenue for Q1–Q3 2022 in detail Revenue breakdown by region Revenue breakdown by application segment Q1–Q3 2022 (Q1–Q3 2021) Q1–Q3 2022 (Q1–Q3 2021) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (4%) 38% (40%) 6% (7%) 29% (30%) €46.0 million €533.4 million €8
Slide 14: Profitability continues to improve
Profitability continues to improve Adjusted EBIT (€ million) Adjusted EBIT1 improved to €65.9 million in EBIT margin before exceptional items Q1–Q3 2022 (Q1–Q3 2021: €30.9 million) due to: − increased volume of business, bringing economies of scale +€9.2 million / +1.5pp qoq − cost savings − posit
Slide 15: 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 +18.2% +89.8% +47.8% 94.7 20.3% 5.0% 5.0% 374.3 70.0 15.7% 59.2 49.9 52.9 253.2 14.6 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Dec. 31, 2021 Sep. 30, 2022 R
Slide 16: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net debt € million € million € million - -€81.7 million €85.0 million -€138.0 million 67.9 15.2 -61.3 -79.7 -101.1 -13.8 -69.8 -217.7 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Dec. 31, 2021 Sep. 30, 2022 There
Slide 17: Solid balance sheet – equity ratio remains high
Solid balance sheet – equity ratio remains high Equity and equity ratio Equity ratio down slightly despite the rise in equity, because the € million balance sheet grew at a faster rate than equity due to the increase in current assets and current liabilities 1,509.6 1,290.1 An unused credit line
Slide 18: Results for Q1–Q3 2022 | Classic segment
Results for Q1–Q3 2022 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million +0.9% +12.6% +18.7% +103.7% 130,870 92.5 1,475.7 116,273 1,344.4 1,462.2 1,132.9 6.9% 45.4 4.0% Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021
Slide 19: Results for Q1–Q3 2022 | Green segment
Results for Q1–Q3 2022 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million -15.1% +32.3% +26.9% -77.0% 51.8 38,482 51.4 44.0 29,086 40.5 -36.5% -14.8 -51.0% -26.2 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 2022 Q1–Q3 2021 Q1–Q3 20
Slide 20: Agenda: Outlook
Agenda Agenda Outlook Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 20
Slide 21: Energy supply
Energy supply Preparations for potential gas rationing Stepping up the use of renewable energy Cologne-Porz site: Green electricity used at all DEUTZ AG sites since 2021 Preparations complete for switching the heating supply from gas to heating oil in the short term Cologne-Porz site: First ph
Slide 22: Guidance for 2022
Guidance for 2022 Guidance for 2022 Unit sales 175,000 to 185,000 DEUTZ engines1 Revenue €1.75 billion to €1.85 billion Adjusted EBIT margin 4.5% to 5.0% Free cash flow Negative low- to mid-double-digit million euro amount Free cash flow particularly affected by significant build-up of inventories
Slide 23: Any questions?
Thank you for your attention! Any questions?
Slide 24: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact 2022 annual report March 16, 2023 Christian Ludwig, CFA SVP Communications & IR Annual General Meeting April 27, 2023 +49 (0)221 822 3600 christian.ludwig@deutz.com Follow us: 2021 ONLINE ANNUAL REPORT DEUTZ 2021 – THE MAGAZINE includ