Deutz Ag · XETR:DEZ
Deutz — FY2024 Earnings Presentation
38 slides from Deutz's earnings presentation, Mar 20, 2025
Slide 1: FY 2024 results
DEUTZ FY 2024 results March 20, 2025
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 2024 & current development
AGENDA Overview 2024 & current development Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 3 DEUTZ Geschäftszahlen FY 2024 | 20. März 2025
Slide 4: FY 2024: Staying the course in a difficult economic environment
FY 2024: Staying the course in a difficult economic environment New orders Revenue EBIT margin1 FCF2 €1,827 million €1,814 million 4.2% €30.0 million +4.4% year-on-year, -12.1% year-on-year -2.8pp year-on-year, -58.8% year-on-year, driven by positive due to significant cyclical DEUTZ remains profita
Slide 5: Americas and service business stabilize financial year 2024
Americas and service business stabilize financial year 2024 Revenue1 by region (in € million) 2,063 CAGR ▪ Challenging market environment in 2024: in 1,892 2022-2024 1,814 particular due to high inventories on customer side and weak demand for agricultural and construction machinery 61% 62% 58% EMEA
Slide 6: Results in line with the adjusted guidance
Results in line with the adjusted guidance Adjusted guidance FY 2024 20241 Less than 150,000 Unit sales 142,907 units units Revenue Around €1.8 billion €1.814 billion Adjusted EBIT 4.0 to 5.0% 4.2% margin2 Free cash flow3 At least balanced €30.0 million 6 1 As of October 3, 2024. 2 Before exceptiona
Slide 7: What we take away from 2024
What we take away from 2024 We are on the right track Growth and cost reduction go with Dual+ hand in hand ▪ Diversification cushions market downturns – ▪ Growth and investment for future prospects especially service, Americas and energy business and 2030 ambitions ▪ Portfolio measures take effect –
Slide 8: Positive effects of Dual+ strategy visible in the earnings
Positive effects of Dual+ strategy visible in the earnings Adjusted EBIT (in € million, continuing operations) 144 Cyclical decline in unit sales from Sale of Torqeedo not 187k to 143k units reflected here, very positive effect visible in “Discontinued” 77 figures 2023 Business Classic: Service: Por
Slide 9: Realignment of our Dual+ strategy for the next phase
Realignment of our Dual+ strategy for the next phase Grow Classic business Expand Solutions offering in based on strong Energy & New Technology performance and (formerly “Green") and beyond, consolidation SOLUTIONS where we have a right-to-win → margin uptake UT → Expansion of value chain coverage,
Slide 10: Good progress in the Classic segment
Good progress in the Classic segment Consolidation: Sales and service of various Performance boost: Strategic partnership Daimler Truck industrial engines1 with 90% of customers stay with us and Long-term cooperation with TAFE Motors for the thus access to new application areas licensed production o
Slide 11: Service with continuous growth
Service with continuous growth Service revenues (in € million) Highlights 2024 ▪ Successful integration of 2023 acquisitions: Diesel Motor 7% CAGR Nordics (now DEUTZ Nordic) and 512 Mauricio Hochschild 484 450 ▪ Acquisition of BTH Fast in Poland, resulting in own central service and sales organizati
Slide 12: Why we are setting up a new segment DEUTZ Solutions
Why we are setting up a new segment DEUTZ Solutions ▪ Capture value beyond engine and service by entering businesses with right to win for DEUTZ; higher value chain coverage and thus greater proximity to the end customer, less cyclicity and sustainable profitability ▪ Focus on tailored New Technolog
Slide 13: DEUTZ New Technology with good progress and clear positioning for growth
DEUTZ New Technology with good progress and clear positioning for growth 2024: Focus and consistent market positioning Expectations for 2025 Technological focus ▪ Fully supply-ready for e-products ▪ Divestment of Torqeedo (April 2024) – and thus reduction of losses ▪ Appropriate structure to take ▪
Slide 14: Own ecosystem for hydrogen in Spain
Own ecosystem for hydrogen in Spain ▪ Inauguration of hydrogen genset with green ecosystem at DEUTZ's Zafra site in Spain ▪ “Proof of concept” for storage and reconversion of green hydrogen with the DEUTZ engine TCG 7.8 H2 as centerpiece ▪ Investment as part of a consortium of companies, as a stand-
Slide 15: Entry into Energy business
Entry into Energy business ▪ Focus on genset market, which is growing strongly especially in the USA; key drivers: − Inadequate infrastructure − Increasingly severe weather events − Energy transition − Relocation of production to the USA ▪ Important step from component manufacturer to system provide
Slide 16: Immediate earnings contribution from Blue Star Power Systems in 2024
Immediate earnings contribution from Blue Star Power Systems in 2024 Revenue of Blue Star Power Systems (in $ million) ▪ Blue Star Power System significantly ahead of plan in 2024 – strong second half of the year, 146 including revenue contribution of ~€62 million in 2024 from consolidation in the D
Slide 17: Status cost program & FY 2024 in numbers
Status cost program & FY 2024 in numbers Oliver Neu 17 DEUTZ Geschäftszahlen FY 2024 | 20. März 2025
Slide 18: Full focus on implementation of Dual+ strategy
Full focus on implementation of Dual+ strategy Our strategy Our 2030 ambition CFO perspective Ensure execution & performance Finance our growth 18 DEUTZ FY 2024 results | March 20, 2025
Slide 19: Implementation of Future Fit cost program is progressing
Implementation of Future Fit cost program is progressing: >€20 million will be recognized in P&L in the current year Cost program (in € million) 50 50 ▪ Program launched in October 2024, includes structural measures such as 20 20 the reduction of up to 300 positions I Classic R&D in 2025 (FTE) and t
Slide 20: FY 2024 business figures
FY 2024 business figures1 New orders Unit sales Revenue in € million in units in € million +4.4% -23.6% -12.1% 1,749.9 1,827.1 187,116 2,063.2 1,813.7 142,907 2023 2024 2023 2024 2023 2024 ▪ New orders in 2024 benefit from consolidation of BSPS2 and RRPS3 transactions, book-to-bill ratio at 1.01 (20
Slide 21: Revenue: Service business and Americas region grow
Revenue: Service business and Americas region grow Revenue breakdown by application segment1 Revenue breakdown by region1 FY 2024 (FY 2023) FY 2024 (FY 2023) Stationary Equipment Miscellanous Africa/Middle East Europe (ex Germany) 9% (9%) 4% (3%) 4% (4%) 35% (37%) €167.3 million €72.8 million €76.4
Slide 22: Clearly positive net income despite low capacity utilization
Clearly positive net income despite low capacity utilization EBIT before exceptional items1 in € million ▪ EBIT before exceptional items1 characterized by lower production volume and corresponding negative -46.6% economies of scale 7.0% ▪ Net income1 in 2024 of €42.0 million (2023: €106.9 million) 1
Slide 23: R&D spending, capital expenditure, and working capital
R&D spending, capital expenditure, and working capital1 Net R&D spending2 Capital expenditure2,3 Working capital in € million in € million in € million -4.6% +0.8% -12.6% 97.9 93.4 379.8 383.0 117.1 17.1 102.4 18.4% 21.1% 4.7% 5.1% 26.0 2023 2024 2023 2024 31.12.2023 31.12.2024 R&D ratio Therof addi
Slide 24: Cash flow and net debt
Cash flow and net debt Cash flow from Free cash flow 2, 3 Free cash flow Net debt1, 4 in € million in € million operating acitvities1 before M&A1, 3 in € million in € million +62.2 -41.1 225.6 -112.0 151.5 24.8 -42.9 72.9 163.4 Thereof leases 110.4 Thereof leases 30.0 81.5 86.9 -87.2 2023 2024 2023
Slide 25: Balance sheet: financing growth and dividend secured
Balance sheet: financing growth and dividend secured Equity1 Leverage2 Dividend per share in € million Net debt3/EBITDA4 in € 1,683 1,590 0.17 0.17 0.15 50.4% 46.7% 848 1.3 743 0.8 0.6 31.12.2023 31.12.2024 2022 2023 2024 2022 2023 20245 Total assets Equity % Equity ratio ▪ Equity ratio increased fu
Slide 26: New segment reporting from Q1 2025 reflects revised Dual+ strategy
New segment reporting from Q1 2025 reflects revised Dual+ strategy Our strategy Segment structure from 2025 onwards I + DEUTZ Classic → Classic engines DEUTZ DEUTZ Service Engines & Services → Service business, excluding service in the DEUTZ Solutions segment II DEUTZ Energy DEUTZ → Genset business
Slide 27: Agenda: Guidance for 2025
AGENDA Guidance for 2025 Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 27 DEUTZ FY 2024 results | March 20, 2025
Slide 28: Global market forecasts 2025
Global market forecasts 2025 Key global macro trends 2025 Market forecasts for relevant segments OECD economic outlook Agricultural machinery ▪ CEMA business climate index shows strongest increase ▪ OECD and market indicators with cautious recovery trends for H2 since the start of the recession 2025
Slide 29: Guidance: Positive development expected in the 2025 financial year
Guidance: Positive development expected in the 2025 financial year ▪ Economic recovery expected in Guidance 2025 the second half of 2025 €2.1 to €2.3 billion ▪ Sustainable cost savings of at thereof €2.0 to €2.2 billion in the DEUTZ Revenue least €20 million from Future Fit Engines & ervices segment
Slide 30: With our 2025 guidance, we confirm our mid-term targets for 2028
With our 2025 guidance, we confirm our mid-term targets for 2028 Mid-term revenue ambition (in € billion) ▪ Solutions expected to grow at 30% CAGR until 2030; more than €500 +13% CAGR ~4.0 million in revenue expected from Energy 3.2-3.4 21% Solutions – growth driven both organically and by acquisiti
Slide 31: Our 2028 mid-term targets
Our 2028 mid-term targets Outlook for 2028 Revenue distribution 20282 Revenue €3.2 to €3.4 billion ~ 0.7-0.8 Adjusted ~ 0.5-0.6 thereof: EBIT 8 to 9% >0.4 Energy UT ~ 1.8-2.0 margin1 Upward trajectory: E E Dividend Stable or higher per share Classic Solutions Service than previous year Medium-term t
Slide 32: Review 2024: Solid performance as a result of strategy implementation and cost measures
Review 2024: Solid performance as a result of strategy implementation and cost measures New orders Unit sales Revenue Adjusted EBIT1, 2 -46.6% +4.4% -23.6% €76.7 million €1,827.1 million 142,907 Units -12.1% €1,813.7 million EBIT margin1, 2 of 4.2% Book-to-bill ratio at 1.0 Engines and gensets Econo
Slide 33: Any questions?
Thank you for your attention! Any questions?
Slide 34: Financial calendar and contact details
Financial calendar and contact details Finanzkalender Contact Q1 2025 quarterly statement April 30 Investor Relations Annual General Meeting Mai 8 +49 (0) 221 822-3600 2025 H1 2025 interim report August 7 ir@deutz.com Q3 2025 quarterly statement November 6 Follow us on ANNUAL REPORT 2024 DEUTZ 2024
Slide 35: Appendix
— Appendix
Slide 36: FY 2024 by segments
FY 2024 by segments Classic and Green Classic Green1 2023 2024 2023 2024 ▪ In FY 2024, the Classic segment also New orders included the business of Blue Star Power 1,743.2 1,819.6 6.7 7.5 in € million Systems since August, in addition to Classic engines and service Unit sales1 186,718 142,084 398 82
Slide 37: Future Fit: Potential confirmed in all areas
Future Fit: Potential confirmed in all areas Field Details I R&D costs in the €20 million Flexibilization and reduction of capacities and costs – through Classic segment offshoring, nearshoring and reduction of jobs in Cologne II More focused spending €10 million Alignment of product development bud
Slide 38: DEUTZ FY 2024 results | March 20, 2025
DEUTZ FY 2024 results | March 20, 2025