Deutz Ag · XETR:DEZ
Deutz — Q1 2021 Earnings Presentation
26 slides from Deutz's earnings presentation, May 6, 2021
Slide 1: Results for Q1 2021
DEUTZ – Results for Q1 2021 – May 6, 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 2021
Agenda Agenda Overview & highlights of Q1 2021 Dr. Frank Hiller | CEO 3
Slide 4: Overview of Q1 2021
Overview of Q1 2021 Noticeable upward trend in the market Significant new order growth; orders on hand up by around 48% year on year Strong improvement in profitability and free cash flow Further progress with implementing Transform for Growth; target exceeded for take-up of the voluntary re
Slide 5: Further progress with implementing Transform for Growth
Further progress with implementing Transform for Growth Successful conclusion of the voluntary redundancy program – taken up by a total of 361 employees − Thereof 96 employees already left the Company by the end of Q1 2021 having taken voluntary redundancy − Total of 171 will have left the Company
Slide 6: Continued successful implementation of China strategy
Continued successful implementation of China strategy Joint venture with SANY remains successful: DEUTZ Hunan (SANY JV) production planning Units (thousands) − Planned increase in unit sales to between 35,000 and 40,000 engines in 2021; Q1 2021: approx. 8,000 engines 250 Production of the 2.9 en
Slide 7: Expansion of the profitable service business is on track
Expansion of the profitable service business is on track Revenue New orders Orders on hand € million € million € million +3.2% +11.5% +50.0% Our service target: 102.6 ~ €400 million 92.4 95.4 92.0 31.8 revenue in 2021 21.2 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Improvement in business per
Slide 8: Agenda: Q1 2021 in numbers
Agenda Agenda Q1 2021 in numbers Dr. Sebastian C. Schulte | CFO 8
Slide 9: Results for Q1 2021
Results for Q1 2021 New orders Unit sales Revenue € million Units € million +30.3% -4.2% +1.1% 464.8 40,069 38,384 356.7 8,523 6,135 339.8 343.4 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 < Thereof Torqeedo < Notable increase in customers' propensity to proceed with capital expenditure, resul
Slide 10: Revenue in detail
Revenue in detail Revenue breakdown by region Revenue breakdown by application segment Q1 2021 (Q1 2020) Q1 2021 (Q1 2020) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (4%) 42% (43%) 6% (7%) 30% (30%) €11.3 million €145.6 million €19.7 million €104.9 million
Slide 11: Significant improvement in earnings
Significant improvement in earnings Operating profit (EBIT before exceptional items) (€ million) Market recovery and systematic implementation of the EBIT margin before exceptional items efficiency program are resulting in ongoing improvements in earnings since Q3 2020 Significant improvement in
Slide 12: 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 -18.1% -62.1% +3.7% 7.3% 18.8% 29.0 18.1% 5.9% 24.8 20.3 235.0 243.7 14.9 11.0 1.4 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Dec. 31, 2020 Mar. 31, 2021 R&D ratio1 Ther
Slide 13: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net financial position € million € million € million +€29.0 million +€33.8 million 17.1 -1.7 -35.5 -58.0 -56.5 -11.9 Q1 2020 Q1 2021 -83.8 -87.2 Q1 2020 Q1 2021 Dec. 31, 2020 Mar. 31, 2021 Thereof lease liabilit
Slide 14: 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 1,180.5 1,214.9 160 45.3% 44.3% 150 535.2 538.2 10.8 11.0 0 65 0.0 Dec. 31, 2020 Mar. 31, 2021 up to 1 year 1 to 5 years up t
Slide 15: Agenda: Guidance
Agenda Agenda Guidance Dr. Frank Hiller | CEO 15
Slide 16: Group guidance for 2021
Group guidance for 2021 Guidance for 2021 Unit sales 140,000 to 155,000 engines1 Revenue €1.5 billion to €1.6 billion EBIT margin before exceptional items 1.0–2.0% Free cash flow negative low- to mid-double-digit million euro amount2 Difficulties with the supply of some components will continue un
Slide 17: Medium-term targets for 2023/2024
Medium-term targets for 2023/2024 Technology-neutral approach to development of the product portfolio and expansion of the high-margin service business Our targets for 2023/2024: > €2 billion Implementation of regional growth initiatives Systematic implementation of the Transform for Growth ef
Slide 18: Annex
DEUTZ Annex
Slide 19: Segment overview
Segment overview New orders Q1 2021 Q1 2020 YoY Revenue Q1 2021 Q1 2020 YoY € million change € million change DEUTZ Compact Engines 360.1 255.3 +41.0% DEUTZ Compact Engines 268.1 255.9 +4.8% DEUTZ Customized Solutions 89.1 92.5 -3.7% DEUTZ Customized Solutions 66.2 74.8 -11.5% Other 16.1 9.7 +66.0%
Slide 20: Income statement
Income statement € million Q1 2021 Q1 2020 Revenue 343.4 339.8 Cost of sales -284.3 -288.4 Research and development costs -22.7 -24.1 Selling and administrative expenses -38.4 -39.0 Other operating income 9.7 5.1 Other operating expenses -8.5 -5.6 Impairment of financial assets and reversals thereof
Slide 21: Balance sheet: assets
Balance sheet: assets € million Mar. 31, 2021 Dec. 31, 2020 Property, plant and equipment 355.3 361.7 Intangible assets 193.5 197.2 Equity-accounted investments 53.6 50.3 Other financial assets 4.6 4.4 Non-current assets (before deferred tax assets) 607.0 613.6 Deferred tax assets 74.1 74.2 Non-curr
Slide 22: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities € million Mar. 31, 2021 Dec. 31, 2020 Issued capital 309.0 309.0 Additional paid-in capital 28.8 28.8 Other reserves -0.8 -3.9 Retained earnings and accumulated income 201.0 201.1 Equity attributable to shareholders of DEUTZ AG 538.0 535.0 Non-controlling intere
Slide 23: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1 2021 Q1 2020 EBIT 0.4 -11.8 Cash flow from operating activities 17.1 -11.9 Capital expenditure on intangible assets, property, plant and equipment and -17.8 -23.1 investments Proceeds from the sale of non-current assets 0.0 0.2 Cash flow from investing ac
Slide 24: Questions & answers
Questions & answers 24
Slide 25: Thank you for your attention!
Thank you for your attention! 25
Slide 26: Financial calendar and contact details
Financial calendar and contact details Financial calendar 2021 Contact H1 2021 interim report August 12 Christian Ludwig, CFA SVP Communications & Investor Relations Q3 2021 quarterly statement November 10 +49 (0)221 822 3600 2021 annual report March 17, 2022 christian.ludwig@deutz.com 2022 Annual G