Deutz Ag · XETR:DEZ
Deutz — Investor Day (November 2021)
17 slides from Deutz's investor day presentation, Nov 17, 2021
Slide 1: Financials Update
Financials Update Dr. Sebastian C. Schulte, CFO November 17, 2021 | Coreum
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
Agenda ▪ Deep-dive on Current P&L Drivers ▪ Teach-In New Reporting Structure ▪ Cashflow & Guidance Outlook 3 DEUTZ | Capital Markets Day 2021
Slide 4: Global Transform for Growth efficiency program on track
Global Transform for Growth efficiency program on track Timeline for achieving cost savings1 € million ▪ Targeted cost savings to be achieved through reduction in 100 staff costs and reduction in operating and warranty costs ▪ Voluntary redundancy program taken up by 361 employees ▪ Savings of appro
Slide 5: Update material cost development
Update material cost development Trend ▪ Costs in the supply chain are significantly increasing by various Cost increases Internal Product price Expected impact 2021 measures increases on EBIT cost drivers ▪ DEUTZ has a strong position in Split on cost increases: negotiating with suppliers and custo
Slide 6: Sustainable development of business model
Sustainable development of business model EBIT-margin bridge to mid-term guidance +1.5–2.5 PP -2–3 PP 7–8% +1.5–2.5 PP +2.5–3.5 PP Investing in a leading position for new business 2–3% 2021e Performance Business growth Strategy New Business 2023/24e measures Asia DEUTZ confirms 2023/2024 target for
Slide 7: Teach-In New Reporting Structure
Teach-In New Reporting Structure
Slide 8: New segment structure from January 1, 2022
New segment structure from January 1, 2022 GREEN CLASSIC ▪ Electric drivetrains, Torqeedo and Futavis, ▪ Diesel, LPG and CNG, Bifuel hydrogen engines, Blue World Technologies1 ▪ Related services ▪ Related services ▪ CLASSIC as “cashcow” but still with solid growth ▪ GREEN still comparatively small b
Slide 9: New reporting structure – Pro-forma view 9M/2021
New reporting structure – Pro-forma view 9M/2021 Order intake Unit sales Revenue EBIT1 / EBIT-margin1 € million € million € million 1.132,9 1.462,2 116.273 29.086 44,0 3.9% 51,6 40,5 -13,1 -32.3% ▪ GREEN still comparatively small and loss-making ▪ CLASSIC as “cashcow” and still with solid growth rat
Slide 10: Outlook GREEN
Outlook GREEN Sales development R&D development CAGR: ~ +40% 34% 27% CAGR: ~ +28% 6% 2022e 2025e 2031e 2022e 2025e 2031e R&D Cost R&D-ratio ▪ Strong double-digit growth rates until end of the decade ▪ High R&D burden in the beginning prohibits positive EBIT ▪ Loss-making on EBIT level today ▪ As bus
Slide 11: Outlook CLASSIC
Outlook CLASSIC Sales development R&D development 4% CAGR: ~ +9% CAGR: ~ -10% 2% 1% 2022e 2025e 2031e 2022e 2025e 2031e R&D Cost R&D-ratio ▪ Solid growth rates until mid of the decade ▪ Continuous decline as R&D funds are transferred to GREEN ▪ Plateau reached in approx. 2025 ▪ EBIT-margin in the hi
Slide 12: Group outlook sales and R&D
Group outlook sales and R&D Sales split Group R&D split Group 60% 100% 50% 80% 40% 60% 30% 40% 20% 10% 20% 0% 0% 2022e 2025e 2031e 2022e 2025e 2031e Classic Green Share Green Classic Green Share Green ▪ Share of GREEN growing strongly every year ▪ R&D costs of GREEN already bigger by 2025e ▪ Target
Slide 13: Cashflow & Guidance Outlook
Cashflow & Guidance Outlook e-
Slide 14: Sustainable working capital development
Sustainable working capital development Working capital development € million ▪ Working capital ratio declining despite strong 17,4% 18,1% 16,4% sales increase ▪ Cash conversion cycle (CCC) at 62 days after 9M 322 357 274 ▪ down from 73 one year ago and ▪ down from 66 at YE 2020 152 114 137 -181 -15
Slide 15: Cashflow improvement clearly visible
Cashflow improvement clearly visible Cashflow development € million 115,9 ▪ Positive free cashflow supports return to dividend payments ▪ Payout ratio of 30% of EPS remains target 67,9 44,9 15,2 -35,6 -35,8 2019 2020 9M/21 Operating Cashflow Free Cashflow FY 2021 guidance for free cash-flow breakeve
Slide 16: Medium-term targets for 2023/2024
Medium-term targets for 2023/2024 ▪ Establishing new reporting structure to reflect our focus on sustainable drivetrain activities Our targets for 2023/2024: ▪ Technology-open approach to development of the product portfolio and expansion of the high-margin service business ▪ Systematic implementati
Slide 17: Thank you!
Thank you! DEUTZ AG Investor Relations Ottostr. 1 Phone: +49 221 822 3600 51149 Cologne, Germany E-mail: ir@deutz.com Phone: +49 (0) 221 822-0 E-mail: info@deutz.com www.deutz.com