Deutz Ag · XETR:DEZ
Deutz — Q1 2023 Earnings Presentation
22 slides from Deutz's earnings presentation, May 4, 2023
Slide 1: DEUTZ – Results for Q1 2023
DEUTZ – Results for Q1 2023 – May 4, 2023
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 2023
Agenda Agenda Overview & highlights of Q1 2023 Dr. Sebastian C. Schulte | CEO 3
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales Revenue Adjusted EBIT1 +€16.3 million to DEUTZ engines +3.2% to +15.5% to €32.1 million +5.9% to €526.1 million EBIT margin1 6.2% (+2.7 pp) Book-to-bill ratio: 1.02 46,110 units €517.2 million Classic segment 8.8% (+3.0 pp) Free Guidan
Slide 5: Strategy progress report: Classic
Strategy progress report: Classic Classic ▪ Daimler Truck deal completed I II − Integration roadmap defined and implementation started ▪ Continuous improvement of the supply chain and production processes ▪ Preparations started to add a third shift from H2/2023 for the production of sub-4 liter comp
Slide 6: DEUTZ enters into alliance with Daimler Truck
DEUTZ enters into alliance with Daimler Truck Classic ▪ DEUTZ acquires IP and licenses for the development and production of MDEG and HDEP engines ▪ Transaction completed at end of March ▪ Daimler Truck takes a 4.19% stake in DEUTZ ▪ Initial talks held with prospective customers ▪ Cross-functional k
Slide 7: Strategy progress report: Green
Strategy progress report: Green Green ▪ Project pipeline growing: − Ten battery-electric system projects ongoing with OEM partners − Five hydrogen projects ongoing ▪ Ongoing process established to evaluate new business models and potential partnerships ▪ Planned investment of more than €100 million
Slide 8: Strategy progress report: Service
Strategy progress report: Service Service ▪ Strong first quarter: − Revenue rises to €121.3 million (+10.5%) − New orders up to €127.6 million (+9.8%) ▪ Sharp rise in volume of business, particularly for parts sales and DEUTZ Xchange ▪ Ongoing expansion of inhouse service structure – opening of the
Slide 9: Agenda: Q1 2023 in numbers
Agenda Agenda Q1 2023 in numbers Bild auszutauschen Timo Krutoff | CFO 9
Slide 10: Results for Q1 2023
Results for Q1 2023 New orders Unit sales1 Revenue € million Units € million +3.2% +10.6% +15.5% 55,333 526.1 517.2 509.6 50,015 9,223 447.9 6,454 < thereof Torqeedo Q1 2022 Q1 2023 Q1 2022 Q1 2023 < Q1 2022 Q1 2023 ▪ New orders well above the level achieved in the prior-year period due to sharp ris
Slide 11: Revenue for Q1 2023 in detail
Revenue for Q1 2023 in detail Revenue breakdown by region Revenue breakdown by application segment Q1 2023 (Q1 2022) Q1 2023 (Q1 2022) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (3%) 39% (40%) 6% (5%) 28% (31%) €16.8 million €202.4 million €30.7 million €14
Slide 12: Strong improvement in profitability
Strong improvement in profitability Adjusted EBIT (€ million) ▪ Adjusted EBIT1,2 improves to EBIT margin before exceptional items €32.1 million (Q1 2022: €15.8 million) due to: − economies of scale thanks to increased business volume +€16.3 million / +2.7 pp yoy − positive product mix effects 32.1 −
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 +1.7% +370.3% +3.7% 5.3% 17.7% 17.8% 4.7% 68.2 359.1 23.7 24.1 346.3 1.1 14.5 2.4 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Dec. 31, 2022 Mar. 31, 2023 R&D ratio1 there
Slide 14: 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 +€21.3 million +€15.7 million +€9.3 million 31.0 10.8 9.7 -94.6 -91.0 -4.9 -154.9 -164.2 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Dec. 31, 2022 Mar. 31, 2023 thereof lease liabiliti
Slide 15: Balance sheet remains solid
Balance sheet remains solid Equity and equity ratio Dividend per share € million € 1,586.0 1,475.4 0.15 0.15 45.3% 45.0% 668.8 714.0 0 0 Dec. 31, 2022 Mar. 31, 2023 2019 2020 2021 20221 Total assets Equity Equity ratio ▪ Equity ratio down slightly despite the rise in equity, because the balance shee
Slide 16: Results for Q1 2023 | Classic segment
Results for Q1 2023 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million +3.6% +5.8% +16.3% +74.8% 46,104 506.1 44.4 497.1 515.0 43,559 435.3 8.8% 25.4 5.8% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 ▪ Small year-on-year increa
Slide 17: Results for Q1 2023 | Green segment
Results for Q1 2023 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million -11.2% +43.0% -11.9% -26.0% 9,229 12.5 6,456 12.6 -76.2% 11.1 11.1 -109.0% -9.6 -12.1 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 ▪ Fall in new orders owing
Slide 18: Agenda: Outlook
Agenda Agenda Outlook Dr. Sebastian C. Schulte | CEO 18
Slide 19: Full-year guidance for 2023 refined
Full-year guidance for 2023 refined 2022 2023e Unit sales 181,268 DEUTZ engines1 Upper end of 175,000 to 195,000 DEUTZ engines1 Revenue €1.95 billion Upper end of €1.9 billion to €2.1 billion Adjusted 4.6% Upper end of 4.0% to 5.0% EBIT margin2 Free cash flow €16.6 million Mid double-digit million e
Slide 20: Medium-term targets based on the Dual+ strategy
Medium-term targets based on the Dual+ strategy Outlook for 2025 Revenue > €2.5 billion Service business’s approx. share of revenue €600 million Adjusted 6.0% to 7.0% EBIT margin1 DEUTZ confirms its medium-term targets for 2025 20 1 Before exceptional items. DEUTZ Q1 2023 | May 4, 2023
Slide 21: Financial calendar and contact details
Financial calendar and contact details Upcoming financial dates Roadshow | Frankfurt May 9, 2023 Roadshow | Munich May 17, 2023 Quirin Champions Conference | Frankfurt June 1, 2023 Warburg Highlights Conference | Hamburg June 16, 2023 H1 2023 interim report August 10, 2023 Roadshow | virtual August
Slide 22: Any questions?
Thank you for your attention! Any questions?