Deutz Ag · XETR:DEZ
Deutz — 9M 2024 Earnings Presentation
26 slides from Deutz's earnings presentation, Nov 7, 2024
Slide 1: Results for 9M 2024
DEUTZ Results for 9M 2024 November 7, 2024
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: Overview 9M 2024 & current development
AGENDA Overview 9M 2024 & current development Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 3 DEUTZ Geschäftszahlen 9M 2024 | 7. November 2024
Slide 4: 9M 2024: DEUTZ remains profitable after a difficult Q3
9M 2024: DEUTZ remains profitable after a difficult Q3 New orders Revenue EBIT margin1 €1,346 million €1,306 million 4.4% -3.8% on prior-year, -13.4% on prior-year, Margin decline to 1.7% positive effect in Q3 from decline in Q3 not least due to in Q3 particularly due to strategic portfolio three-we
Slide 5: Revenue: Service continues to grow, Americas stable
Revenue: Service continues to grow, Americas stable Revenue breakdown by application segment1 Revenue breakdown by region1 9M 2024 (9M 2023) 9M 2024 (9M 2023) Stationary Equipment Miscellaneous Africa/Middle East Europe 7% (9%) 3% (3%) 4% (4%) (excl. Germany) €97.8 million €37.4 million €51.7 millio
Slide 6: Third quarter 2024 with important strategic steps
Third quarter 2024 with important strategic steps CLASSIC SOLUTIONS SERVICE ▪ Closing of the takeover of sales and ▪ DEUTZ New Tech organization set up ▪ Takeover of the central Polish DEUTZ service activities for Daimer Truck under new leadership; evaluation of dealer BTH FAST – with expandable eng
Slide 7: €10-15 million savings in Q4 2024 through consistent implementation of cost measures
€10-15 million savings in Q4 2024 through consistent implementation of cost measures Flexibilization of “Classic” production costs (esp. personnel) ▪ Reduction in shifts, working hours (including short-time working in Stabilization Since Q1 Spain) and temporary workers of the result ▪ Savings in pur
Slide 8: Guidance 2024 adjusted due to weak market environment
Guidance 2024 adjusted due to weak market environment Guidance 2024 Weak market environment Less than 150,000 engines Unit sales (previously: max. of 160,000 engines) Cost measures Around €1.8 billion Revenue (previously: €1.9 to €2.1 billion) Implementation of Dual+ strategy (Classic, Adjusted EBIT
Slide 9: Structural cost program of €50 million to increase competitiveness
In addition, structural cost program of €50 million to increase competitiveness in the long term Holistic Quick ramp-up Savings € million I R&D costs in the Classic segment ~20 ▪ Sustainable savings in 2025 and 2026 – at least 40% of the defined savings volume already fully II More focused spending
Slide 10: Status cost program & 9M 2024 in figures
Status cost program & 9M 2024 in figures Oliver Neu 10 DEUTZ Geschäftszahlen 9M 2024 | 7. November 2024
Slide 11: Cost program launched and savings target underpinned with measures
Cost program launched and savings target underpinned with measures Cost program (in € million) 50 50 50 ▪ Cross-departmental team set up to identify and track the measures I Classic R&D 20 20 2025 ▪ Defined measures include structural 35 Identified measures such as job cuts as well as the sustainabl
Slide 12: Potential confirmed in all areas
Potential confirmed in all areas Field Details I R&D costs in the Flexibilization and reduction of capacities and costs due to delays in the Classic segment introduction of new emission standards – through offshoring, nearshoring and (€20 million) reduction of jobs in Cologne II More focused spendin
Slide 13: Results for 9M 2024
Results for 9M 20241 New orders Unit sales Revenue € million Units € million -3.8% -22.0% -13.4% 1,398.9 1,346.2 137,559 1,507.2 1,305.9 107,350 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 ▪ Order intake benefits from first-time consolidation of BSPS2 and RRPS3 business in Q3, Book-to-bill ratio
Slide 14: Earnings Q3 2024 characterized by volume effects
Earnings Q3 2024 characterized by volume effects EBIT before exceptional items1 (€ million) % Adjusted EBIT margin ▪ EBIT before exceptional items1 in Q3 2024 at €7.2 million (Q3 2023: €35.2 million), margin at 1.7% (Q3 2023: 7.0%) -46.2% ▪ In particular, negative volume effects due to low engine sa
Slide 15: 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 € million € million € million +4.9% +9.4% +37.4% 66.8 70.1 415.4 147.6 379.8 16.2 4.4% 5.4% 107.4 18.4% 22.3% 8.1 9M 2023 9M 2024 9M 2023 9M 2024 31.12.2023 30.09.2024 R&D ratio Therof ad
Slide 16: Changes in cash flow and net financial position
Changes in cash flow and net financial position Cash flow from Free cash flow 2, 3 Free cash flow Net financial position1, 4 € million € million operating activities1 before M&A1, 3 € million € million -105.5 -37.9 -38.0 69.3 -124.8 Thereof leases 9.4 Thereof leases -13.4 -81.5 31.4 -163.4 -84.2 -13
Slide 17: Results for 9M 2024: Segments Classic and Green
Results for 9M 2024 Segments Classic und Green Classic Green1 9M 2023 9M 2024 9M 2023 9M 2024 ▪ Classic segment determines the Group’s New orders topline 1,392.6 1,340.1 6.3 6.1 € million ▪ Sales and order intake of the Green segment remain at a very low level due Unit sales1 137,531 106,829 28 521
Slide 18: Mid-term outlook after Capital Markets Day
AGENDA Mid-term outlook after Capital Markets Day Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 18 DEUTZ Results 9M 2024 | November 7, 2024
Slide 19: Our long-term strategic approach reflects the dynamics of our environment
Our long-term strategic approach reflects the dynamics of our environment STRENGTHEN THE BASE BROADEN THE BASE BECOME SUSTAINABLE Horizon III 2030++ Horizon II 2026 – 2030 Horizon I 2022 – 2025 Improve performance, prepare & Continue to build the solutions Unleash the full potential and set right fo
Slide 20: Our Dual+ strategy realigned for our second strategic horizon
Our Dual+ strategy realigned for our second strategic horizon I II Grow Classic business Expand Solutions offering in based on strong Energy & New Technology performance and (formerly “Green") and beyond, consolidation C IC SOLUTIONS where we have a right-to-win → margin uptake UTI → Expansion of va
Slide 21: Strong 2030 revenue ambition
Strong 2030 revenue ambition Mid-term revenue ambition (in € billion) +11% CAGR ~4.0 ▪ Solutions expected to grow with 30% C GR until 2030; more than €500 3.2-3.4 21% Solutions million revenue expected from Energy – 18% growth driven both organically and via ~2.4 25% Service acquisitions and >€300 m
Slide 22: Our new mid-term targets
Our new mid-term targets Mid-term targets 2028 Revenue split 2028 From 2025 on, Unit sales no longer part of guidance ~ 0.7-0.8 I II Sales €3.2-3.4 billion ~ 0.5-0.6 Thereof: C IC >0.4 Energy Adjusted UTI 8 to 9% ~ 1.8-2.0 EBIT margin ER ICE Upward trajectory: Dividend Stable or higher than previous
Slide 23: YouTube-Link
YouTube-Link DEUTZ Results 9M 2024 | November 7, 2024
Slide 24: Thank you for your time. Any questions?
Thank you for your time. Any questions? DEUTZ Results 9M 2024 | November 7, 2024
Slide 25: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact Eigenkapitalforum Frankfurt November 27, 2024 Investor Relations 2024 / Annual Report 2024 March 20, 2025 +49 (0) 221 822 3600 ir@deutz.com 2025 Q1 2025 quarterly statement April 30, 2025 Annual General Meeting May 8, 2025 Follow us:
Slide 26: DEUTZ Results 9M 2024 | November 7, 2024
DEUTZ Results 9M 2024 | November 7, 2024