Deutz Ag · XETR:DEZ
Deutz — FY2010 Earnings Presentation
34 slides from Deutz's earnings presentation, Mar 18, 2011
Slide 1: 2010 financial year – one step ahead
2010 financial year – one step ahead 17/18 March 2011
Slide 2: Agenda
Agenda Review of 2010 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2010 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2010 financial year 17/18 March 2011 2
Slide 3: Highlights of 2010
Highlights of 2010 DEUTZ is again 'one step ahead' - DEUTZ profitable again with an operating profit* of over €42 million. - Unit sales and revenue grew even more strongly in the fourth quarter, up 42% and 38% respectively on 2009. We sold 167,680 engines and generated revenue of €1,189 million. -
Slide 4: Summary of new orders
Summary of new orders € million 56.1% 42.4% 1,315.0 324.3 842.3 990 7 990.7 209.9 328.2 632.4 230.5 90.8 59 1 59.1 23 4 237.4 171.4 2009 2010 Q4 2009 Q4 2010 New orders up 56% on 2009; Mobile Machinery was particularly encouraging, rising by 109% to €417 million (2009: €200 million) Boom in the
Slide 5: Summary of unit sales
Summary of unit sales Units 42.1% 65.7% 167,680 167 680 17,501 150,179 117,961 15,541 102,420 51,622 5,444 31 157 31,157 46 178 46,178 3,994 27,163 2009 2010 Q4 2009 Q4 2010 Unit sales increase in all application segments, above all Mobile Machinery, which gained 106% Especially E i ll strong t
Slide 6: Summary of revenue
Summary of revenue € million 37.7% 60.7% 1,189.1 270.1 863.4 919.0 368.7 227.4 78.8 636 0 636.0 229.55 229 289 9 289.9 59.8 169.7 2009 2010 Q4 2009 Q4 2010 Growth in revenue somewhat less than that of unit sales due to the slight shift in the product mix towards smaller engines Revenue from mobi
Slide 7: Revenue by region
Revenue by region 2010 (2009) Africa & Middle East 6% €73.0 million (€57.5 million) Germany 19%* Asia-Pacific 7% €228.8 million €89.1 million (€202.4 million) ((€83.5 million)) €1,189.1 €1 189 1 million (€863.4 million) Americas 10% €116 1 million €116.1 (€69.6 million) Rest of Europe 57% €682.1 mil
Slide 8: Overview of segments: Compact Engines
Overview of segments: Compact Engines Change Q4 Q4 Change € million 2010 2009 ((%)) € million 2010 2009 ((%)) New orders 990.7 632.4 56.7 New orders 237.4 171.4 38.5 Unit sales 150,179 102,420 46.6 Unit sales 46,178 27,163 70.0 Revenue 919 0 919.0 636 0 636.0 44 5 44.5 Revenue 289 9 289.9 169 7 169.
Slide 9: Compact Engines: revenue by application segment
Compact Engines: revenue by application segment 2010 (2009) Other 3% €31 2 million (€0.7 €31.2 (€0 7 million) Mobile Machinery 34% Service 12% €315.2 million (€148.1 million) €114.7 million (€87 5 million) (€87.5 €919.0 million Stationary Equipment 13% (€636.0 million) €120.2 million (€106.2 million
Slide 10: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Change Q4 Q4 Change € million 2010 2009 ((%)) € million 2010 2009 ((%)) New orders 324.3 209.9 54.5 New orders 90.8 59.1 53.6 Unit sales 17,501 15,541 12.6 Unit sales 5,444 3,994 36.3 Revenue 270 1 270.1 227 4 227.4 18 8 18.8 Revenue 78 8 78.8 59 8 59
Slide 11: DEUTZ Customised Solutions: revenue by application segment
DEUTZ Customised Solutions: revenue by application segment 2010 (2009) Agricultural Machinery 2% Service 37% €4.7 million (€7.4 million) €101.1 million Other 7% (€87.5 million) €19.11 million €19 (€24.4 million) €270.1 million Mobile Machinery 20% (€227.4 million) €54.4 million (€29.6 million) Autom
Slide 12: Agenda
Agenda Review of 2010 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2010 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2010 financial year 17/18 March 2011 12
Slide 13: Review of key financials for 2010
Review of key financials for 2010 Lower fixed costs and an improved gross margin enabled DEUTZ to earn a comfortable operating profit (EBIT before one-off items) of €42.2 million despite an operating loss of €46.3 million in 2009. Working capital at €112.6 million was higher than in 2009 (€98.3
Slide 14: Key financials: EBIT before one-off items
Key financials: EBIT before one-off items € million EBIT margin -5.4% 3.5% -2.5% 4.6% 42.2 33.5 16.8 4.8 -46.3 10.7 17.3 -5.6 5.6 13.4 11.11 -55.6 -8.6 -1.0 -5.7 -1.4 -1.4 2009 2010 Q4 2009 Q4 2010 Compact Engines DEUTZ Customised Solutions Other 2010 financial year 17/18 March 2011 14
Slide 15: Key financials: R&D spending and capital expenditure
Key financials: R&D spending and capital expenditure € million R&D Capital expenditure -2.7% 12.6% 134.6 119.55 119 51 5.1 104.6 9.2 129.5 101.8 11.5 11.0 106.6 93.1 90.8 2009 2010 2009 2010 R&D ratio*) 12.1% 8.6% Continued focus on forthcoming Tier 4 exhaust emissions Proportion of capitalised
Slide 16: Key financials: cash position in 2010
Key financials: cash position in 2010 92.7 -9.3 -5.2 214.7 -99.6 67.9 -125.6 '31 December 2009 EBITDA Working Capital Other operating cash Capital expenditure Cash flow from '31 December 2010 flow (incl. R&D) financing activities 2010 financial year 17/18 March 2011 16
Slide 17: Key financials: net financial position and working capital
Key financials: net financial position and working capital € million Net financial position Working capital 14.5% 78 7 78.7 112.6 98.3 29 2.9 -73.6 73.6 Working capital 2009 2010 2009 ratio 11.4% 9.5% 2010 Despite the strong revenue growth, working capital rose Cash and cash equivalents as at 31
Slide 18: Agenda
Agenda Review of 2010 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2010 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2010 financial year 17/18 March 2011 18
Slide 19: Outlook for 2011
Stable and very encouraging demand for our engines makes us highly optimistic for the long term and enables us to make a positive forecast. Outlook for 2011 Unit sales Considerablyy more than 200,000 engines g Revenue +25% EBIT (before one-off items) At least €80 million Equity ratio Above 30% Capit
Slide 20: Strategic programme for 2010–2020: Fit for the future
Strategic programme for 2010–2020 Fit for the future Profitable growth Product leadership Operational excellence Expansion of the market Supply of integrated system Process company position in the BRIC countries co ntries solutions l ti High-performance organisation 2015–2020 2015–2020
Slide 21: New engine development and engine refinement on track
New engine development and engine refinement on track Ready for production TCD 12.0 TCD 6.1 TCD 7.8 TCD 4.1 TCD 3.6 TCD 16.0 Jan 2011 Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2011 Over the last few years, we have worked very hard and successfully on refining our existing engines and developing new
Slide 22: DEUTZ emerged from the crisis with renewed strength
"DEUTZ emerged g from the crisis with renewed strength g and, with its developments for the future, is already one step ahead." Dr Helmut Leube Chairman of the Board of Management of DEUTZ AG 2010 financial year 17/18 March 2011 22
Slide 23: Agenda
Agenda Review of 2010 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2010 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2010 financial year 17/18 March 2011 23
Slide 24: Summary of key financials (I)
Summary of key financials (I) € million 2010 2009 Change (%) Revenue 1 189 1 1,189.1 863 4 863.4 37 7 37.7 EBITDA 92.7 -8.8 -- EBITDA (before one-off items) 112.6 20.8 441.3 EBIT 22.3 -89.2 -- EBIT before one-off items 42.2 -46.3 -- g EBIT margin 1.9 -10.3 -- EBIT margin before one-off items (%) 3.5
Slide 25: Summary of key financials (II)
Summary of key financials (II) € million 2010 2009 Change (%) Total assets 1,041.7 1,071.1 -2.7 E it Equity 374 3 374.3 379 2 379.2 -1.3 13 Equity ratio (%) 35.9 35.4 -- Cash flow from operating activities 78.2 117.4 -33.4 Free cash flow -55.9 12.6 -- Net financial position -73.6 2.9 -- Working capi
Slide 26: Income statement
Income statement € million 2010 2009 Change (%) Revenue 1,189.1 863.4 37.7 Changes in inventories and other own work capitalised 46.4 -9.8 -- Other operating income 55 3 55.3 72 8 72.8 -24 24.00 Cost of materials -781.1 -567.9 37.5 Staff costs -253.0 -265.3 -4.6 Depreciation and amortisation -63.3 -
Slide 27: Balance sheet: assets
Balance sheet: assets 31 Dec Change Assets (€ million) 31 Dec 2009 2010 (%) Non-current assets (excluding deferred tax assets) 591.5 539.4 9.7 Deferred tax assets 16.4 22.4 -26.8 Inventories 157.6 127.5 23.6 Trade receivables 160.1 112.3 42.6 Other receivables and assets 47.7 54.3 -12.2 Cash and cas
Slide 28: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Dec 31 Dec Change Equity and liabilities (€ million) 2010 2009 (%) Equity 374.3 379.2 -1.3 P i i Provisions ffor pensions i andd other th post-retirement t ti t bbenefits fit 154 7 154.7 163 9 163.9 -5.6 56 Deferred tax provisions 0.0 0.1 -100.0 Other provisi
Slide 29: Cash flow statement (condensed)
Cash flow statement (condensed) 31 Dec 31 Dec € million 2010 2009 EBIT 22.3 -89.2 Cash flow from operating activities (continuing operations) 78.2 117.4 Cash flow from operating activities (discontinued operations) 0.0 0.0 Cash flow from operating activities (total) 78.2 117.4 Capital expenditure on
Slide 30: Overview of segments, 2010
Overview of segments, 2010 Change Change New orders (€ million) 2010 2009 (%) Unit sales 2010 2009 (%) Compact Engines 990.7 632.4 56.7 Compact Engines 150,179 102,420 46.6 DEUTZ Customised Solutions 324.3 209.9 54.5 DEUTZ Customised Solutions 17,501 15,541 12.6 Total for operating activities 1,315.
Slide 31: Overview of segments, Q4 2010
Overview of segments, Q4 2010 Q4 Q4 Change Q4 Q4 Change New orders (€ million) 2010 2009 (%) Unit sales 2010 2009 (%) Compact Engines 237.4 171.4 38.5 Compact Engines 46,178 27,163 70.0 DEUTZ Customised Solutions 90.8 59.1 53.6 DEUTZ Customised Solutions 5,444 3,994 36.3 Total for operating activiti
Slide 32: Financial calendar for 2011
Financial calendar for 2011 Annual Results Press Conference Cologne 17 March 2011 Publication of annual report for 2010 Analysts' meeting Frankfurt am Main 18 March 2011 Annual General Meeting Cologne 5 May 2011 Interim report on first quarter of 2011 12 May 2011 Conference call with analyst
Slide 33: DEUTZ AG contact details
DEUTZ AG contact details Maria Babilas Corporate Finance and Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Germany Tel.: +49 (0)221 822 5400 Fax: +49 (0)221 822 155 400 Email: babilas.m@deutz.com www deutz com www.deutz.com 2010 financial year 17/18 March 2011 33
Slide 34: 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.