Deutz Ag · XETR:DEZ
Deutz — Q1 2022 Earnings Presentation
21 slides from Deutz's earnings presentation, May 5, 2022
Slide 1: DEUTZ – Results for Q1 2022
DEUTZ – Results for Q1 2022 – May 5, 2022
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 2022
Agenda Agenda Overview & highlights of Q1 2022 Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 3
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales Revenue Adjusted EBIT1 +€15.0 million to DEUTZ Classic engines +10% to +30% to +35% to €15.8 million €509.6 million €447.9 million EBIT margin1 of 3.5% (+3.3pp) Book-to-bill ratio of 1.14 43,559 units Classic segment: 5.8% (+4.4pp) Mul
Slide 5: Multi-phase strategy process: first targets defined
Multi-phase strategy process: first targets defined 2022–2025 2026–2030 2030–… Significant increase in the profitability of the Classic business by 2023 Our new service target: Expansion of the profitable service business – organic and through acquisitions − Acquisition of AUSMA Motorenrevisie B
Slide 6: Price increases are starting to be passed on
Price increases are starting to be passed on 8–12% increase in prices in Energy prices Raw material prices Logistics costs Product costs the new engine business in 2022 Increased costs cannot be passed on to customers immediately due to the high level of orders on hand Ongoing monitoring of cost
Slide 7: Restructuring of funding
Restructuring of funding Situation before renegotiation €160 million syndicated loan with duration until June 2024 3 bilateral credit lines of €25 million each – terms ending in February 2023 Adjustment of the syndicated loan in May 2022 Termination of the short-term bilateral credit lines – i
Slide 8: Agenda: Q1 2022 in numbers
Agenda Agenda Q1 2022 in numbers Christian Ludwig | SVP Communications & IR 8
Slide 9: Results for Q1 2022
Results for Q1 2022 New orders Unit sales Revenue € million Units € million +9.6% +30.3% +30.4% 50,015 509.6 6,454 447.9 464.8 38,384 343.4 6,135 < Thereof Torqeedo Q1 2021 Q1 2022 Q1 2021 Q1 2022 < Q1 2021 Q1 2022 Marked rise in new orders – book-to-bill ratio of 1.14 (Q1 2021: 1.35) Rise in un
Slide 10: Revenue for Q1 2022 in detail
Revenue for Q1 2022 in detail Revenue breakdown by region Revenue breakdown by application segment Q1 2022 (Q1 2021) Q1 2022 (Q1 2021) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (3%) 40% (43%) 5% (6%) 31% (30%) €14.8 million €176.8 million €20.9 million €13
Slide 11: Continued improvement in earnings
Continued improvement in earnings Adjusted EBIT (€ million) Adjusted EBIT improved to €15.8 million in Q1 20221 EBIT margin before exceptional items (Q1 2021: €0.8 million) due to: − increased volume of business, bringing economies of scale +€15.0 million / +3.3pp qoq − effects of cost savings − p
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 +16.7% +57.6% +8.8% 5.9% 5.3% 14.5 15.7% 16.0% 23.7 2.4 275.4 20.3 9.2 253.2 1.4 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Dec. 31, 2021 Mar. 31, 2022 R&D ratio1 Thereo
Slide 13: 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 -€7.4 million -€3.2 million -€7.0 million 17.1 9.7 -1.7 -61.3 -59.8 -4.9 -79.7 -86.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Dec. 31, 2021 Mar. 31, 2022 Thereof lease liabilities
Slide 14: Healthy balance sheet with consistently high equity ratio
Healthy balance sheet with consistently high equity ratio Equity and equity ratio Despite a rise in equity, the equity ratio held steady owing to stronger € million growth in total assets Unused credit lines totaling around €185 million are available 1,336.1 1,290.1 Adjustment of the syndicate
Slide 15: Results for Q1 2022 | Classic segment
Results for Q1 2022 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million +10.7% +35.1% +30.2% +452.2% 497.1 435.3 25.4 449.2 43,559 32,249 334.3 5.8% 4.6 1.4% Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Strong growth in new or
Slide 16: Results for Q1 2022 | Green segment
Results for Q1 2022 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million -19.9% +5.2% +38.5% -134.1% 15.6 6,456 6,135 12.5 12.6 -45.1% 9.1 -4.1 -76.2% -9.6 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Fall in new orders compared with the high v
Slide 17: Agenda: Guidance
Agenda Agenda Guidance Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 17
Slide 18: Ongoing challenges in the supply chain
Ongoing challenges in the supply chain Allocation arrangements in the global market, particularly for electronics, plastics, and steel Power outages and widespread coronavirus lockdowns in China Substantial price rises beyond the standard inflation surcharges for metals Disruption in the int
Slide 19: Guidance for 2022 still subject to change
Guidance for 2022 still subject to change Guidance for 2022 (as at February 2022) Unit sales 165,000 to 180,000 DEUTZ engines1 Revenue €1.7 billion to €1.85 billion (Classic: €1.6 billion to €1.75 billion / Green: €75 million to €100 million) EBIT margin before exceptional items 3.5% to 5.5% (Classi
Slide 20: Any questions?
Thank you for your attention! Any questions?
Slide 21: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact H1 2022 interim report August 11, 2022 Christian Ludwig, CFA SVP Communications & IR Q3 2022 quarterly statement November 10, 2022 +49 (0)221 822 3600 christian.ludwig@deutz.com Follow us: 2021 ONLINE ANNUAL REPORT DEUTZ 2021 – THE MA