Deutz Ag · XETR:DEZ
Deutz — FY2022 Earnings Presentation
31 slides from Deutz's earnings presentation, Mar 16, 2023
Slide 1: DEUTZ FY 2022 Analyst & Investor Presentation
DEUTZ | FY 2022 – Analyst & Investor Presentation – March 16, 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: Highlights 2022 & Strategy Update
Agenda Agenda Highlights 2022 & Strategy Update Dr. Sebastian C. Schulte | CEO 3
Slide 4: Strong performance in a volatile environment
Strong performance in a volatile environment New orders Unit sales Revenue Adjusted EBIT1 +€52.2 million to DEUTZ Classic engines +1.0% to +20.8% to €89.4 million +12.7% to €2.03 billion €1.95 billion EBIT margin1 4.6% (+2.3pp) Book-to-bill ratio: 1.04 181,249 units Classic segment 6.8% (+3.0pp) Pro
Slide 5: Classic segment: best result in recent history
Classic segment: best result in recent history Revenue (pro forma) € million 1,779 1,841 1,953 1,479 1,617 1,296 1,755 1,809 1,563 1,889 1,475 1,254 ▪ Classic segment with highest sales level 5 24 32 42 54 64 in past 6 years 2017 2018 2019 2020 2021 2022 ▪ Classic segment standalone with EBIT before
Slide 6: Basis for our way forward: Market & technology perspective
Basis for our way forward: Market & technology perspective Other Technology Technology Electrification change (Battery) change ~200,000 engines Fuel cell >4L H2 engine (>110 Adapted KW) E/Synfuel combustion <4L engines (<110 Diesel KW) D-engines Starting point 2030 2040 2050 Technology distribution
Slide 7: Our positioning
Our positioning Continue to provide powertrains that move vehicles and machinery around the world, on construction sites, roads and farmland – for which we will continue to need the combustion engine Committed to becoming climate-neutral by 2050, enabling our customers to successfully transform Use
Slide 8: We ensure the world keeps moving – for 160 years and in the future
We ensure the world keeps moving – for 160 years and in the future WE ENSURE THE WORLD KEEPS MOVING 8 DEUTZ FY2022 | March 16, 2023
Slide 9: Our way forward: the “Dual+” strategy
Our way forward: the “Dual+” strategy I II Grow CLASSIC market Build a GREEN based on strong ecosystem with relevant performance and products and technologies consolidation + Expand profitable SERVICE business around the world 9 DEUTZ FY2022 | March 16, 2023
Slide 10: The goal of CLASSIC DEUTZ: performance and growth
The goal of CLASSIC DEUTZ: performance and growth Classic Improve performance Boost our performance significantly, by making more efficient use of existing capacities, simplifying our internal processes and optimizing our portfolio – thereby improving delivery performance and becoming an even more “
Slide 11: Performance: 2022 profitability hike based on market-oriented pricing
Performance: 2022 profitability hike based on market-oriented pricing Classic Environment 2022 ▪ Early reaction by management in February 2022 to Energy prices Raw material prices systematically tackle this challenge ▪ Target of 8-12% price increase achieved by end of 2022 ▪ Outlook: for engines <4l
Slide 12: Consolidation: Cooperation with Daimler Truck
Consolidation: Cooperation with Daimler Truck Classic ▪ DEUTZ takes over IP/licenses of medium-duty (MDEG) and heavy-duty (HDEP) engines for development & production ▪ Cooperation allows DEUTZ to tap into new customer groups: on-highway and off-highway customers ▪ Future-proof architecture and desig
Slide 13: The goal of GREEN DEUTZ: guarantee the future of DEUTZ
The goal of GREEN DEUTZ: guarantee the future of DEUTZ Green Build on existing We build on our existing capabilities (e.g., Torqeedo, capabilities Futavis, E-DEUTZ, H2 engine) and explore how we can improve and scale to grow profitably. Technology- Explore market We will develop market-oriented by s
Slide 14: Good progress in GREEN
Good progress in GREEN Green First H2 GenSet in pilot application Joined HyCET project Prototyp of first LOI for small series of H2 First PowerTree serial order concrete e-pump GenSets for China 14 DEUTZ FY2022 | March 16, 2023
Slide 15: How we will reach our ambitious service growth targets
How we will reach our ambitious service growth targets Service Service growth targets DEUTZ Service approach Further push inorganic expansion ~€600M ▪ Continue to expand via acquisitions and alliances SERVICE ▪ Take over maintenance activities revenue ▪ Acquisitions FY2022: Ireland (South Coast Dies
Slide 16: New mid-term guidance based on our Dual+ Strategy
New mid-term guidance based on our Dual+ Strategy Guidance for FY2025 Revenue > €2.5 billion Service revenue ~ €600 million Adjusted EBIT 6.0% to 7.0% margin1 16 1 Before exceptional items. DEUTZ FY2022 | March 16, 2023
Slide 17: Agenda: FY 2022 in numbers
Agenda Agenda FY 2022 in numbers Bild auszutauschen Timo Krutoff | CFO 17
Slide 18: Results for 2022
Results for 2022 New orders Unit sales Revenue € million Units € million +1.0% +16.6% +20.8% 234,682 2,012.6 2,033.6 201,283 1,953.4 53,433 1,617.3 40,401 < Thereof Torqeedo 2021 2022 2021 2022 < 2021 2022 ▪ New orders close to the high prior-year level – book-to-bill ratio of 1.04 (2021: 1.24) ▪ In
Slide 19: Further successful expansion of the service business
Further successful expansion of the service business Revenue New orders Orders on hand € million € million € million +11.6% +10.0% +22.1% Our new service target: 403.1 449.8 412.1 453.5 35.7 43.6 approx. €600 million revenue in 2025 2021 2022 2021 2022 2021 2022 ▪ Particularly strong growth of busin
Slide 20: Revenue for 2022 in detail
Revenue for 2022 in detail Revenue breakdown by region Revenue breakdown by application segment 2022 (2021) 2022 (2021) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (4%) 38% (40%) 6% (7%) 30% (30%) €66.1 million €746.7 million €116.2 million €577.0 million +1
Slide 21: Strong improvement in profitability
Strong improvement in profitability Adjusted EBIT (€ million) ▪ Adjusted EBIT1 improved to €89.4 million in 2022 EBIT margin before exceptional items (2021: €37.2 million) due to: − Economies of scale +€17.2 million / +2.8pp qoq − Market-oriented pricing policy − Cost-saving measures 26.8 23.3 23.5
Slide 22: 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 +10.3% +61.2% +36.8% 5.1% 116.9 17.7% 4.6% 90.8 15.7% 346.3 82.3 72.5 54.3 17.7 253.2 2021 2022 2021 2022 Dec. 31, 2021 Dec. 31, 2022 R&D ratio1 Thereof addit
Slide 23: 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 -€35.6 million -€38.2 million -€84.5 million 93.3 21.6 -61.3 57.7 -79.7 -94.6 -16.6 -164.2 2021 2022 2021 2022 Dec. 31, 2021 Dec. 31, 2022 Thereof lease liabilities ▪ Fall
Slide 24: Solid balance sheet – proposed dividend of €0.15
Solid balance sheet – proposed dividend of €0.15 Equity and equity ratio Net debt/EBITDA Dividend per share € million € 1,475.4 1,290.1 0.15 0.15 45.6% 45.3% 668.8 2.6 588.4 0.6 0.9 0.1 0 0 1 Dec. 31, 2021 Dec. 31, 2022 2019 2020 2021 2022 2019 2020 2021 2022 Total assets Equity Equity ratio ▪ Equit
Slide 25: Results for 2022 | Classic segment
Results for 2022 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million +1.7% +12.7% +20.9% +118.2% 181,249 128.1 1,981.1 1,889.4 1,947.7 160,880 1,563.4 6.8% 58.7 3.8% 2021 2022 2021 2022 2021 2022 2021 2022 ▪ Small year-on-year increase in new orde
Slide 26: Results for 2022 | Green segment
Results for 2022 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million -19.1% +32.3% +18.7% -75.0% 64.9 53,433 64.0 52.5 40,403 53.9 -41.6% -22.4 -61.3% -39.2 2021 2022 2021 2022 2021 2022 2022 2022 ▪ Fall in new orders compared with the high volume
Slide 27: Agenda: Guidance for 2023
Agenda Agenda Guidance for 2023 Dr. Sebastian C. Schulte | CEO 27
Slide 28: Global market growth in 2023
Global market growth in 2023 Agricultural Construction Material Heavy-duty machinery equipment handling trucks EMEA – Americas – APAC Positive outlook underpinned by end markets 28 Sources: VDMA “Geschäftsklima und Marktentwicklung”, Nov. 2022, Power Systems Research, Jan. 2023, China Automotive Ind
Slide 29: Moderate growth expected: Guidance for 2023
Moderate growth expected Guidance for 2023 ▪ Solid order backlog provides visibility for first 7-8 months 175,000 to 195,000 Unit sales ▪ Price increases in FY2022 DEUTZ engines1 should have a positive roll-over effect Revenue €1.9 billion to €2.1 billion ▪ But cost increases in FY2022 will have a n
Slide 30: Any questions? Thank you for your attention!
Thank you for your attention! Any questions?
Slide 31: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact 2022 Annual General Meeting April 27, 2023 Christian Ludwig, CFA (virtual) SVP Communications & IR 2023 Q1 2023 quarterly statement May 4, 2023 +49 (0)221 822 3600 christian.ludwig@deutz.com H1 2023 interim report August 10, 2023 Foll