Slide 1: German Equity Forum
GERMAN EQUITY FORUM Dr Helmut Leube, CEO Frankfurt/Main, 10 November 2008
Slide 2: Agenda
Agenda DEUTZ overview Key financials Q1 – Q3 2008 Outlook and action programme Appendix German Equity Forum Fall 2008 10 November 2008 1
Slide 3: DEUTZ – independent manufacturer of diesel engines up to 500 kW
DEUTZ – independent manufacturer of diesel engines up to 500 kW DEUTZ Group Unit sales: 285,861 engines • Revenue: €1,524.2 • Employees: 4,617 Compact Engines DEUTZ Customised Solutions - Liquid-cooled engines < 4 liter and 4 - 8 liter - Air-cooled engines < 4 to > 8 liter - For on- und non-road-app
Slide 4: Engines for all applications (I)
Engines for all applications (I) Construction machinery Infrastructure Agricultural machinery Nutrition Commercial vehicle Convenience 3 10/07 German Equity Forum Fall 2008 10 November 2008
Slide 5: Engines for all applications (II)
Engines for all applications (II) Ground support equipment Passenger traffic Ships Recreation Gensets Energy 4 10/07 German Equity Forum Fall 2008 10 November 2008
Slide 6: DEUTZ customers – leaders in their markets
DEUTZ customers – leaders in their markets 5 02/08 German Equity Forum Fall 2008 10 November 2008
Slide 7: Competitors
Competitors Market segment Application Major competitors Mobile Machinery Construction equipment Kubota (J), Yanmar (J), Material handling equipment Perkins (UK) Ground support equipment Stationary Equipment Generator sets Perkins (UK), Cummins (USA), Pumps Caterpillar (USA) Compressors Agricultural
Slide 8: Core competence: production and assembly
Core competence: production and assembly Cologne Compact engines Ulm DEUTZ Customised Solutions Zafra Components Dalian (JV) Weifang (JV) Buenos Aires (JV) 7 08/07 German Equity Forum Fall 2008 10 November 2008
Slide 9: Agenda
Agenda DEUTZ overview Key financials Q1 – Q3 2008 Outlook and action programme Appendix German Equity Forum Fall 2008 10 November 2008 8
Slide 10: Overview Q1 – Q3 2008 (I)
Overview Q1 – Q3 2008 (I) Rapidly deteriorating market environment since mid-2008 - Financial crisis is clearly affecting real economy - Pace of economic downturn almost unprecedented - Very cautious approach amongst DEUTZ’s customers: sharp fall in new orders and cancellations of existing orders
Slide 11: Overview Q1 – Q3 2008 (II)
Overview Q1 – Q3 2008 (II) EBIT impacted by decline in unit sales, especially of compact engines in Q3, and higher cost of materials: - DEUTZ Group €43.9 million (€71.0 million) - Compact Engines incl. DDE €9.0 million (€34.1 million) Start-up losses DDE €7.0 million (€2.2 million) - DEUTZ Customi
Slide 12: Overview: new orders
Overview: new orders € million -5.3% -15.5% 1,215.4 1,150.9 292.0 276.6 923.4 874.3 381.0 321.8 99.2 83.5 281.8 238.3 Q1-Q3 2007 Q1-Q3 2008 Q3 2007 Q3 2008 Economic downturn is affecting DEUTZ’s business environment, especially in compact engines By application segment, Mobile Machinery with str
Slide 13: Overview: unit sales
Overview: unit sales +0.5% -18.1% 206,410 207,491 25,100 24,107 181,310 183,384 71,791 10,006 58,804 61,785 7,543 51,261 Q1-Q3 2007 Q1-Q3 2008 Q3 2007 Q3 2008 Unit sales flat after 9 months; supported by volume growth in H1 Q3: fall in unit sales, especially in compact engines < 4 litres Decre
Slide 14: Overview: revenue
Overview: revenue € million +7.2% -7.4% 1,180.3 1,100.7 257.9 238.1 383.0 354.8 922.4 862.6 88.6 84.9 294.4 269.9 Q1-Q3 2007 Q1-Q3 2008 Q3 2007 Q3 2008 Increase in revenue resulting from positive development in H1 Decline in Q3 most pronounced in Mobile Machinery (construction equipment, materia
Slide 15: Revenue by region
Revenue by region Q1-Q3 2008 (Q1-Q3 2007 / change in %) Africa/Middle East €58.1 million (-1.9%) Germany Asia-Pacific €282.7 million (+21.3%) €86.9 million (-1.8%) €1,180.3 million (€1,100.7 million) Americas €145.3 million (-7.3%) Rest of Europe €607.3 million (+7.8%) German Equity Forum Fall 2008
Slide 16: Compact Engines: segment overview
Compact Engines: segment overview € million Q1-Q3 Q1-Q3 Change € million Q3 Q3 Change 2008 2007 (%) 2008 2007 (%) New orders 874.3 923.4 -5.3 New orders 238.3 281.8 -15.4 Unit sales (no.) 183,384 181,310 1.1 Unit sales (no.) 51,261 61,785 -17.0 Revenue 922.4 862.6 6.9 Revenue 269.9 294.4 -8.3 EBIT 9
Slide 17: Compact Engines: revenue by application segment
Compact Engines: revenue by application segment Q1-Q3 2008 (Q1-Q3 2007 / change in %) Other €12.9 million Mobile Machinery (+2.4%) €380.9 million (-0.3%) Service €76.9 million (+15.6%) €922.4 million Agricultural (€862.6 million) Machinery €132.8 million (+51.9%) Stationary Equipment Automotive €141
Slide 18: DEUTZ Customised Solutions: segment overview
DEUTZ Customised Solutions: segment overview € million Q1-Q3 Q1-Q3 Change € million Q3 Q3 Change 2008 2007 (%) 2008 2007 (%) New orders 276.6 292.0 -5.3 New orders 83.5 99.2 -15.8 Unit sales (no.) 24,107 25,100 -4.0 Unit sales (no.) 7,543 10,006 -24.6 Revenue 257.9 238.1 8.3 Revenue 84.9 88.6 -4.2 E
Slide 19: DEUTZ Customised Solutions: revenue by application segment
DEUTZ Customised Solutions: revenue by application segment Q1-Q3 2008 (Q1-Q3 2007 / change in %) Agricultural Machinery Service €7.6 million (-49.3%) €84.6 million (+2.4%) Other €13.2 (+6.5%) €257.9 million Automotive (€238.1 million) €35.8 million (+18.5%) Stationary Equipment Mobile Machinery €61.
Slide 20: Agenda
Agenda DEUTZ overview Key financials Q1 – Q3 2008 Outlook and action programme Appendix German Equity Forum Fall 2008 10 November 2008 19
Slide 21: Outlook reflecting rapidly changing global market conditions
Outlook reflecting rapidly changing global market conditions Outlook 2008 Unit sales (DEUTZ Group) ~ 260,000 Revenue growth (%) up by as much as 2% EBIT margin (%) ~ 2% R&D (€ million) 90 Unit sales (DEUTZ Dalian) ~ 100,000 Revenue (DEUTZ Dalian, € million) ~ 240 Î Reliability of forecast impacted b
Slide 22: DEUTZ prepares its business to withstand tough market conditions
DEUTZ prepares its business to withstand tough market conditions Challenges Key aspects of DEUTZ's action programme The financial crisis is now affecting the Improve profitability in new engines business real economy. Ensure that major new products are launched The effects of current market
Slide 23: DEUTZ roundup
DEUTZ roundup DEUTZ is an independent diesel manufacturer focused on compact diesel engines up to 500 kW Regarding the non-captive diesel market, we have top global market positions, especially in the applications segments Mobile Machinery and Stationary Equipment As part of the internationali
Slide 24: Agenda
Agenda DEUTZ overview Key financials Q1 – Q3 2008 Outlook and action programme Appendix German Equity Forum Fall 2008 10 November 2008 23
Slide 25: Product overview
Product overview Mobile Agricultural Stationary Automotive Marine Machinery Machinery Equipment 2008/2009 9 – 50 kW 2010 50 – 74,9 kW 2011 22 – 74,9 kW 2012 60 – 155 kW 2013 2V 74,9 – 200 kW 2013 4V 118 – 243 kW 912/913 24 – 149 kW 914 38,5 – 176 kW
Slide 26: Key financial data
Key financial data € million Q1-Q3 2008 Q1-Q3 2007 Change (%) Revenue 1,180,3 1,100.7 7.2 EBITDA 97.9 119.6 -18.1 EBIT 43.9 71.0 -38.2 EBIT margin before one-off items (%) 3.7 6.5 -- Net income on continuing operations 28.0 35.6 -21.3 Basic earnings per share (€) 0.23 0.31 -25.8 Number of employees
Slide 27: Key balance sheet figures
Key balance sheet figures € million 30 Sep 2008 31 Dec 2007 Change (%) Total assets 1,333.8 1,378.6 -3.2 Equity 546.5 557.1 -1.9 Equity ratio (%) 41.0 40.4 -- Cash flow from operating activities (continuing operations) 77.2 -38.7 -- Net financial position 25.6 89.7 -71.5 Working capital 242.9 196.9
Slide 28: Segment overview Q1 – Q3 2008
Segment overview Q1 – Q3 2008 New orders (€ million) Q1-Q3 Q1-Q3 Change Unit sales (no.) Q1-Q3 Q1-Q3 Change 2008 2007 (%) 2008 2007 (%) Compact Engines 874.3 923.4 -5.3 Compact Engines 183,384 181,310 1.1 DEUTZ Customised Solutions 276.6 292.0 -5.3 DEUTZ Customised Solutions 24,107 25,100 -4.0 Total
Slide 29: Segment overview Q3 2008
Segment overview Q3 2008 New orders (€ million) Q3 Q3 Change Unit sales (no.) Q3 Q3 Change 2008 2007 (%) 2008 2007 (%) Compact Engines 238.3 281.8 -15.4 Compact Engines 51,261 61,785 -17.0 DEUTZ Customised Solutions 83.5 99.2 -15.8 DEUTZ Customised Solutions 7,543 10,006 -24.6 Total 321.8 381.0 -15.
Slide 30: Financial calendar 2009
Financial calendar 2009 Annual Results Press Conference Cologne 19 March 2009 Publication of annual report for 2008 Annual Results Analysts' Meeting Frankfurt/Main 20 March 2009 Annual General Meeting Cologne 30 April 2009 Interim report on Q1 2009 7 May 2009 Conference call with analysts an
Slide 31: Contact
Contact DEUTZ AG Sandra Siegele Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Germany Tel.: +49 (0)221 822 2492 Fax: +49 (0)221 822 2498 www.deutz.com German Equity Forum Fall 2008 10 November 2008 30
Slide 32: Disclaimer
Disclaimer 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. Such discrepancies may be caused by changes in political, economic or business conditions, a decrea