Deutz Ag · XETR:DEZ
Deutz — Q3 2023 Earnings Presentation
25 slides from Deutz's earnings presentation, Nov 9, 2023
Slide 1: DEUTZ Results for Q1–Q3 2023
DEUTZ – Results for Q1–Q3 2023 – November 9, 2023
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–Q3 2023
Agenda Agenda Overview & highlights of Q1–Q3 2023 Dr. Sebastian C. Schulte | CEO 3 DEUTZ 9M/2023 | 9.11.2023
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales of Revenue Adjusted DEUTZ engines EBIT1 +€26.8 million to -5.5% to +5.1% to +10.3% to €92.7 million €1,435.8 million EBIT margin1 6.0% (+1.3pp) Book-to-bill ratio: 0.93 137,559 units €1.54 billion Classic segment 8.8% (+1.9pp) Free Ear
Slide 5: Strategy progress report: Classic
Strategy progress report: Classic Classic Margin remains high thanks to success of performance initiatives New logistics concept established at headquarters in Cologne − Progress with warehouse consolidation Supply chain and production processes in Cologne have stabilized significantly Third
Slide 6: Market outlook for 2024
Market outlook for 2024 Agriculture Construction Material Stationary Machinery Equipment Handling Systems EMEA Americas APAC Stable outlook for our application areas 6 Sources: Power Systems Research, October 2023; International Rental News, October 2023. DEUTZ Q1–Q3 2023 | Nov. 9, 2023
Slide 7: Order backlog on healthy level
Order backlog on healthy level Development of order backlog – pre and post corona pandemic € million 204.518 Units sold 190.725 181.275 ~185-190k Units guidance Units sold Units sold 01 02 01 800 160.882 Units sold Customer-side increase 700 in orders to secure 600 limited capacities 500 400 02 30
Slide 8: Orders on hand and new orders normalizing
Orders on hand and new orders normalizing Engine unit sales planning Percentage of planned volume Before the pandemic, orders on hand were at a maximum of around €500 million 23% 36% Increase in orders on hand to €676 million in 2021 due to supply chain bottlenecks 38% Further rise to €773 mil
Slide 9: Strategy progress report: Green
Strategy progress report: Green Green Project pipeline being added to all the time − 10 battery-electric system projects ongoing with OEM partners − First volume production project for battery systems with Kärcher − 5 H2 projects ongoing − Order for gensets received from China Ongoing process es
Slide 10: DEUTZ receives first order for H2 gensets from China
DEUTZ receives first order for H2 gensets from China Green First order for a small-scale production run of 100 hydrogen-powered gensets agreed with Zhongguancun Summit Enviro-Protection Co., Ltd (ZGC) at the beginning of November − Gray hydrogen obtained as a by-product from coking plant gases wil
Slide 11: Strategy progress report: Service
Strategy progress report: Service Service Strong nine-month period: − Revenue increases to €360.5 million (+7.2%) − New orders climb to €360.5 million (+3.1%) Sharp rise in volume of business, particularly for parts sales and DEUTZ Xchange Ongoing expansion of the inhouse service network Acq
Slide 12: Agenda: Q1–Q3 2023 in numbers
Agenda Agenda Q1–Q3 2023 in numbers Bild auszutauschen Timo Krutoff | CFO 12 DEUTZ 9M/2023 | 9.11.2023
Slide 13: Results for Q1–Q3 2023
Results for Q1–Q3 2023 New orders Unit sales1 Revenue € million Units € million -5.5% -2.5% +10.3% 169,352 165,067 1,519.7 1,540.0 1,435.8 137,559 1,395.8 130,875 38,477 27,508 DEUTZ Torqeedo Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Year-on-year reduction in new orders, ma
Slide 14: Revenue for Q1–Q3 2023 in detail
Revenue for Q1–Q3 2023 in detail Revenue breakdown by region Revenue breakdown by application segment Q1–Q3 2023 (Q1–Q3 2022) Q1–Q3 2023 (Q1–Q3 2022) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 4% (3%) 37% (38%) 5% (6%) 28% (29%) €56.7 million €574.7 million €8
Slide 15: Strong improvement in profitability
Strong improvement in profitability Adjusted EBIT (€ million) Adjusted EBIT1,2 improved to €92.7 million EBIT margin before exceptional items (Q1–Q3 2022: €65.9 million) due to: − Higher revenue in the Classic segment +€6.9 million / +0.8pp yoy − Positive product mix effects 32.1 30.4 30.2 − Marke
Slide 16: 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 +4.4% +13.9% +23.2% 20.3% 5.0% 108.0 4.7% 17.7% 94.8 8.3 426.7 70.0 73.1 52.9 approx. 52 346.3 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Dec. 31, 2022 Sep.
Slide 17: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net financial position € million € million € million +€72.1 million +€56.4 million -€41.5 million 58.3 -13.4 -94.6 -87.8 -164.2 -13.8 -69.8 -205.7 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Dec. 31, 2022 Sep. 3
Slide 18: Equity ratio remains well above the target of 40 percent
Equity ratio remains well above the target of 40 percent Equity and equity ratio Slight rise in the equity ratio due to the growth of total assets on € million the back of capital expenditure on non-current assets as well as 1,615.0 1,475.4 the increase in inventories Two bilateral credit lines ea
Slide 19: Results for Q1–Q3 2023 | Classic segment
Results for Q1–Q3 2023 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million -5.6% +5.1% +11.9% +42.7% 132.0 1,475.7 137,531 1,504.0 1,392.6 130,870 1,344.4 92.5 8.8% 6.9% Q1–Q3 2022 Q1–Q3 2023 9M/2022 9M/2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3
Slide 20: Results for Q1–Q3 2023 | Green segment
Results for Q1–Q3 2023 | Green segment New orders Unit sales1 Revenue Adjusted EBIT € million Units € million € million -1.8% -28.4% -30.0% -50.8% 51.4 38,482 44.0 43.2 27,536 36.0 -26.2 -39.5 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Stable new orders
Slide 21: Agenda: Outlook
Agenda Agenda Outlook Dr. Sebastian C. Schulte | CEO 21 DEUTZ 9M/2023 | 9.11.2023
Slide 22: Full-year guidance for 2023
Full-year guidance for 2023 2022 2023e Unit sales 181,268 DEUTZ engines1 185,000 to 190,000 DEUTZ engines1 Revenue €1.95 billion approx. €2.1 billion Adjusted EBIT margin2 4.6% 5.3% to 5.8% Free cash flow minus €16.6 million Mid-double-digit million euro amount3 Full-year earnings guidance for 2023
Slide 23: Medium-term targets based on the Dual+ strategy
Medium-term targets based on the Dual+ strategy Outlook for 2025 Revenue > €2.5 billion Service business's approx. share of revenue €600 million Adjusted 6.0% to 7.0% EBIT margin1 Medium-term targets for 2025 confirmed 23 1 Before exceptional items. DEUTZ Q1–Q3 2023 | Nov. 9, 2023
Slide 24: Financial calendar and contact details
Financial calendar and contact details Upcoming financial dates HSBC Luxembourg Day November 16 Roadshow | London November 20 Eigenkapitalforum | Frankfurt November 28 ODDO BHF conference | virtual January 15, 2024 Kepler conference | Frankfurt January 17, 2024 HIT | Hamburg February 8, 2024 2023 an
Slide 25: Any questions?
Thank you for your attention! Any questions?