Deutz Ag · XETR:DEZ

Deutz — Q1 2024 Earnings Presentation

24 slides from Deutz's earnings presentation, Apr 30, 2024

  1. Slide 1: DEUTZ Results for Q1 2024

    DEUTZ Results for Q1 2024 April 30, 2024

  2. 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.

  3. Slide 3: Overview of Q1 2024 & strategy update

    AGENDA Overview of Q1 2024 & strategy update Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 3 DEUTZ Results for Q1 2024 | April 30, 2024

  4. Slide 4: Solid performance in Q1 2024 against a weak economic backdrop

    Solid performance in Q1 2024 against a weak economic backdrop New orders Revenue EBIT margin1 €419 million €455 million 6.1% -18.7% year on year due to weak -10.3% on prior-year period; Business increasingly robust economic conditions and product mix and price effects even in a tough economic climat

  5. Slide 5: Dual+ strategy making DEUTZ Group more resilient

    Dual+ strategy making DEUTZ Group more resilient Revenue growth and EBIT margin before exceptional items1 (Both are percentage figures; revenue growth is the increase on the prior-year period) In the past: Dual+ strategy: Revenue and EBIT margin follow same trajectory Greater resilience 8 40 6 20 4

  6. Slide 6: Growth of service activities makes business model less cyclical

    Growth of service activities makes business model less cyclical Service business revenue € million 600 >500 CAGR +10% CAGR +5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024e 2025e 24% of 28% of revenue in Q1 2024 revenue €125.9 million – increase both absolute and relative 6 DEUTZ

  7. Slide 7: Focus switches from pricing in sales to cutting costs in purchasing

    Focus switches from pricing in sales to cutting costs in purchasing Already boosting earnings: Greater focus: Pricing & production Material cost reduction and capital allocation +  Portfolio optimization  Strategic focus on reducing material costs (direct and indirect)  Expansion of the DEUTZ Pow

  8. Slide 8: Comprehensive program initiated in purchasing

    Comprehensive program initiated in purchasing Purchasing volume and targets for 2024 Simplified representation -4%  Holistic cost reduction program: 100% direct material, indirect materia CAPEX  Cost reduction through internal 96% and external initiatives, e.g. demand management, target cost analy

  9. Slide 9: Sale of Torqeedo completed

    Sale of Torqeedo completed  Torqeedo sold to Yamaha Motors – its true ‘best owner’  Torqeedo’s EBIT in 2023 a net loss of around €23 million  Important step in the ongoing reorganization and refocusing of the Green segment  Greater focus on development of drive solutions that meet the market’s n

  10. Slide 10: Dual+ strategy: We are making progress in all areas

    Dual+ strategy: We are making progress in all areas I II  Focus on performance  Sale of Torqeedo completed on  Partnership agreement April 3, 2024, book gain to be with Rolls-Royce Power recognized in Q2 2024 (low Systems (RRPS) signed double-digit millions of euros) on March 28, 2024; deal  Ful

  11. Slide 11: 2023 in figures

    AGENDA 2023 in figures Timo Krutoff Dr. Sebastian C. Schulte | CEO 11 DEUTZ Results for Q1 2024 | April 30, 2024

  12. Slide 12: Results for Q1 2024

    Results for Q1 20241 New orders Unit sales Revenue € million Units € million -19% -17% -10% 515.8 46,110 507.0 454.7 419.2 38,242 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024  Book-to-bill ratio at 0.92 (Q1 2023: 1.02) and orders on hand2 at €414.9 million (March 31, 2023: €772.5 million; Decemb

  13. Slide 13: Revenue in detail

    Revenue in detail1 Revenue breakdown by application segment Revenue breakdown by region Q1 2024 (Q1 2023) Q1 2024 (Q1 2023) Stationary Equipment Miscellaneous Africa/Middle East Europe 6% (8%) 3% (4%) 4% (3%) (excl. Germany) €28.1 million €14.3 million €16.7 million 35% (39%) -29.2% -30.2% +0.6% €15

  14. Slide 14: Profitability still robust despite decline in revenue

    Profitability still robust despite decline in revenue1 EBIT margin before exceptional items (%) Adjusted EBIT (€ million) 7.3% 7.0% 7.0% 6.7% 6.1%  Profitability within the guidance range 5.0–6.5%  Robust profitability despite fall in revenue: ▪ Expansion of the profitable service business ▪ Marke

  15. Slide 15: R&D spending, capital expenditure, and working capital

    R&D spending, capital expenditure, and working capital1 Net R&D spending2 Capital expenditure2,3 Working capital € million € million € million +13.9% +2.7% 25.4 -48.3 379.8 389.9 22.3 68.3 1.1 4.4% 5.6% 18.4% 19.4% 20.0 4.9 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Dec. 31, 2023 Mar. 31, 2024 R&D ratio3 There

  16. Slide 16: Changes in cash flow and net financial position

    Entire Group: Changes in cash flow and net financial position1 Cash flow from Free cash flow Free cash flow from Net debt operating activities before M&A2 continuing operations € million € million € million before M&A2 € million -10.5 31.0 -6.2 -9.2 Thereof leases 20.5 -12.2 14.3 Thereof leases 10.8

  17. Slide 17: Results for Q1 2024: Classic and Green segments

    Results for Q1 2024 Classic and Green segments Classic Green Q1 2023 Q1 2024 Q1 2023 Q1 2024  Classic segment currently dominates the New orders Group’s financial results 515.0 418.3 0.8 0.9 € million  Green segment registers increases in new orders, unit sales, and revenue – Unit sales1 46,104 38

  18. Slide 18: Outlook for 2024

    AGENDA Outlook for 2024 Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 18 DEUTZ Results for Q1 2024 | April 30, 2024

  19. Slide 19: Q1 2024: Key operational and strategic developments

    Q1 2024: Key operational and strategic developments1 New orders Unit sales Revenue EBIT margin2 -18.7% DEUTZ Classic engines -10.3% to -1.2 pp to €419.2 million -17.5% to €454.7 million 6.1% Book-to-bill ratio: 0.92 38,054 units Adjusted EBIT: €27.7 million (-€9.1 million) Free cash flow Partnership

  20. Slide 20: Guidance for 2024 remains the same

    Guidance for 2024 remains the same 2023 2024e  Fall in demand reflected in 186,718 160,000 to 180,000 expected unit sales Unit sales DEUTZ engines DEUTZ engines  Agreement with Rolls-Royce Power Systems should begin to have a positive impact on revenue Revenue €2.1 billion €1.9 billion to €2.1 bil

  21. Slide 21: Medium-term targets based on the Dual+ strategy

    Medium-term targets based on the Dual+ strategy I II Outlook for 2025 Revenue > €2.5 billion Service business approx. share of revenue €600 million + Adjusted 6.0% to 7.0% EBIT margin1 DEUTZ confirms its medium-term targets for 2025 21 1 Before exceptional items. DEUTZ Results for Q1 2024 | April 30

  22. Slide 22: Thank you for your time. Any questions?

    Thank you for your time. Any questions?

  23. Slide 23: Financial calendar and contact details

    Financial calendar and contact details Financial calendar Contact 2024 Annual General Meeting May 8, 2024 Investor Relations (virtual) +49 (0) 221 822 3600 2024 H1 2024 interim report August 8, 2024 ir@deutz.com Q3 2024 quarterly statement November 7, 2024 Follow us: 2023 ONLINE ANNUAL REPORT DEUTZ

  24. Slide 24: DEUTZ Results for Q1 2024 | April 30, 2024

    DEUTZ Results for Q1 2024 | April 30, 2024

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