Deutz Ag · XETR:DEZ
Deutz — Merger or Acquisition (June 2024)
19 slides from Deutz's merger presentation, Jun 28, 2024
Slide 1: Acquisition of Blue Star Power Systems
Acquisition of Blue Star Power Systems June 28, 2024
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: Today's topics
Acquisition of Blue Star Power Systems Today‘s topics ▪ Market perspective ▪ North American manufacturer of decentralized energy supply gensets ▪ Privately run ▪ Introduction Blue Star Power ▪ Based in North Mankato, Minnesota Systems ▪ Founded in 2004 ▪ Strategic rationale DEUTZ 3 Acquisition Blue
Slide 4: Doubling of global electricity demand & changes in the energy mix lead to growth
Doubling of global electricity demand & changes in the energy mix lead to growth in decentralized energy supply Global energy supply (in EJ) ▪ Doubling of global electricity demand by 2050 +122% CAGR and increasing share of renewable energies, but 33.974 no expansion of grids at the same pace ▪ Grow
Slide 5: North America is a particularly attractive and relevant market for decentralized power supply
North America is a particularly attractive and relevant market for decentralized power supply Market for gensets in North America (in USD billion) +7% p.a. 14.4 ▪ North American market accounts 5% Rental for almost half of the global 7% equipment genset market, which will grow to +7% p.a. Micro USD
Slide 6: Growth driver for decentralized electricity supply
Growth driver for decentralized electricity supply Extreme Insufficient Renewable Relocation of (Public) weather events infrastructure energies production investments More frequent Outdated power grids Increasing demand for Relocation of Increasing investments occurrence of severe and increasing dem
Slide 7: Blue Star Power Systems is one of the top genset producers in the North American market
Blue Star Power Systems is one of the top 10 genset producers in the North American market ▪ Production and sales of diesel and gas-powered Revenue distribution 2023 gensets from 20 to 2,000 kWe ▪ 110 employees Region Canada: 15% ▪ Expected revenues 2024: >100 USD million USA: 85% Customer 9.5% Dire
Slide 8: Product portfolio of Blue Star Power Systems
Product portfolio of Blue Star Power Systems Products Revenue share Diesel gensets, 20–2,000 kWe ▪ Different engines according to customer requirements ▪ Partners include Perkins, Volvo Penta, John Deere & Mitsubishi 70% ▪ At least EPA standards; Housing, fuel tanks and other accessories available G
Slide 9: Blue Star Power Systems has achieved a strong development in recent years
Blue Star Power Systems has achieved a strong development in recent years and has clear growth prospects Revenue development Blue Star Power Systems (in USD million) ▪ Growth with 15% p.a. in recent years above growth rate of the North American market >150 ▪ Revenue almost doubled since 2019, EBITDA
Slide 10: Key parameters of our agreement
Key parameters of our agreement ▪ DEUTZ acquires 100% of the shares in Blue Star Power Systems ▪ Closing of the transaction is expected in the second half of 2024 ▪ The parties have agreed not to disclose the terms and conditions of the acquisition. The valuation is within the usual market parameter
Slide 11: Acquisition continues implementation of our DUAL+ strategy
With the acquisition of Blue Star Power Systems, we are continuing to consistently implement our "DUAL+" strategy Why "Energy" for DEUTZ Strengthening all areas of "DUAL+" ▪ Tapping into the attractive and less cyclical ▪ CLASSIC: Further strengthening of the DEUTZ energy market and establishment of
Slide 12: Solution provider: We improve our position in the value chain
Solution provider: We improve our position in the value chain Electricians and Aftermarket parts Engine Genset system Sales/Dealers energy End users manufacturer builder consultants Maintenance Manufacturers of Assembling genset Selling finished Installing gensets for Use gensets for Service and rep
Slide 13: The integration of Blue Star Power Systems opens up growth opportunities for DEUTZ
The integration of Blue Star Power Systems opens up growth opportunities for DEUTZ Synergies and further expansion of Strengthening DEUTZ's fast-growing business in the USA US business (e.g. access to customers and talents) Transfer to other Expansion of the genset business globally, regions e.g. in
Slide 14: Specific examples of additional growth
Specific examples of additional growth Transfer to other regions New technologies & business models Expansion of Scaling of H2 gensets MAGIDEUTZ based on pilot projects in outside Morocco the USA and small series in China Scaling in Southeast Development of new, hybrid Asia based on existing solutio
Slide 15: First step in the systematic development of the DEUTZ Energy business
The acquisition of Blue Star Power Systems is the first step in the systematic development of the DEUTZ Energy business Ambition for DEUTZ Energy (in EUR million, indicative) >500 Organic growth: Consistent expansion of the acquired platform & synergies with existing business Green technology vector
Slide 16: Benefits for DEUTZ
Benefits for DEUTZ We are becoming more resilient The gensets business is generally less cyclical than our other markets. In addition, we are strengthening our geographical diversification (North America) and we are increasing our vertical integration, thus securing a more stable business. We partic
Slide 17: Push for defense
Push for defense The idea ▪ Exploiting growth opportunities in defense given changed geopolitical outlook globally ▪ Leveraging our strong engine expertise and brand – we were in the defense market in the past ▪ Partnering where required to gain scale and specific know-how quickly ▪ Relevant for gro
Slide 18: Broad opportunities in defense with our portfolio
Broad opportunities in defense with our portfolio Mapping the current and future DEUTZ defense portfolio with defense applications Defense Playing Fields Mobile ** Stationary Classic Next Gen Defense Defense TCD Personnel engines engines engines * Artillery Mobile applications between 100 kW Carrier
Slide 19: Thank you. Q&A
Thank you. Q&A DEUTZ AG Ottostrasse 1 51149 Cologne-Porz (Eil) Tel: +49 (0) 221 822-0 Email: info@deutz.com www.deutz.com