Deutz Ag · XETR:DEZ
Deutz — Q3 2012 Earnings Presentation
30 slides from Deutz's earnings presentation, Nov 8, 2012
Slide 1: Conference Call Q1-Q3 2012
Conference Call Q1-Q3 2012 8 November 2012 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review Q1-Q3 2012 Outlook Annex Conference Call Q1-Q3 2012 8 November 2012 2
Slide 3: Highlights of Q1-Q3 2012
Highlights of Q1-Q3 2012 Sales figures influenced by economic slowdown and seasonal effects - Unit sales decreased by 21.5% yoy due to weaker market conditions in Europe and China - Revenue declined 13.7% yoy; higher value of new engines partially compensated lower unit sales - Order intake 17.9% be
Slide 4: Sales figures
Sales figures Order Intake Unit Sales Revenue € million Units € million -17.9% -21.5% -13.7% 168,508 1,169.8 19,293 1,123.5 232.5 132,221 243.7 969.4 960.5 13,204 213.9 216.9 149,215 937.3 119,017 879.8 746.6 752.5 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Revenue decreased b
Slide 5: Revenue development
Revenue development € million 405.5 388.1 399.4 368.7 336.0 336.9 344.1 298.1 285.9 288.4 236.4 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Strong revenue growth in 2011 Economic slowdown in Europe and China causing revenue decline; Q3 affected by plant holidays Revenue record
Slide 6: Revenue split
Revenue split Revenue split by application, Q1-Q3 2012 Revenue split by region, Q1-Q3 2012(1) (Q1-Q3 2011) (Q1-Q3 2011) Other 1% Mobile Machinery 38% Africa/Middle East 7% Europe (excl. Germany) 52% €11.1 million €363.8 million €57.5 million €507.0 million (€58.3 million) (€379.2 million) (€64.3 mil
Slide 7: EBIT
EBIT € million 69.4 34.8 24.6 36.4 39.9 11.3 3.0 0.1 15.2 12.5 -1.8 -9.5 -4.0 -8.6 -0.9 -5.8 Q1-Q3 2011 Q1-Q3 2012 Q2 2012 Q3 2012 EBIT margin 6.2% 2.5% 3.3% 1.0% Lower production volumes with negative impact on EBIT margin Negative profit contribution of JVs burdened EBIT Series start of new engine
Slide 8: Net income
Net income Q1-Q3 2011 Q1-Q3 2012 € million 69.4 -9.8 -1.2 -3.8 54.6 24.6 -8.8 -1.2 -2.4 12.2 EBIT Net interest Other Income Net EBIT Net interest Other Income Net expenses taxes taxes income expenses taxes taxes income New funding arranged at mid-year with positive effect on interest expenses Low ef
Slide 9: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million Gross R&D 81.1 expenditure Reimbursements 16.3 64.4 15.3 41.9 Net R&D expenditure 29.8 64.8 49.1 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 R&D ratio(1) 7.2% 6.6% R&D spending declined by 20.6% yoy since market Capex
Slide 10: Net financial position and working capital
Net financial position and working capital Net financial position Working capital € million 215.6 175.3 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Working 11.7% 15.7% capital ratio -97.8 -121.3 Cash and cash equivalents amount to €29.8 million Working capital ratio increased due to lower revenue, (
Slide 11: Overview of segments: Compact Engines
Overview of segments: Compact Engines Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2012 2011 in % € million 2012 2012 in % New orders 746.6 937.3 -20.3 New orders 197.8 252.3 -21.6 Unit sales 119,017 149,215 -20.2 Unit sales 34,406 43,032 -20.0 Revenue 752.5 879.8 -14.5 Revenue 217.7 271.8 -19.9 EBIT -
Slide 12: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2012 2011 in % € million 2012 2012 in % New orders 213.9 232.5 -8.0 New orders 61.7 58.7 +5.1 Unit sales 13,204 19,293 -31.6 Unit sales 3,962 4,360 -9.1 Revenue 216.9 243.7 -11.0 Revenue 70.7 72.3 -2.2 EBIT 39
Slide 13: Divestment of JV Bosch Emission Systems GmbH & Co. KG (BESG)
Divestment of JV Bosch Emission Systems GmbH & Co. KG (BESG) Former DEUTZ Partner Product range Production start Divestment participation Diesel exhaust Bosch and BESG Eberspächer 25 % aftertreatment Q2 2010 Q4 2012 (EAT) systems DEUTZ decided to sell minority stake in supplier BESG to Bosch in orde
Slide 14: Agenda
Agenda Review Q1-Q3 2012 Outlook Annex Conference Call Q1-Q3 2012 8 November 2012 14
Slide 15: Financial outlook
Financial outlook Outlook for 2012 Revenue €1.3 billion – €1.4 billion EBIT margin 3.0 % - 4.0 % In view of the difficult market environment, we have taken steps to reduce costs and improve profitability Q4 result expected to show significant improvement over Q3 2012 results expected in the lower ha
Slide 16: Agenda
Agenda Review Q1-Q3 2012 Outlook Annex Conference Call Q1-Q3 2012 8 November 2012 16
Slide 17: Summary of key financials (I)
Summary of key financials (I) € million Q1-Q3 2012 Q1-Q3 2011 Change (%) Revenue 969.4 1,123.5 -13.7 EBITDA 81.5 118.2 -31.0 EBIT 24.6 69.4 -64.6 EBIT margin (%) 2.5 6.2 -- Net income 12.2 54.6 -77.7 Basic earnings per share (€) 0.10 0.45 -77.8 Number of employees (30 September) 4,040 4,275 -5.5 Con
Slide 18: Summary of key financials (II)
Summary of key financials (II) € million Q1-Q3 2012 Q1-Q3 2011 Change (%) Total assets 1,073.1 1,118.2 -4.0 Equity 474.2 428.8 10.6 Equity ratio (%) 44.2 38.3 -- Cash flow from operating activities 34.5 64.1 -46.2 Free cash flow -60.2 -23.4 <-100.0 Net financial position -121.3 -97.8 -24.0 Working c
Slide 19: Income statement
Income statement € million Q1-Q3 2012 Q1-Q3 2011 Change (%) Revenue 969.4 1,123.5 -13.7 Changes in inventories and other own work capitalised 46.7 59.0 -20.8 Other operating income 27.4 24.8 10.5 Cost of materials -656.6 -758.3 13.4 Staff costs -205.2 -210.8 2.7 Depreciation and amortisation -56.9 -
Slide 20: Balance sheet: assets
Balance sheet: assets 30 Sep 31 Dec Change € million 2012 2011 (%) Non-current assets (excluding deferred tax assets) 633.1 623.1 1.6 Deferred tax assets 17.2 17.2 0.0 Inventories 216.9 187.6 15.6 Trade receivables 136.0 163.6 -16.9 Other receivables and assets 39.7 55.5 -28.5 Cash and cash equivale
Slide 21: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 30 Sep 31 Dec Change € million 2012 2011 (%) Equity 474.2 453.5 4.6 Provisions for pensions and other post-retirement benefits 142.9 148.5 -3.8 Deferred tax provisions 3.2 2.8 14.3 Other provisions 28.0 29.3 -4.4 Financial liabilities 149.6 119.3 25.4 Other liab
Slide 22: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1-Q3 2012 Q1-Q3 2011 EBIT 24.6 69.4 Cash flow from operating activities (total) 34.5 64.1 Capital expenditure on intangible assets, property, plant and equipment and investments -86.1 -79.3 Proceeds from the sale of non-current assets 0.7 0.4 Cash flow from
Slide 23: Overview of segments, Q1-Q3 2012
Overview of segments, Q1-Q3 2012 Q1-Q3 Q1-Q3 Change Q1-Q3 Q1-Q3 Change New orders (€ million) 2012 2011 (%) Unit sales 2012 2011 (%) Compact Engines 746.6 937.3 -20.3 Compact Engines 119,017 149,215 -20.2 DEUTZ Customised Solutions 213.9 232.5 -8.0 DEUTZ Customised Solutions 13,204 19,293 -31.6 Tota
Slide 24: Overview of segments, Q3 2012
Overview of segments, Q3 2012 Q3 Q3 Change Q3 Q3 Change New orders (€ million) 2012 2011 (%) Unit sales 2012 2011 (%) Compact Engines 197.8 299.6 -34.0 Compact Engines 34,406 54,264 -36.6 DEUTZ Customised Solutions 61.7 73.1 -15.6 DEUTZ Customised Solutions 3,962 7,046 -43.8 Total for operating acti
Slide 25: Employees
Employees 30 Sep 30 Sep Change 2012 2011 (%) Cologne 2,513 2,551 -1.5 Ulm 421 472 -10.8 Other German operations 292 294 -0.7 Germany 3,226 3,317 -2.7 Foreign operations 814 958 -15.0 DEUTZ Group 4,040 4,275 -5.5 Conference Call Q1-Q3 2012 8 November 2012 25
Slide 26: Financial position & funding
Financial position & funding € million 1,099.0 1,073.1 1,041.7 35.9% 41.3% 44.2% 453.5 474.2 374.3 204 4 45 2010 2011 9M 2012 up to up to up to up to 1 year 2 years 5 years 10 years Total assets Equity xx.x% Equity ratio Repayment schedule (residual term) New unsecured credit line (€160 million) pro
Slide 27: Shareholder structure
Shareholder structure AB Volvo 25.0% Number of Free float 66.6% shares: 120,861,783 SAME DEUTZ-FAHR 8.4% Share key data WKN 630500 ISIN DE0006305006 Reuters symbol DEZG.DE Bloomberg symbol DEZ:GR Conference Call Q1-Q3 2012 8 November 2012 27
Slide 28: Financial calendar
Financial calendar Publication of annual report for 2012 19 March 2013 Annual General Meeting Cologne 30 April 2013 Conference Call Q1-Q3 2012 8 November 2012 28
Slide 29: DEUTZ AG contact details
DEUTZ AG contact details Christian Krupp Finance & Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Germany Tel.: +49 (0)221 822 5400 Fax: +49 (0)221 822 15 5400 Email: krupp.c@deutz.com www.deutz.com Conference Call Q1-Q3 2012 8 November 2012 29
Slide 30: 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.