Deutz Ag · XETR:DEZ
Deutz — H1 2022 Earnings Presentation
27 slides from Deutz's earnings presentation, Aug 11, 2022
Slide 1: DEUTZ – Results for H1 2022
DEUTZ – Results for H1 2022 – August 11, 2022
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 H1 2022
Agenda Agenda Overview & highlights of H1 2022 Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 3
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales Revenue Adjusted EBIT1 +€25.8 million to DEUTZ Classic engines +5% to +21% to +20% to €42.6 million €1.01 billion €930.4 million EBIT margin1 4.6% (+2.4pp) Book-to-bill ratio of 1.16 90,462 units Classic segment 6.8% (+3.5pp) Multi-pha
Slide 5: Powering Progress: four priority areas of action
Powering Progress: four priority areas of action PRIORITIES PERFORMANCE Addressing key overarching Improving commercial performance overall strategic topics and in individual areas POWERING PROGRESS POTENTIAL PASSION Improving technological capabilities Putting our values into practice, improving ou
Slide 6: Performance initiative: sharing the pain
Performance initiative: sharing the pain Raw materials 1 Ongoing market and price monitoring Energy 4 Dialogue with customers on sharing the pain Logistics 3 Impact assessment 5 Management bodies derive appropriate measures 2 Dialogue with suppliers Sharing the pain Process established to spread bur
Slide 7: Performance initiative: gradually passing on price increases
Performance initiative: gradually passing on price increases 8–12% increase in prices in Energy prices Raw material prices Logistics costs Product costs the new engine business in 2022 Increased costs cannot be passed on to customers immediately due to the high level of orders on hand Ongoing mo
Slide 8: Performance initiative: diversification of customer base
Performance initiative: diversification of customer base Number of customers by customer group: target version Sharpening the focus of sales activities Expanding the customer base in groups A, B, and C with 18 unit sales volumes of more than 2,500 engines per year 14 13 13 Reduction in the dep
Slide 9: Performance initiative: optimizing the existing engine portfolio
Performance initiative: optimizing the existing engine portfolio Engine variants Proportion of unit sales Status quo Portfolio currently comprises around 2,000 customer specific ~15% engine variants Growing complexity in the supply chain and in other areas such ~80% as purchasing and production
Slide 10: Progress with hydrogen strategy
Progress with hydrogen strategy Stationary equipment for power generation launched as first pilot application for TCG 7.8 H2 H2 genset put into service at RheinEnergie's cogeneration plant in the Niehl district of Cologne The combination of the TCG 7.8 H2 and a generator will deliver electric po
Slide 11: Agenda: H1 2022 in numbers
Agenda Agenda H1 2022 in numbers Christian Ludwig | SVP Communications & IR 11
Slide 12: Results for H1 2022
Results for H1 2022 New orders Unit sales Revenue € million Units € million +4.7% +16.1% +20.8% 108,741 1,077.6 93,627 1,028.8 18,279 930.4 770.2 18,196 < Thereof Torqeedo H1 2021 H1 2022 H1 2021 H1 2022 < H1 2021 H1 2022 Solid rise in new orders – book-to-bill ratio of 1.16 (H1 2021: 1.34) Rise
Slide 13: Further successful expansion of the profitable service business
Further successful expansion of the profitable service business Revenue New orders Orders on hand € million € million € million +14.2% +12.2% +4.3% Our service target: 195.4 223.2 205.0 230.0 35.1 36.6 approx. €500 million revenue in 2025 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Particularl
Slide 14: Revenue for H1 2022 in detail
Revenue for H1 2022 in detail Revenue breakdown by region Revenue breakdown by application segment H1 2022 (H1 2021) H1 2022 (H1 2021) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (3%) 40% (41%) 5% (7%) 30% (31%) €30.2 million €368.7 million €48.0 million €27
Slide 15: Profitability continues to improve
Profitability continues to improve Adjusted EBIT (€ million) Adjusted EBIT1 improved to €42.6 million EBIT margin before exceptional items in H1 2022 (H1 2021: €16.8 million) due to: − increased volume of business, bringing economies of scale +€10.8 million / +1.9pp qoq − effects of cost savings −
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 +18.8% -21.1% +22.9% 5.1% 5.0% 33.6 17.5% 46.8 26.5 15.7% 10.4 311.3 39.4 3.2 253.2 H1 2021 H1 2022 H1 2021 H1 2022 Dec. 31, 2021 Jun. 30, 2022 R&D ratio1 The
Slide 17: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net debt € million € million € million - - -€30.1 million €34.4 million €43.5 million 44.7 9.7 -61.3 14.6 -56.4 -79.7 -24.7 -123.2 H1 2021 H1 2022 H1 2021 H1 2022 Dec. 31, 2021 Jun. 30, 2022 Thereof lease liabil
Slide 18: Solid balance sheet – equity ratio remains high
Solid balance sheet – equity ratio remains high Equity and equity ratio Equity ratio down slightly despite the rise in equity, because the € million balance sheet grew at a faster rate than equity due to the increase in current assets and current liabilities. 1,396.6 1,290.1 Restructuring of the
Slide 19: Results for H1 2022 | Classic segment
Results for H1 2022 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million +6.1% +19.9% +21.1% +147.2% 1,050.6 990.5 90,459 61.3 75,431 900.1 743.2 6.8% 24.8 3.3% H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Strong growth in new
Slide 20: Results for H1 2022 | Green segment
Results for H1 2022 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million -29.5% +0.5% +12.2% -118.1% 38.3 18,196 18,282 30.3 27.0 27.0 -30.7% -8.3 -59.7% -18.1 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Fall in new orders comp
Slide 21: Agenda: Guidance
Agenda Agenda Guidance Dr. Sebastian C. Schulte | CEO & CFO (ad interim) 21
Slide 22: Gas supply
Gas supply Cologne-Porz site: Preparations complete for switching the heating supply from gas to heating oil in the short term Ulm site: Alternative concept developed to assist the switch to liquefied petroleum gas (LPG) – difficult procurement market Large suppliers are being monitored closel
Slide 23: DEUTZ is increasingly focusing on using green energy
DEUTZ is increasingly focusing on using green energy Green electricity used at all DEUTZ AG sites since 2021 Our CO2 target: -20% First photovoltaic system installed on site of the fire station at the Cologne site; further installation on production buildings has been initiated DEUTZ subsidiar
Slide 24: Global market growth for 2022 as at July (vs. January 2022)
Global market growth for 2022 as at July (vs. January 2022) YoY change in unit sales (%) Europe North America China Construction 0 to +5 (+5 to +10) +5 to +10 -10 to -5 (0 to +5) Equipment Material Handling 0 to +5 (+5 to +10) +5 to +10 +5 to +10 (+10 to +15) Agricultural Machinery 0 to +5 +5 to +10
Slide 25: Guidance for 2022 still subject to change
Guidance for 2022 still subject to change Guidance for 2022 (as at February 2022) Unit sales 165,000 to 180,000 DEUTZ engines1 Revenue €1.7 billion to €1.85 billion (Classic: €1.6 billion to €1.75 billion / Green: €75 million to €100 million) EBIT margin before exceptional items 3.5% to 5.5% (Classi
Slide 26: Any questions? Thank you for your attention!
Thank you for your attention! Any questions?
Slide 27: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact Q3 2022 quarterly statement November 9, 2022 Christian Ludwig, CFA SVP Communications & IR 2022 annual report March 16, 2023 +49 (0)221 822 3600 Annual General Meeting April 27, 2023 christian.ludwig@deutz.com Follow us: 2021 ONLINE A