Deutz Ag · XETR:DEZ

Deutz — Investor Day (September 2018)

49 slides from Deutz's investor day presentation, Sep 18, 2018

Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 18 September 2018 COLOGNE GERMANY Dr. Frank Hiller, CEO
Slide 2: DEUTZ Environment: Mega Trends in our Industry
DEUTZ Environment Mega Trends in our Industry Sustainability Disruption Gas Downsizing Clean Paradigm Electric shift DIESEL Discussion Evolution Revolution NOx Corporate Responsibility Hydrogen Energy saving Low local Drive System Pollution Hybrid emission Noise Optimization Reduction © DEUTZ AG Dr.
Slide 3: DEUTZ Strategy: We are taking action
DEUTZ Strategy We are taking action DEUTZ completes its clean diesel technology to the full range of advanced drive systems for professionals DEUTZ is driving the next revolution, delivering efficiency, performance & sustainability DEUTZ has proven its emission after treatment technology at early st
Slide 4: Market Positioning: Advanced Drive Systems for clean Power
DEUTZ Market Positioning Advanced Drive Systems for clean Power 48V renewable Mild Hybrid ELECTRICITY 360V Full Hybrid Battery Electric Vehicle Biodiesel Synth. Fuels Multi-Fuel Hydrogen renewable FUELS © DEUTZ AG Dr. Frank Hiller, CEO / September 2018 4
Slide 5: Philosophy: Revive Heritage, Ingenuity & Dynamic Spirit
DEUTZ Philosophy Revive Heritage, Ingenuity & Dynamic Spirit DEUTZ is reinventing its DEUTZ purchases DEUTZ creates A NEW DEUTZ will provide DEUTZ also implements roots as revolutionary torqeedo in 2017 to DYNAMIC in the whole the answer to key start-up thinking, to company & people to benefit from
Slide 6: Internationalization: Worldwide footprint
DEUTZ Internationalization Worldwide footprint DEUTZ internationalize its production, supply chain, sales & after sales network DEUTZ is setting up a new powerful local production in ASIA for other engine suppliers with our core competence for clean diesel & after treatment technology for China IV D
Slide 7: Performance: Operational Excellence
DEUTZ Performance Operational Excellence DEUTZ Revenue will be stabilized by different pillars such as REVENUE (in bn €) engine sales in OEM and distribution, clear after sales lifetime >2.0 programs worldwide for deeper penetration in origin parts, liquids, 1.25 labour and new eServices 2015 2022 D
Slide 8: The E-DEUTZ Story
ADVANCED DRIVE SYSTEMS The E-DEUTZ Story DEUTZ is synonymous with pioneering spirit, passion and innovation culture. DEUTZ is positioning itself as the market leader in advanced drive systems. 2017 Acquisition of 2018 Building up Hybrids and fully electronic prototypes 2019 Modular product system 20
Slide 9: Strategy: New Positioning
DEUTZ Strategy New Positioning VISION DEUTZ will play a key role in driving the DEUTZ builds the most advanced drive systems for next revolution professionals, providing outstanding performance to shape the world. DEUTZ provides clean diesel and gas technology MISSION incl. LPG, CNG and BI-FUEL Thro
Slide 13: Capital Markets Day: Dr. Andreas Strecker, CFO
CAPITAL MARKETS DAY 18 September 2018 COLOGNE GERMANY Dr. Andreas Strecker, CFO
Slide 14: Performance Program: Strategic & Operative Levers
DEUTZ Performance Program Strategic & Operative Levers IDENTITY VISION MISSION REVENUE (bn €) EBIT MARGIN (%) STOCK PRICE (€ per share) 7-8 7.58 2.0 Sustainable TARGETS 1.5 + 33% 2.7 >150% development 2017 2022 2017 2022 2017 2022 1 INNOVATION LEADERSHIP 2 OPERATIONAL EXCELLENCE 3 INTERNATIONALIZATI
Slide 15: Performance Program: Summary of Core Projects
DEUTZ Performance Program Summary of Core Projects  New Set-up in Asia,  Full combustion engine portfolio I NT E RN A T I O N A L Americas and Europe  Electric, Gas & Hybrid portfolio  Torqeedo stand-alone  EDEUTZ with hybrid and  EU Stage V and China IV I NNO V A T I O N full E-systems  Digi
Slide 16: Performance Program: Key figures
DEUTZ Performance Program Key figures 877.6 734.5 DEUTZ revenue growth plans are on track RE V E N U E + 19.5% in Mio.€ H1 2017 H1 2018 1,096.5 803.0 + 36.6% DEUTZ order backlog indicates strong 2nd half- NE W O R D E R S in Mio. € year 2018 and good start for 1st half-year 2019 H1 2017 H1 2018 5.4%
Slide 17: Group Performance Program: On Ground
DEUTZ Group Performance Program DEUTZ DEUTZ unit sales increased over the last 3 years DEUTZ sales volume has to ensure capacity utilization above 200,000 units for stable profitability even if markets slow down DEUTZ sales has to compensate business seasonality by harmonized mix of industries, segm
Slide 18: Group Growth Program: Torqeedo On Water
DEUTZ Group Growth Program torqeedo is a dynamic growth story production is already partly integrated in DEUTZ facilities to raise synergies extending the current B2C to also ON WATER bigger B2B activities such as inner city transport for key cities delivering a huge technology transfer to eDEUTZ ©
Slide 19: Investing in Companies' Future & Financial Health
DEUTZ Group Investing in Companies‘ Future & Financial Health DEUTZ invests in Torqeedo, in know how transfer of electric motors, batteries and software applications to expand DEUTZ’ business DEUTZ invests in China IV technology to win business with OEMs in Asia. DEUTZ invests in strategic cooperati
Slide 20: Capital Markets Day: Michael Wellenzohn, CSO
CAPITAL MARKETS DAY 18 September 2018 COLOGNE GERMANY Michael Wellenzohn, CSO
Slide 21: A New Dynamic: Sales & After Sales Performance Program
DEUTZ – A NEW DYNAMIC Sales & After Sales Performance Program DEUTZ Group 2017 Revenue split € million DEUTZ strives for >2 billion Euro Sales through 4 Today 2022+ equalized sales regions for well balanced diversification Service Service 309 400+ DEUTZ becomes a significant player in Construction,
Slide 22: A New Dynamic: Regional Growth Strategy
DEUTZ – A NEW DYNAMIC Regional Growth Strategy Off-Highway Market 2017 in Tsd. units 1,738 China biggest market worldwide => growth potential through IC technology at CN4 ASIA Japan/Korea further OEM penetration with innovation drives with diesel & full electric 422 EMEA further development of OEMs,
Slide 23: A New Dynamic: Key actions on Service Business
DEUTZ – A NEW DYNAMIC Key actions on Service Business DEUTZ improve further the order to delivery by digital connection in ordering, warehousing and spare parts delivery DEUTZ develop the distribution network for best in class field service quality and response time DEUTZ enable the distribution to
Slide 24: DEUTZ offers Advanced Drive Systems
DEUTZ – A NEW DYNAMIC DEUTZ offers Advanced Drive Systems 1999 - 2019 Nox particels 48V renewable -95.7% -97.9% Mild Hybrid ELECTRICITY 360V Full Hybrid Battery Electric Vehicle Biodiesel Synth. Fuels Multi-Fuel Hydrogen renewable FUELS Easy configuration of the individual advanced drive solution! ©
Slide 25: On Ground: Targeting 5-10% electric drives for 2022
DEUTZ is targeting 5-10% electric drives for 2022 DEUTZ is transferring synergies of Torqeedo’s system know how in E-drives for off road applications DEUTZ has developed a modular product kit for full electric & hybrid drives with focus on 48V and 360V solutions for hybrid and electric solutions ON
Slide 26: On Water: Torqeedo
is world market leader in electric boating has more then 80’000 E drive systems based on Li – Ionic Batteries in in the field growth opportunities are ahead helps to speed up the electrification of DEUTZ engine portfolio by fast engineering services ON WATER will build up clean concepts for alternat
Slide 27: Electrification milestones April to September 2018
April 2018 DEUTZ announced to focus on advanced drive systems and presenting first eDEUTZ concept at INTERMAT with invitation to “MORE” to come May 2018 DEUTZ starts digital marketing for drive integration & electrification by agile engineering of demonstrators via live videos on youtube May – Augus
Slide 28: Capital Markets Day: Dr. Christoph Ballin, CEO
CAPITAL MARKETS DAY 18 September 2018 COLOGNE GERMANY Dr. Christoph Ballin, CEO
Slide 29: Who we are
Who we are  We build the best electric and hybrid propulsion systems for boats worldwide.  Our products capture by far the highest market shares in electric and hybrid boating.  We are known for  Superior overall efficiencies  Fully integrated systems (low-voltage and high-voltage)  High-tech
Slide 30: Key facts
Key facts  Global #1 in electric mobility for boats - #1 in volume: > 80,000 electric propulsion systems in the field. - #1 in performance: Best performance in addressed segments - #1 in technology: Latest technologies, largest patent portfolio for electric and hybrid boating - #1 in capabilities:
Slide 31: Strategic rules for success in e-mobility
Strategic rules for success in e-mobility 1. Sustainability is always one element in the value proposition – but never the only element 2. Segments e-mobility attractiveness varies greatly among segments. It is important to focus on segments that can be successful today 3. Great Products are the cor
Slide 32: Addressed market volume by focus segments
Addressed market volume by focus segments  Total marine propulsion market for Market segment sizes in EUR billions boats amounts to approx. 4 EUR billions. 0.25 1.0 2.7  Torqeedo is currently taking electric mobility into pure combustion engine segments – driving growth & marine sustainability x5
Slide 33: Segment example: Kayak fishing
Segment example: Kayak fishing Why electric  Motors enable kayak fishermen to catch more fish  2.5 mln registered kayak fishermen in North America Why Torqeedo  Best solution in the market + Weight incl. battery from 7 kg + Speed up to 11 km/h + Range up to 100 km + On-board computer + Solar char
Slide 34: Segment example: Sailing dinghies & tenders
Segment example: Sailing dinghies & tenders Why electric  Low power requirements  Low range requirements Why Torqeedo  Compares to 3 HP petrol outboard in terms of speed, power and range  Advantages vs. petrol outboards + Lighter + More convenient + Cleaner + Quieter + Waterproof IP 67 + Onboard
Slide 35: Segment example: Luxury sailing
Segment example: Luxury sailing Why electric  Better user experience + Quieter, less generator run-time + Clean + Abundant energy on board  Sustainable Why Torqeedo  Only professional solution available Source: © Torqeedo DEUTZ AG 35
Slide 36: Segment example: Ferries & taxis
Segment example: Ferries & taxis Ottawa Why Rideau Canal ferries electric  Better economics Economically superior  Higher initial upfront investment + Save up to 80% on  Significantly operating costslower oiperating cost  Lower TCO + Typical break-even point More sustainable of 3 to 4 years + 
Slide 37: Segment example: Rescue / life saving
Segment example: Rescue / life saving Why electric  Rescue / life segment undergoing change to improve safety and economics  Electric solutions suited better for a range of rescue / life saving applications  Projects underway but not finalized Source: © DEUTZVIKING AG Life-Saving Equipment 37
Slide 38: Joining forces with the DEUTZ Team since October 2017
Joining forces with the DEUTZ Team since October 2017 Source: © DEUTZTorqeedo AG 38
Slide 39: Live Experience On Water
LIVE EXPERIENCE ON WATER powered by © DEUTZ AG Dr. Frank Hiller, CEO / September 2018 39
Slide 40: Capital Markets Day: Dr. Markus Müller
CAPITAL MARKETS DAY 18 September 2018 COLOGNE GERMANY Dr. Markus Müller SVP , Product Development & Tech. Customer Support
Slide 41: DEUTZ offers Advanced Drive Systems: Path to CO2 neutral future
DEUTZ – A NEW DYNAMIC DEUTZ offers Advanced Drive Systems 1999 - 2019 Nox particels 48V renewable -95.7% -97.9% Mild Hybrid ELECTRICITY 360V Full Hybrid Battery Electric Vehicle Biodiesel Synth. Fuels Multi-Fuel Hydrogen renewable FUELS The path to CO2 neutral future with Advanced Drive Systems © DE
Slide 42: ELECTRIP on Ground: E-DEUTZ Roadmap 2018
ELECTRIP on Ground E-DEUTZ Roadmap 2018 May September 1. Start HEV customer event April August Intermat Paris 1. Start BEV © DEUTZ AG Dr. Markus Müller / September 2018 42
Slide 43: ELECTRIP on Ground: E-DEUTZ Team
ELECTRIP on Ground E-DEUTZ Team Interdisciplinary team of electronics, software, hardware, purchasing and product management was founded in January 2018 with DEUTZ and Torqeedo colleagues. © DEUTZ AG Dr. Markus Müller / September 2018 43
Slide 44: ELECTRIP on Ground: Motivation: CO2-neutral future
ELECTRIP on Ground Motivation: CO2-neutral future © DEUTZ AG Dr. Markus Müller / September 2018 44
Slide 45: Strategy: Markets/Segments/Applications
ELECTRIP on Ground Strategy – Markets/Segments/Applications Starters & selective replacement of Full replacement of mechanical Diesel downsizing for larger attachments attachments (e.g. tractor, etc.) equipment >160kW Diesel downsizing Diesel downsizing for larger for small equipment equipment >56kW
Slide 46: INTERMAT 2018 Paris Trade Show Prototype
ELECTRIP on Ground INTERMAT 2018 Paris – Trade Show Prototype High voltage hybrid system TCD 2.9 stage V (55.4 kW without SCR) Intermediate flange gear with integrated clutch Electric motor and power electronics High voltage battery package Features boost battery charging pure electric operation © D
Slide 47: Live Experience On Ground
LIVE EXPERIENCE ON GROUND powered by © DEUTZ AG Dr. Frank Hiller, CEO / September 2018 47
Slide 48: 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.

Deutz — Investor Day (September 2018) on 6ix

Deutz — Investor Day (September 2018)

Slide 1: Capital Markets Day

Slide 2: DEUTZ Environment: Mega Trends in our Industry

Slide 3: DEUTZ Strategy: We are taking action

Slide 4: Market Positioning: Advanced Drive Systems for clean Power

Slide 5: Philosophy: Revive Heritage, Ingenuity & Dynamic Spirit

Slide 6: Internationalization: Worldwide footprint

Slide 7: Performance: Operational Excellence

Slide 8: The E-DEUTZ Story

Slide 9: Strategy: New Positioning

Slide 10: On Water

Slide 11: On Ground

Slide 12: © DEUTZ AG Dr. Frank Hiller, CEO / September 2018

Slide 13: Capital Markets Day: Dr. Andreas Strecker, CFO

Slide 14: Performance Program: Strategic & Operative Levers

Slide 15: Performance Program: Summary of Core Projects

Slide 16: Performance Program: Key figures

Slide 17: Group Performance Program: On Ground

Slide 18: Group Growth Program: Torqeedo On Water

Slide 19: Investing in Companies' Future & Financial Health

Slide 20: Capital Markets Day: Michael Wellenzohn, CSO

Slide 21: A New Dynamic: Sales & After Sales Performance Program

Slide 22: A New Dynamic: Regional Growth Strategy

Slide 23: A New Dynamic: Key actions on Service Business

Slide 24: DEUTZ offers Advanced Drive Systems

Slide 25: On Ground: Targeting 5-10% electric drives for 2022

Slide 26: On Water: Torqeedo

Slide 27: Electrification milestones April to September 2018

Slide 28: Capital Markets Day: Dr. Christoph Ballin, CEO

Slide 29: Who we are

Slide 30: Key facts

Slide 31: Strategic rules for success in e-mobility

Slide 32: Addressed market volume by focus segments

Slide 33: Segment example: Kayak fishing

Slide 34: Segment example: Sailing dinghies & tenders

Slide 35: Segment example: Luxury sailing

Slide 36: Segment example: Ferries & taxis

Slide 37: Segment example: Rescue / life saving

Slide 38: Joining forces with the DEUTZ Team since October 2017

Slide 39: Live Experience On Water

Slide 40: Capital Markets Day: Dr. Markus Müller

Slide 41: DEUTZ offers Advanced Drive Systems: Path to CO2 neutral future

Slide 42: ELECTRIP on Ground: E-DEUTZ Roadmap 2018

Slide 43: ELECTRIP on Ground: E-DEUTZ Team

Slide 44: ELECTRIP on Ground: Motivation: CO2-neutral future

Slide 45: Strategy: Markets/Segments/Applications

Slide 46: INTERMAT 2018 Paris Trade Show Prototype

Slide 47: Live Experience On Ground

Slide 48: Disclaimer

Slide 49: Thank you for your attention