Deutz Ag · XETR:DEZ
Deutz — Q3 2013 Earnings Presentation
32 slides from Deutz's earnings presentation, Nov 7, 2013
Slide 1: Conference Call Q1-Q3 2013
Conference Call Q1-Q3 2013 7 November 2013 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review Q1-Q3 2013 Outlook Annex Conference Call Q1-Q3 2013 7 November 2013 2
Slide 3: Key figures
Key figures Q1-Q3 2013 yoy Q3 2013 qoq € million Order intake 1,203.6 +25.3% 360.1 -20.9% Revenue 1,043.1 +7.6% 381.0 +2.4% EBITDA 96.8 +20.5% 41.0 +1.7% EBIT 27.2 +16.2% 17.1 +3.6% Net financial debt -53.2 -56.1% -53.2 +18.5% All key figures improved compared to the previous year Conference Call Q1
Slide 4: Highlights Q1-Q3 2013
Highlights Q1-Q3 2013 New business continues to develop encouragingly – new engine series well accepted in the market Record order intake in Q1-Q3 Revenue growth predominantly in Agricultural Machinery Typical Q3 seasonality largely offset by strong order backlog Free float increased to 75% followin
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million 25.3% 1.9% 7.6% 1,203.6 200.0 132,221 134,669 1,043.1 960.5 13,204 10,697 969.4 181.7 213.9 216.9 1,003.6 119,017 124,002 861.4 746.6 752.5 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 record order int
Slide 6: Book-to-bill ratio
Book-to-bill ratio Q3 Q2 Q1 Q4 Q3 € million 2013 2013 2013 2012 2012 Order intake 360.1 455.0 388.5 276.6 259.5 Revenue 381.0 372.2 289.9 322.5 288.4 Book-to-bill ratio 0.95x 1.22x 1.34x 0.86x 0.90x Orders on hand 329.5 352.9 272.1 173.0 219.6 Q3 book-to-bill ratio at 0.95x after two quarters with e
Slide 7: Revenue development
Revenue development € million 399.4 405.5 372.2 381.0 336.9 344.1 322.5 288.4 289.9 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Positive revenue development continued in Q3: +32.1% yoy and +2.4% sequentially Conference Call Q1-Q3 2013 7 November 2013 7
Slide 8: Revenue split
Revenue split Revenue split by application, Q1-Q3 2013 Revenue split by region, Q1-Q3 2013(1) (Q1-Q3 2012) (Q1-Q3 2012) Other 1% Mobile Machinery 34% Africa/Middle East 5% Europe (excl. Germany) 57% €16.2 million €353.3 million €48.8 million €596.8 million (€11.1 million) (€363.8 million) (€57.5 mil
Slide 9: EBIT
EBIT € million 23.4 27.2 16.5 17.1 39.6 11.1 9.8 26.0 1.7 5.7 7.2 0.1 -10.2 -0.5 -0.3 -6.0 Q1-Q3 2012(1) Q1-Q3 2013 Q2 2013 Q3 2013 EBIT margin 2.4% 2.6% 4.4% 4.5% Q1-Q3 operating profit (EBIT) of €27.2 million increased by €3.8 million (+16.2%) yoy EBIT burdened by higher scheduled amortisation of
Slide 10: Operating profit and net income
Operating profit and net income Q1-Q3 2012(1) Q1-Q3 2013 € million 96.8 69.6 80.3 56.9 23.4 8.8 27.2 4.4 1.9 20.9 2.4 12.2 EBITDA D&A EBIT Net Income Net EBITDA D&A EBIT Net Income Net interest taxes income interest taxes income expenses expenses EBITDA of €96.8 million increased by €16.5 million (+
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million Gross spending 64.4 Reimbursements 15.3 54.3 13.8 44.2 Net spending 2.3 29.4 2.1 49.1 40.5 41.9 27.3 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012 Q1-Q3 2013 Net R&D spending 5.1% 3.9% ratio(1) R&D spending decreased in line with
Slide 12: Working capital and operating cash flow
Working capital and operating cash flow Working capital Operating cash flow € million 215.6 189.0 61.7 34.5 Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2012 Q1-Q3 2013 Working capital ratio 15.7% 13.8% (30 Sep) Working capital decreased by €26.6 million Operating cash flow increased by €27.2 million due to Effectiv
Slide 13: Free cash flow generation and net financial position
Free cash flow generation and net financial position Free cash flow € million Net financial position (Last twelve months) 68.7 Q1-Q3 2012 Q1-Q3 2013 -32.0 -53.2 Q3 2012 (LTM) Q3 2013 (LTM) -121.3 Free cash flow of €68.7 million generated in last Free cash flow used to reduce net financial position t
Slide 14: Equity ratio and funding
Equity ratio and funding € million 1,081.9 1,105.8 41.4% 42.8% 448.2 473.0 204 4 14 30 Q1-Q3 Q1-Q3 up to up to up to up to 2012 (1) 2013 1 year 2 years 5 years 10 years Total assets Equity xx.x% Equity ratio Repayment schedule (residual term) Sound balance sheet with strong equity ratio of 42.8% Med
Slide 15: Overview of segments: DEUTZ Compact Engines
Overview of segments: DEUTZ Compact Engines Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2013 2012 in % € million 2013 2013 in % New orders 1,003.6 746.6 34.4 New orders 303.1 372.2 -18.6 Unit sales 124,002 119,017 4.2 Unit sales 44,870 45,412 -1.2 Revenue 861.4 752.5 14.5 Revenue 315.1 306.6 2.8 EBIT
Slide 16: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2013 2012 in % € million 2013 2013 in % New orders 200.0 213.9 -6.5 New orders 57.0 82.8 -31.2 Unit sales 10,697 13,204 -19.0 Unit sales 3,922 4,257 -7.9 Revenue 181.7 216.9 -16.2 Revenue 65.9 65.6 0.5 EBIT 26
Slide 17: Summary: key financial development
Summary: key financial development All key figures improved Strong order intake and demand for new engines Lower R&D spending; scheduled amortisation increased Significant improvement of net income and free cash flow Sound balance sheet and lower net debt Conference Call Q1-Q3 2013 7 November 2013 1
Slide 18: Agenda
Agenda Review Q1-Q3 2013 Outlook Annex Conference Call Q1-Q3 2013 7 November 2013 18
Slide 19: Financial outlook
Financial outlook FY 2012 reported Guidance FY 2013 € million Revenue 1,291.9 > 1,400 EBIT margin (%) 2.9(2) > 3.0 Net R&D spending(1) 62.1 ~ 55 Net capex (excl. R&D)(1) 66.4 < 50 (1) Net of reimbursements (2) Restated For FY 2014 we expect low double digit revenue growth and moderate EBIT margin im
Slide 20: Agenda
Agenda Review Q1-Q3 2013 Outlook Annex Conference Call Q1-Q3 2013 7 November 2013 20
Slide 21: Summary of key financials (I)
Summary of key financials (I) € million Q1-Q3 2013 Q1-Q3 2012(1) Change (%) Revenue 1,043.1 969.4 7.6 EBITDA 96.8 80.3 20.5 EBIT 27.2 23.4 16.2 EBIT margin (%) 2.6 2.4 -- Net income 20.9 12.2 71.3 Basic earnings per share (€) 0.17 0.10 70.0 Number of employees (30 September) 4,012 4,040 -0.7 (1) Res
Slide 22: Summary of key financials (II)
Summary of key financials (II) € million Q1-Q3 2013 Q1-Q3 2012(1) Change (%) Total assets 1,105.8 1,081.9 2.2 Equity 473.0 448.2 5.5 Equity ratio (%) 42.8 41.4 -- Cash flow from operating activities 61.7 34.5 78.8 Free cash flow -4.1 -60.2 -93.2 Net financial position -53.2 -121.3 -56.1 Working capi
Slide 23: Income statement
Income statement € million Q1-Q3 2013 Q1-Q3 2012(1) Change (%) Revenue 1,043.1 969.4 7.6 Cost of goods sold -892.8 -835.4 6.9 Research and development costs -45.8 -28.4 61.3 Selling expenses -46.8 -45.6 2.6 Administrative expenses -26.0 -24.1 7.9 Other operating income 9.8 17.6 -44.3 Other operating
Slide 24: Balance sheet: assets
Balance sheet: assets 30 Sep 31 Dec Change € million 2013 2012(1) (%) Non-current assets (excluding deferred tax assets) 601.7 621.3 -3.2 Deferred tax assets 31.2 27.4 13.9 Inventories 245.1 184.4 32.9 Trade receivables 131.7 116.1 13.4 Other receivables and assets 38.2 32.8 16.5 Cash and cash equiv
Slide 25: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 30 Sep 31 Dec Change € million 2013 2012(1) (%) Equity 473.0 452.6 4.5 Provisions for pensions and other post-retirement benefits 172.3 181.8 -5.2 Other provisions 29.4 25.4 15.7 Financial liabilities 109.8 99.6 10.2 Other liabilities 4.0 5.0 -20.0 Non-current l
Slide 26: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1-Q3 2013 Q1-Q3 2012(1) EBIT 27.2 23.4 Cash flow from operating activities (total) 61.7 34.5 Capital expenditure on intangible assets, property, plant and equipment and investments -61.6 -86.1 Proceeds from the sale of non-current assets 0.4 0.7 Cash flow f
Slide 27: Overview of segments, Q1-Q3 2013
Overview of segments, Q1-Q3 2013 Q1-Q3 Q1-Q3 Change Q1-Q3 Q1-Q3 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 1,003.6 746.6 34.4 DEUTZ Compact Engines 124,002 119,017 4.2 DEUTZ Customised Solutions 200.0 213.9 -6.5 DEUTZ Customised Solutions 10,697 13,204
Slide 28: Overview of segments, Q3 2013
Overview of segments, Q3 2013 Q3 Q3 Change Q3 Q3 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 303.1 197.8 53.2 DEUTZ Compact Engines 44,870 34,406 30.4 DEUTZ Customised Solutions 57.0 61.7 -7.6 DEUTZ Customised Solutions 3,922 3,962 -1.0 Total for operat
Slide 29: Employees
Employees 30 Sep 30 Sep Change 2013 2012 (%) Cologne 2,398 2,513 -4.6 Ulm 414 421 -1.7 Other German operations 284 292 -2.7 Germany 3,096 3,226 -4.0 Foreign operations 916 814 12.5 DEUTZ Group 4,012 4,040 -0.7 Conference Call Q1-Q3 2013 7 November 2013 29
Slide 30: Shareholder structure
Shareholder structure 25.0 68.9 AB Volvo Group Number of Other free float shares: 3.0 120,861,783 Artisan Partners 3.1 FIL Ltd. (Fidelity) Share key data WKN 630500 ISIN DE0006305006 Reuters symbol DEZG.DE Bloomberg symbol DEZ:GR Conference Call Q1-Q3 2013 7 November 2013 30
Slide 31: Financial calendar & contact details
Financial calendar & contact details Annual report 2013 20 March 2014 Annual general meeting 7 May 2014 Contact details Christian Krupp Tel:+49 (0) 221 822 5400 Ottostrasse 1 Fax:+49 (0) 221 822 15 5400 51149 Cologne (Porz-Eil) Email: krupp.c@deutz.com Germany www.deutz.com Conference Call Q1-Q3 201
Slide 32: 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.