Deutz Ag · XETR:DEZ
Deutz — Investor Presentation (March 2014)
29 slides from Deutz's investor presentation, March 2014
Slide 1: The Origin of HighTech. Investor presentation March 2014
The Origin of HighTech. Investor presentation March 2014
Slide 2: Agenda
Agenda DEUTZ strategy & positioning Financials Outlook 2
Slide 3: DEUTZ at a glance
DEUTZ at a glance 150 years DEUTZ – a tradition of achievement Independent manufacturer of diesel engines with product range from 25 to 520 kw Profile Engineering and manufacturing company with strong expertise as system integrator Worldwide sales channels and service network Strong brand – synonym
Slide 4: Corporate structure
Corporate structure DEUTZ Group Revenue 2013 €1.45 billion DEUTZ Compact Engines DEUTZ Customised Solutions Revenue 2013 €1.19 billion Revenue 2013 €0.26 billion Liquid-cooled engines of up to 8 Air-cooled engines for on-road, off- litres cubic capacity for on- and off- road and marine applications
Slide 5: DEUTZ engines for Tier 4 emission standard
DEUTZ engines for Tier 4 emission standard Competitive product features: compact size, low fuel consumption, smart exhaust after-treatment Successful combination of platform strategy with DEUTZ application expertise Full range offering with focus on engines for Mobile Machinery and Agricultural Mach
Slide 6: Successful business development
Successful business development Examples of new applications New customers gained in all regions, in particular with new engines 2.9 and 3.6 Greater share of wallet at existing clients New business related to different applications, e.g. tractors, fork lifts, telehandler, dumpers, rollers, wheel loa
Slide 7: Key applications
Key applications Typical Markets benefit from Competitors application macro trends Construction Cummins Material handling Kubota Mobile Machinery Ground support Perkins Mining equipment Yanmar Tractors Deere Agricultural Kubota Agricultural Machinery Perkins equipment Yanmar Gensets Deere Pumps Kubo
Slide 8: Revenue split by application
Revenue split by application FY 2013 (FY 2012) Other 2% Mobile Machinery 33% €30.1 million €481.6 million (€15.3 million) (€477.5 million) Stationary Equipment 12% €173.7 million (€204.2 million) €1,453.2 million (€1,291.9 million) Automotive 13%(1) €188.5 million (€192.1 million) Service 18% Agricu
Slide 9: Revenue split by region
Revenue split by region FY 2013(1) Pro-forma incl. Joint Ventures, FY 2013(2) (FY 2012) (FY 2012) Africa/Middle East 5% Europe (excl. Germany) 57% Africa/Middle East 4% Europe (excl. Germany) 43% €70.4 million €824.6 million €70.4 million €824.6 million (€83.9 million) (€668.3 million) (€83.9 millio
Slide 10: Emission standards drive DEUTZ revenue growth
Emission standards drive DEUTZ revenue growth Average sales price per engine (indexed; FY 2011 = 100) 117 100 104 Tier 4 systems require exhaust aftertreatment devices Growing share of new emission engines drives revenue growth Positive price mix effects are expected to continue 2011 2012 2013 Struc
Slide 11: Service business
Service business € million 250.3 253.7 Strong resilience of profitable 241.6 service business through 215.8 different economic cycles 175.0 Higher complexity of new emission engines provides opportunity to increase penetration of service business 20% 18% 16% 20% 18% Active management of service netw
Slide 12: Major joint venture activities in China
Major joint venture activities in China(1) Joint venture with FAW Group 50-50 JV (at-equity consolidation) DEUTZ Dalian (DDE) Revenue FY 2013: €319m (+30% yoy) Production of 3-8 litres diesel engines Automotive and other applications Joint venture with AB Volvo DEUTZ stake 65% (full consolidation) D
Slide 13: Summary: structural growth drivers
Summary: structural growth drivers Product and business development leading to growth New emission standards require more complex engines with a higher value New production facilities in China will lead to significant growth in Asia in the coming years Trend growth of revenue >10% p.a. in the mid-te
Slide 14: Agenda
Agenda DEUTZ strategy & positioning Financials Outlook 14
Slide 15: Key figures FY 2013
Key figures FY 2013 FY 2013 yoy € million Order intake 1,649.7 +33.4% Revenue 1,453.2 +12.5% EBITDA 142.0 +16.7% EBIT 47.5 +28.0% Net financial debt 31.7 -34.8% DEUTZ delivered on all financial targets 15
Slide 16: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million 33.4% 2.9% 12.5% 1,649.7 178,774 184,028 264.2 16,875 16,064 1,453.2 1,237.1 1,291.9 264.4 276.5 286.9 1,385.5 161,899 167,964 1,188.8 960.6 1,005.0 2012 2013 2012 2013 2012 2013 Strong increase in order intake Higher proportion
Slide 17: Book-to-bill-ratio
Book-to-bill-ratio Q4 Q3 Q2 Q1 Q4 € million 2013 2013 2013 2013 2012 Order intake 446.1 360.1 455.0 388.5 276.6 Revenue 410.1 381.0 372.2 289.9 322.5 Book-to-bill ratio 1.09x 0.95x 1.22x 1.34x 0.86x Orders on hand 366.1 329.5 352.9 272.1 173.0 Q4 book-to-bill ratio at 1.09x Orders up 61.2% yoy and 2
Slide 18: EBIT
EBIT € million 37.1 47.5 46.3 39.0 20.3 17.1 9.8 13.0 7.3 8.7 0.1 7.2 7.0 0.3 -16.5 -0.2 2012(1) 2013 Q3 2013 Q4 2013 EBIT margin 2.9% 3.3% 4.5% 5.0% EBIT increased by €10.4 million (+28.0%) yoy Business accelerated in FY 2013: three consecutive quarters of improved profitability Margin burdened by
Slide 19: Operating profit & net income
Operating profit & net income 2012(1) 2013 € million 142.0 94.5 121.7 84.6 47.5 6.0 5.5 37.1 10.6 36.0 5.5 21.0 EBITDA D&A EBIT Net Income Net EBITDA D&A EBIT Net Income Net interest taxes(2) income interest taxes income expenses expenses EBITDA improved by €20.3 million (+16.7% yoy) Net income incr
Slide 20: Earnings & dividend per share
Earnings & dividend per share € per share 0.30 0.17 Earnings per share Dividend per share (1) 0.07 2012 2013 Proposed dividend €0.07 per share Dividend tax exempt for domestic investors (1) Board proposal to be submitted to the AGM 20
Slide 21: R&D spending & capital expenditure
R&D spending & capital expenditure R&D Capital expenditure (excl. R&D) € million Gross expenditure 82.7 71.1 69.0 Reimbursements 20.6 2.6 18.5 Net expenditure 45.0 2.5 62.1 66.4 52.6 42.5 2012 2013 2012 2013 Net R&D expenditure 4.8% 3.6% ratio (1) Net R&D expenditure decreased in line with our Capit
Slide 22: Working capital & operating cash flow
Working capital & operating cash flow Working capital Operating cash flow € million 172.3 141.6 104.9 105.0 2012 2013 2012 2013 Working capital ratio 11.0% 11.9% (31 Dec) Working capital increased due to higher business Operating cash flow stable volume Higher operating profit was compensated by hig
Slide 23: Free cash flow generation & net financial position
Free cash flow generation & net financial position Free cash flow Net financial position € million 2012 2013 12.6 13.8 -31.7 -48.6 2012 2013 Third consecutive year with positive free cash flow Net financial position improved by €16.9 million Free cash flow used to reduce net financial position 23
Slide 24: Equity ratio & funding
Equity ratio & funding € million 1,121.0 1,035.9 43.7% 45.0% 452.6 504.7 204 8 14 27 (1) 2012 2013 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) & duration of credit lines Sound balance sheet with strong equity ratio
Slide 25: Summary: key financial development
Summary: key financial development All key figures improved & FY 2013 targets achieved Record order intake and strong backlog Lower R&D spending; scheduled amortisation increased Significant improvement of net income Dividend payment proposed to the AGM Sound balance sheet and low net debt 25
Slide 26: Agenda
Agenda DEUTZ strategy & positioning Financials Outlook 26
Slide 27: Financial outlook
Financial outlook FY 2013 reported Guidance FY 2014 € million low double Revenue 1,453.2 digit %-growth EBIT margin before one-offs 3.3 % > 4.0 % Net R&D spending ratio(1) 3.6 % slight decline Net capex (excl. R&D)(1) 42.5 60 - 70 (1) Net of reimbursements Revenue growth supported by new customers,
Slide 28: Financial calendar & contact details
Financial calendar & contact details Interim report 1st quarter 2014 5 May 2014 Annual general meeting 7 May 2014 Interim report 1st half 2014 7 August 2014 Interim report 1st to 3rd quarter 2014 6 November 2014 Contact details Christian Krupp Tel:+49 (0) 221 822 5400 Ottostrasse 1 Fax:+49 (0) 221 8
Slide 29: 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.