Deutz Ag · XETR:DEZ
Deutz — Q1 2020 Earnings Presentation
26 slides from Deutz's earnings presentation, May 7, 2020
Slide 1: Results for the 1st quarter of 2020
Results for the 1st quarter of 2020 May 7, 2020
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
Agenda Agenda Overview Dr. Frank Hiller | Chairman of the Board of Management 3
Slide 4: Overview
Overview ▪ DEUTZ engine business declines overall due to a marked fall in demand caused by the coronavirus crisis and adverse effects resulting from customers running down inventories of engines purchased ahead of new emissions standards coming into force − Double-digit percentage decreases in new o
Slide 5: Sales figures
Sales figures New orders Unit sales Revenue € million Units € million -30.7% -16.1% -25.0% 47,735 452.8 514.5 40,069 339.8 356.7 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 ▪ Marked fall in new orders due to the impact of the coronavirus crisis on the global economy ▪ Larger decrease in revenue
Slide 6: Revenue by region
Revenue by region Q1 2020 (Q1 2019) Africa and Middle East 4% (3%) Europe (excl. Germany) 43% (40%) €13.8 million €144.7 million +19.0% -20.3% Asia-Pacific 15% (17%) €339.8 million (€452.8 million) €51.1 million -35.1% Americas 18% (22%) Germany 20% (18%) €63.1 million €67.1 million -37.6% -15.8% Re
Slide 7: Revenue by application segment
Revenue by application segment Q1 2020 (Q1 2019) Miscellaneous 7% (6%) Construction Equipment 30% (30%) €22.7 million €101.9 million -14.3% -25.9% Stationary Equipment 8% (8%) Material Handling 14% (20%) €339.8 million €27.8 million (€452.8 million) €47.9 million -21.0% -47.0% Agricultural Machinery
Slide 8: Agenda: Key financials in detail
Agenda Agenda Key financials in detail Dr. Andreas Strecker | Chief Financial Officer 8
Slide 9: Operating profit and net income
Operating profit and net income EBIT and EBIT margin Net income ▪ Decrease in operating profit (EBIT before exceptional before exceptional items1 items) mainly attributable to: − Sharp fall in revenue – caused by the coronavirus crisis <-100% <-100% and customers selling the inventories of engines t
Slide 10: Business performance in the segments 1/2
Business performance in the segments 1/2 DEUTZ Compact Engines (DCE) DEUTZ Customized Solutions (DCS) € million Q1 2020 Q1 2019 Change € million Q1 2020 Q1 2019 Change (%) (%) New orders 255.3 409.3 -37.6 New orders 92.5 96.9 -4.5 Unit sales (units) 26,993 38,970 -30.7 Unit sales (units) 4,553 7,094
Slide 11: Business performance in the segments 2/2
Business performance in the segments 2/2 Other € million Q1 2020 Q1 2019 Change (%) New orders 9.7 9.2 +5.4 Unit sales (units) 8,523 1,671 >+100 Revenue 9.9 6.3 +57.1 EBIT -3.4 -6.2 +45.2 EBIT margin (%) -34.3 -98.4 - ▪ The Other segment delivered a positive business performance overall thanks to in
Slide 12: R&D: spending and capital expenditure
R&D: spending and capital expenditure R&D spending Capital expenditure2 € million (after deducting grants) € million 7.3% +30.3% 5.2% 23.6 24.8 24.5 18.8 Q1 2019 Q1 2020 Q1 2019 Q1 2020 R&D ratio1 ▪ Increase in capital expenditure largely attributable to the extension of leases and the replacement o
Slide 13: Working capital and cash flow from operating activities
Working capital and cash flow from operating activities Working capital Cash flow from operating activities € million € million 18.3% 17.4% 293.2 307.7 -2.8 -11.9 Dec. 31, 2019 Mar. 31, 2020 Q1 2019 Q1 2020 Working capital ratio (average)1 ▪ Rise in working capital, primarily owing to a seasonal-rel
Slide 14: Free cash flow and net financial position
Free cash flow and net financial position Free cash flow1 Net financial position € million € million -15.2 -30.2 -35.5 -65.6 Q1 2019 Q1 2020 Dec. 31, 2019 Mar. 31, 2020 ▪ Deterioration in free cash flow attributable to the decrease in cash flow from operating activities ▪ Decline in the net financia
Slide 15: Equity ratio and funding
Equity ratio and funding Equity ratio Funding € million € million Long-term bank loans Lease liabilities 1,301.2 1,247,7 50.1% 50.4% 160.0 652.4 642.0 29.3 16.8 12.8 13.1 9.9 Dec. 31, 2019 Mar. 31, 2020 up to 1 year 2–5 years up to 1 year 1–5 years over 5 years Total assets Equity Equity ratio Repay
Slide 16: Agenda: Outlook
Agenda Agenda Outlook Dr. Frank Hiller | Chairman of the Board of Management 16
Slide 17: Outlook for 2020
Outlook for 2020 ▪ The impact of the coronavirus crisis on the global economy is expected to take a heavy toll on DEUTZ's engine business.1 ▪ The timing and course of the coronavirus crisis going forward is very difficult to predict. Consequently, it is still not possible to provide updated guidance
Slide 18: Annex
DEUTZ Annex
Slide 19: Overview of segments
Overview of segments New orders Q1 2020 Q1 2019 Change Revenue Q1 2020 Q1 2019 Change (€ million) (%) € million (%) DEUTZ Compact Engines 255.3 409.3 -37.6 DEUTZ Compact Engines 255.9 356.2 -28.2 DEUTZ Customized Solutions 92.5 96.9 -4.5 DEUTZ Customized Solutions 74.8 91.2 -18.0 Other 9.7 9.2 +5.4
Slide 20: Income statement
Income statement € million Q1 2020 Q1 2019 Revenue 339.8 452.8 Cost of sales -288.4 -365.3 Research and development costs -24.1 -22.7 Selling expenses -27.5 -25.9 General and administrative expenses -11.5 -12.7 Other operating income 5.1 6.8 Other operating expenses -5.6 -8.3 Write-downs of financia
Slide 21: Balance sheet: assets
Balance sheet: assets € million Mar. 31, 2020 Dec. 31, 2019 Property, plant and equipment 355.6 347.2 Intangible assets 215.2 216.2 Equity-accounted investments 51.6 51.1 Other financial assets 4.3 5.0 Non-current assets (before deferred tax assets) 626.7 619.5 Deferred tax assets 71.2 68.6 Non-curr
Slide 22: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities € million Mar. 31, 2020 Dec. 31, 2019 Issued capital 309.0 309.0 Additional paid-in capital 28.8 28.8 Other reserves -0.9 0.1 Retained earnings and accumulated income 304.9 314.3 Equity attributable to shareholders of DEUTZ AG 641.8 652.2 Non-controlling interes
Slide 23: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1 2020 Q1 2019 EBIT -11.8 25.1 Cash flow from operating activities -11.9 -2.8 Capital expenditure on intangible assets, property, plant and equipment and investments -23.1 -26.9 Proceeds from the sale of non-current assets 0.2 0.0 Cash flow from investing a
Slide 24: Financial calendar and contact details
Financial calendar and contact details Financial calendar Annual General Meeting June 25, 2020 (virtual) H1 2020 results August 11, 2020 Q1–Q3 2020 results November 10, 2020 Contact Leslie Isabelle Iltgen SVP Communications & Investor Relations +49 (0)221 822 3600 leslie.iltgen@deutz.com 24
Slide 25: Questions & answers
DEUTZ Questions & answers
Slide 26: Thank you for your attention!
Thank you for your attention!