Deutz Ag · XETR:DEZ
Deutz — FY2011 Earnings Presentation
32 slides from Deutz's earnings presentation, Mar 16, 2012
Slide 1: 2011 financial year – powering success
2011 financial year – powering success 15/16 March 2012
Slide 2: Agenda
Agenda Review of 2011 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2011 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2011 financial year 15/16 March 2012 2
Slide 3: Highlights of 2011
Highlights of 2011 2011 was one of the best in the history of DEUTZ - Revenue of €1.5 billion and sales of more than 230,000 units increased significantly by 29% and 38%, respectively - Highest revenue in the current business structure ever - The EBIT margin of 6.0% sets a milestone of our profita
Slide 4: Sales figures, 2011
Sales figures, 2011 Order Intake Unit Sales Revenue € million units € million 12.5% 37.5% 28.6% 1,529.0 1,479.3 1,315.0 230,598 329.9 305.1 26,437 1,189.1 324.3 167,680 270.1 17,501 1,174.2 204,161 1,199.1 990.7 150,179 919.0 2010 2011 2010 2011 2010 2011 Record sales in the current business struc
Slide 5: Revenue split
Revenue split Revenue Split by Application, 2011(1) Revenue Split by Region, 2011(2) (2010) (2010) Mobile Other 5% Machinery 35% Africa/Middle East 6% Europe (excl. Germany) 56% €76.0 million €529.4 million €87.8 million (€73.0 million) €860.6 million (€50.3 million) (€369.6 million) (€682.1 million
Slide 6: Overview of segments: Compact Engines
Overview of segments: Compact Engines Change Q4 Q4 Change € million 2011 2010 (%) € million 2011 2010 (%) New orders 1,174.2 990.7 18.5 New orders 236.9 237.4 -0.2 Unit sales 204,161 150,179 35.9 Unit sales 54,946 46,178 19.0 Revenue 1,199.1 919.0 30.5 Revenue 319.2 289.9 10.1 EBIT (before one-off i
Slide 7: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Change Q4 Q4 Change € million 2011 2010 (%) € million 2011 2010 (%) New orders 305.1 324.3 -5.9 New orders 72.6 90.8 -20.0 Unit sales 26,437 17,501 51.1 Unit sales 7,144 5,444 31.2 Revenue 329.9 270.1 22.1 Revenue 86.3 78.8 9.5 EBIT (before one-off it
Slide 8: Agenda
Agenda Review of 2011 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2011 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2011 financial year 15/16 March 2012 8
Slide 9: EBIT (before one-off items)
EBIT (before one-off items)(1) € million 91.2 46.5 42.2 33.5 DEUTZ Customised Solutions 47.2 Compact Engines 17.3 Other -8.6 -2.5 2010 2011 EBIT margin(1) 3.5% 6.0% EBIT margin advanced to 6.0% (2010: 3.5% before one-off items) Turnaround in profitability as a result of the implemented cost and
Slide 10: Net income
Net income 2010 2011 € million € million 91.2 -13.4 -1.3 -7.8 6.8 75.5 68.7 42.2 -19.9 -26.2 -1.4 -10.6 -15.9 Discon- EBIT One-off Net interest Other Income Net Net interest Other Income Net income tinued Net (before items expenses taxes taxes income EBIT expenses taxes taxes (continuing income oper
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure(2) € million 134.6 109.8 5.1 119.0 101.8 11.0 14.0 9.6 129.5 109.5 90.8 95.8 2010 2011 2010 2011 R&D ratio(1) 8.6% 7.2% Focus on Tier 4 exhaust emissions standards and the Capex declined by €15.6 million in 2011 development of our two
Slide 12: Net financial position and working capital
Net financial position and working capital Net financial position Working capital € million 142.1 112.6 2010 2011 2010 2011 Working 9.5% 9.3% capital ratio -73.6 -69.6 Cash credit line of €265 million provides sufficient financial Working capital increased less than revenue thanks to flexibility
Slide 13: Cash development 2011
Cash development 2011(1) € million Free cash flow € 4.8 million 160.3 -26.9 -115.2 -13.4 67.9 -21.2 51.6 31 Dec Working Borrowing Capex & Interest 31 Dec EBITDA and 2010 Capital others expenses 2011 repayment of loans Capital expenditure could be financed by cash flow from operating activities P
Slide 14: Summing up
Summing up Revenue of €1.5 billion at record level in the current business structure Revenue growth of 29% driven by all regions and applications Profitability reaching new levels – EBIT margin of 6.0% in 2011 Net income soared to €75.5 million Working capital ratio improved further to 9.3
Slide 15: Agenda
Agenda Review of 2011 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2011 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2011 financial year 15/16 March 2012 15
Slide 16: Financial outlook
Financial outlook Outlook for 2012 Revenue Approx. €1.5 billion EBIT margin Approx. 6.0 % Research and Development (R&D) Decline by about 25 % vs. 2011 Capex (excl. R&D) Approx. €60 million Free cash flow Positive territory Working capital ratio Sustainable below 13 % Equity ratio Above 40 % Outlook
Slide 17: DEUTZ Engine (Shandong) Co., Ltd.
DEUTZ Engine (Shandong) Co., Ltd. New production company DEUTZ Engine (Shandong) Co., Ltd. in Linyi (China); founding documents signed in January 2012 Production of engines < 4 litre for mobile machinery and agricultural applications in Asia. Complementary to existing JVs which build bigger engi
Slide 18: Quote from Dr Helmut Leube
“We have made huge reductions in our fixed costs and substantially increased efficiency, with the result that, today, we are able to respond even more flexibly to changing circumstances and remain profitable.” Dr Helmut Leube Chairman of the Board of Management of DEUTZ AG 2011 financial year 15/16
Slide 19: Agenda
Agenda Review of 2011 Dr Helmut Leube, Chairman of the Board of Management Key financials for 2011 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex 2011 financial year 15/16 March 2012 19
Slide 20: Summary of key financials (I)
Summary of key financials (I) € million 2011 2010 Change (%) Revenue 1,529.0 1,189.1 28.6 EBITDA 160.3 92.7 72.9 EBITDA (before one-off items) 160.3 112.6 42.4 EBIT 91.2 22.3 >100.0 EBIT before one-off items 91.2 42.2 >100.0 EBIT margin 6.0 1.9 -- EBIT margin before one-off items (%) 6.0 3.5 -- Net
Slide 21: Summary of key financials (II)
Summary of key financials (II) € million 2011 2010 Change (%) Total assets 1,099.0 1,041.7 5.5 Equity 453.5 374.3 21.2 Equity ratio (%) 41.3 35.9 -- Cash flow from operating activities 120.5 78.2 54.1 Free cash flow 4.8 -55.9 -- Net financial position -69.6 -73.6 5.4 Working capital (as at 31 Decemb
Slide 22: Income statement
Income statement € million 2011 2010 Change (%) Revenue 1,529.0 1,189.1 28.6 Changes in inventories and other own work capitalised 44.7 46.4 -3.7 Other operating income 37.5 55.3 -32.2 Cost of materials -1,021.1 -781.1 30.7 Staff costs -276.8 -253.0 9.4 Depreciation and amortisation -69.1 -63.3 9.2
Slide 23: Balance sheet: assets
Balance sheet: assets 31 Dec 31 Dec Change Assets (€ million) 2011 2010 (%) Non-current assets (excluding deferred tax assets) 623.1 591.5 5.3 Deferred tax assets 17.2 16.4 4.9 Inventories 187.6 157.6 19.0 Trade receivables 163.6 160.1 2.2 Other receivables and assets 55.5 47.7 16.4 Cash and cash eq
Slide 24: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Dec 31 Dec Change Equity and liabilities (€ million) 2011 2010 (%) Equity 453.5 374.3 21.2 Provisions for pensions and other post-retirement benefits 148.5 154.7 -4.0 Deferred tax provisions 2.8 0.0 -- Other provisions 29.3 29.8 -1.7 Financial liabilities 119
Slide 25: Cash flow statement (condensed)
Cash flow statement (condensed) € million 2011 2010 EBIT 91.2 22.3 Cash flow from operating activities (continuing operations) 120.5 78.2 Cash flow from operating activities (discontinued operations) 0.0 0.0 Cash flow from operating activities (total) 120.5 78.2 Capital expenditure on intangible ass
Slide 26: Overview of segments, 2011
Overview of segments, 2011 Change Change New orders (€ million) 2011 2010 (%) Unit sales 2011 2010 (%) Compact Engines 1,174.2 990.7 18.5 Compact Engines 204,161 150,179 35.9 DEUTZ Customised Solutions 305.1 324.3 -5.9 DEUTZ Customised Solutions 26,437 17,501 51.1 Total for operating activities 1,47
Slide 27: Overview of segments, Q4 2011
Overview of segments, Q4 2011 Q4 Q4 Change Q4 Q4 Change New orders (€ million) 2011 2010 (%) Unit sales 2011 2010 (%) Compact Engines 236.9 237.4 -0.2 Compact Engines 54,946 46,178 19.0 DEUTZ Customised Solutions 72.6 90.8 -20.0 DEUTZ Customised Solutions 7,144 5,444 31.2 Total for operating activit
Slide 28: Revenue and EBIT (2004 – 2011)
Revenue and EBIT (2004 – 2011) Revenue(1) EBIT (before one-off items)(1) € million 91.2 84.2 1,524.2 1,495.0 1,529.0 54.2 56.4 53.2 1,183.6 1,189.1 42.2 1,009.1 910.6 21.7 863.4 -46.3 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011 6.0% 5.6% 4.5% 5.5% 1.5% -5.4% 3.5%
Slide 29: Employees
Employees 31 Dec 31 Dec Change 2011 2010 (%) Cologne 2,561 2,419 5.9 Ulm 471 429 9.8 Other German operations 293 278 5.4 Germany 3,325 3,126 6.4 Foreign operations 735 713 3.1 DEUTZ Group 4,060 3,839 5.8 2011 financial year 15/16 March 2012 29
Slide 30: Financial calendar for 2012
Financial calendar for 2012 Annual General Meeting Cologne 26 April 2012 Interim report on first quarter of 2012 10 May 2012 Conference call with analysts and investors Interim report on first half of 2012 9 August 2012 Conference call with analysts and investors Interim report on first thre
Slide 31: DEUTZ AG contact details
DEUTZ AG contact details Christian Krupp Finance & Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Germany Tel.: +49 (0)221 822 5400 Fax: +49 (0)221 822 15 5400 Email: krupp.c@deutz.com www.deutz.com 2011 financial year 15/16 March 2012 31
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.