Deutz Ag · XETR:DEZ
Deutz — FY2023 Earnings Presentation
31 slides from Deutz's earnings presentation, Mar 19, 2024
Slide 1: DEUTZ FY 2023 results
DEUTZ FY 2023 results March 19, 2024
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 of FY 2023 & Strategy Update
AGENDA Overview of FY 2023 & Strategy Update Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 3 DEUTZ FY 2023 results | March 19, 2024
Slide 4: Again, 2023 was a year of profitable growth for DEUTZ!
Again, 2023 was a year of profitable growth for DEUTZ! Solid growth Profitability increase 3.0% 7.6% 7.8% 5.7% 7.0% 8.8% Growth in number Service revenue Group revenue EBIT margin2 EBIT margin3 Classic EBIT of engines sold growth growth1 (Group): continued margin3 186,718 engines to to €120 million;
Slide 5: DEUTZ with a track record of delivering our promises
DEUTZ with a track record of delivering our promises Guidance vs. actual Guidance 2021 2022 2023 2023 actual Unit sales 185,000-190,000 186,718 Units1 Revenue ~€2.1 billion €2.1 billion EBIT 5.3-5.8% 5.7% margin2 Free cash Mid double-digit- €55.9 million flow3 million-euro amount 5 1 DEUTZ Classic e
Slide 6: Order intake with positive trend
Order intake with positive trend Book-to-bill trend (DEUTZ Classic) Revenue and new orders in € million Normalization after end of fixed- 600 Revenue volume program and stabilization 500 of supply chain (indicative) 400 Orders on hand of 3-4 months USA remains most dynamic 300 New orders regio
Slide 7: DUAL+ strategy
DUAL+ strategy I II Grow CLASSIC market Build a GREEN based on performance and ecosystem with relevant market consolidation products and technologies Enhance profitability Investments, growth and and growth long-term profitability + Expand profitable SERVICE business around the world Profitability t
Slide 8: Implementation of strategy with positive impact on 2023 result
Implementation of strategy with positive impact on 2023 result All pillars of our strategy contribute to sustainable performance improvement € million +61% Reporting incl. Torqeedo 144 120 89 Adjusted Classic: Service: Green: Green: Adjusted EBIT Adjusted EBIT 2022 margin & margin & higher R&D Torqe
Slide 9: Classic segment highlights
Classic segment highlights Strategic partnerships and focus on performance Strategic partnerships Performance improvements Active market consolidation initiated – an Continuation of our successful pricing campaign important step closer to our goal of becoming one of the top 3 independent engine
Slide 10: Service highlights | Implementation of growth strategy
Service highlights | Implementation of growth strategy 10-year growth of >7% p.a., increased growth since 2021 Service revenue growth € million Consistent implementation of Service 600 strategy (target: €600 million top line +12% in 2025) +7% 484 Further development of existing 450 business as k
Slide 11: Green highlights: Divestiture of Torqeedo
Green highlights Divestiture of Torqeedo Sale of Torqeedo to Yamaha Motors – as “best owner” Important step in ongoing process of repositioning and focusing Green segment Basis to focus on more customer-oriented approach towards green drivetrains Key aspects of the transaction: Torqeedo EB
Slide 12: Green highlights | R&D investments lead to first market success
Green highlights | R&D investments lead to first market success Overview of selected projects Order for hydrogen engines Customer projects Further invest in R&D (GenSets) Major order for 100 hydrogen Various pilot projects for electric drives Continued high level of future engines from China (
Slide 13: Strategy implementation: focus for 2024
Strategy implementation: focus for 2024 Integration of Rolls-Royce Power I II Systems business – expected to Implementation of China boost earnings from mid-2024 hydrogen GenSet order onwards Further expansion of new Performance focus orders and customer projects (e.g. material cost reductio
Slide 14: Agenda: FY 2023 in numbers
AGENDA FY 2023 in numbers Timo Krutoff Dr. Sebastian C. Schulte | CEO 14 DEUTZ FY 2023 results | March 19, 2024
Slide 15: FY 2023 results
FY 2023 results Comparison overall group / continued operations Unit sales Revenue Adjusted EBIT/margin Units € million € million -16.2% -1.9% +19.3% 143,6 223,247 2.104,8 2.063,2 120,4 36,131 187,116 7.0% 5.7% 2023 2023 cont. op 2023 2023 cont. op. 2023 2023 cont. op. thereof Torqeedo Elimination
Slide 16: FY 2023 results compared with previous year
FY 2023 results1 compared with previous year New orders Unit sales Revenue € million Units € million -11.7% +3.2% +9.0% 1.980,8 2.063,2 1.749,9 181,268 187,116 1.892,1 2022 2023 2022 2023 2022 2023 New orders below previous year’s high level – book-to-bill ratio 0.85 (2022: 1.05) Unit sales grow
Slide 17: Successful expansion of the Service business
Successful expansion of the Service business Revenue New orders € million € million +7.6% +5.9% Our Service target: 483,8 ~ €600 million 449,8 453,5 480.1 revenue level in 2025 2022 2023 2022 2023 Significant business expansion, particularly in parts sales and with DEUTZ Xchange engines Acquisit
Slide 18: FY 2023 revenue growth in detail
FY 2023 revenue growth in detail1 Revenue breakdown by region Revenue breakdown by application segment 2023 (2022) 2023 (2022) Africa/Middle East Europe (excluding Germany) Other Construction Equipment 4% (3%) 37% (38%) 3% (3%) 29% (31%) 93.3 € million 763.1 € million 68.3 € million 586.1 € million
Slide 19: Significant profitability improvement in continued operations
Significant profitability improvement1 in continued operations Adjusted earnings in € million EBIT margin before exceptional items Improvement in 2023 EBIT before exceptional items to €143.6 million (2022: €103.5 million) due to: +€6.1 million / +1 pp qoq − Expansion of profitable service business
Slide 20: R&D spending, capital expenditure and working capital
R&D spending, capital expenditure and working capital1 Net R&D spend2 Capital expenditure2,3 Working capital € million € million € million +15.6% +11.6% +21.0% 4.7% 117.1 17.7% 4.5% 15.6% 104.9 17.1 379.8 97,9 35.2 84,7 313.8 54.2 2022 2023 2022 2023 Dec. 31, 2022 Dec. 31, 2023 R&D ratio2 of which a
Slide 21: Cash flow and net financial position
Cash flow and net financial position1 Cash flow from Free cash flow before M&A2 Free cash flow before M&A2 Net debt operating activities € million Continued operations € million € million € million +81.1 € million +63.3 € million +57.3 € million -7.3 € million 138,8 55.9 57,7 72.9 -94.6 -89.6 15.6 -
Slide 22: Solid balance sheet
Solid balance sheet Proposed increase of dividend to €0.17 Equity and equity ratio Net debt/EBITDA1 Dividend per share2 € million € 1.590,2 1.475,4 0,17 46.7% 0,15 45.3% 743,2 668,8 2.6 0,6 0,9 0.7 0 0 1 Dec. 31, 2022 Dec. 31, 2023 2020 2021 2022 2023 2020 2021 2022 2023 Total assets Equity Equity r
Slide 23: Results for 2023: Classic segment
Results for 2023 Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million -12.0% +3.0% +8.9% +40.6% 180.1 186,718 2,058.2 1,981.1 181,249 1,889.4 128.1 1,743.2 8.8% 6.8% 2022 2023 2022 2023 2022 2023 2022 2023 New orders down year-on-year; unit sales a
Slide 24: Results for 2023: Green segment
Results for 2023 Green segment Green (continued ops) Green (incl. Torqeedo) 2022 2023 2022 2023 Order intake Sale of Torqeedo enables repositioning in -0.3 6.7 52.5 54.1 Green segment € million Reduction of losses New orders 19 398 53,433 36,529 Focus on establishing a new business unit Units
Slide 25: Agenda: Guidance for 2024
AGENDA Guidance for 2024 Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 25 DEUTZ FY 2023 results | March 19, 2024
Slide 26: Global market forecasts for 2024
Global market forecasts for 2024 Agricultural Construction Material Equipment Equipment Handling EMEA Americas APAC End markets expected slightly weaker or stable in 2024 26 Source: VDMA “Geschäftsklima und Marktentwicklung”, February 2024, Power Systems Research, January 2024. DEUTZ FY 2023 results
Slide 27: Stable operating performance expected in FY 2024
Stable operating performance expected in FY 2024 Guidance 2024 160,000 to 180,000 Unit sales Lower demand reflected in DEUTZ engines expectation for unit sales RRPS agreement expected to Revenue €1.9 to €2.1 billion add positive revenue effect from mid-2024 onwards Adjusted Significantly more
Slide 28: 2023 | Strong performance in a volatile environment
2023 | Strong performance in a volatile environment New orders Unit sales Revenue Adjusted EBIT + €31.0 million to DEUTZ Classic engines - 11.6% + 7.8% to + 3.0% to €120.4 million €1.8 billion €2.1 billion EBIT margin1 5.7% (+1.1 pp) Book-to-bill-ratio: 0.85 186,718 units continued operations 7.0% (
Slide 29: Thank you for your attention! Any questions?
Thank you for your attention! Any questions?
Slide 30: Financial calendar and contact details
Financial calendar and contact details Financial calendar Kontakt Q1 2024 quarterly statement April 30, 2024 Investor Relations +49 (0) 221 822-3600 2024 2024 Annual General Meeting (virtual) May 8, 2024 ir@deutz.com H1 2024 interim report August 8, 2024 Q3 2024 quarterly statement November 7, 2024
Slide 31: DEUTZ FY 2023 results | March 19, 2024
DEUTZ FY 2023 results | March 19, 2024