Deutz Ag · XETR:DEZ

Deutz — Q1 2025 Earnings Presentation

27 slides from Deutz's earnings presentation, Apr 30, 2025

  1. Slide 1: DEUTZ Q1 2025 results

    DEUTZ Q1 2025 results April 30, 2025

  2. 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.

  3. Slide 3: Agenda: Overview & current development

    AGENDA Overview & current development Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 3 DEUTZ Geschäftszahlen FY 2024 | 20. März 2025

  4. Slide 4: Q1 2025: Robust performance in continuously challenging environment

    Q1 2025: Robust performance in continuously challenging environment New orders Revenue EBIT margin1 FCF2 €546.1 million €489.0 million 4.3% €23.4 million +30.3% year-on-year, +7.5% y-o-y -1.8pp y-o-y, negative scale +€18.3 million y-o-y, driven by contribution of due to strong service effects signif

  5. Slide 5: Dual+ strategy progressing – environment remains volatile

    Dual+ strategy progressing – environment remains volatile ▪ Business Unit Energy continues excellent performance driven by Blue Star Power Systems ▪ Acquisition of UMS, announced beginning of Q2, will substantially broaden the footprint of the New Technology business ▪ HJS Emission Technology consol

  6. Slide 6: US business is a cornerstone of our Dual+ strategy

    US business is a cornerstone of our Dual+ strategy DEUTZ revenues in the USA ▪ DEUTZ’ US business expected to show significant continuing growth in the upcoming years Energy ▪ Longer-lasting need for combustion engines in US work 26% equipment to prevail due to large geography, partially Q1 2025: re

  7. Slide 7: Acquisition of Urban Mobility Systems – UMS

    Acquisition of Urban Mobility Systems – UMS Application examples ▪ Innovation leader in battery-electric drives primarily for the off-highway sector Excavators & Articulated Loaders Asphalt & Rollers ▪ Purchase of 100% stake in UMS by DEUTZ signed on April 6, 2025; closing expected in Q2 – all regul

  8. Slide 8: UMS enables electrification in on- and off-road applications

    UMS enables electrification in on- and off-road applications Overview Revenue breakdown 2024, in % ▪ Development and assembly of electrification Business 16 14 Prototyping area solutions for on- and off-highway vehicles 11 Conversion/ Pilot Series Electrification kits ▪ >200 machines such as excavat

  9. Slide 9: UMS offers opportunities in the defense sector

    UMS offers opportunities in the defense sector ▪ Opportunity for new defense applications ▪ Initial feasibility studies launched with relevant partners ▪ Idea: Equipping military vehicles like the Bushmaster troop transporter with a hybrid solution for tactical reasons – electric drive allows for lo

  10. Slide 10: Q1 2025 in numbers

    Q1 2025 in numbers Oliver Neu DEUTZ Geschäftszahlen FY 2024 | 20. März 2025

  11. Slide 11: Future Fit cost program: >€20 million to be achieved in current year

    Future Fit cost program: >€20 million to be achieved in current year Cost program (in € million) 50 50 ▪ On track in measure implementation ▪ Overall reduction of ~300 FTE planned, I Classic R&D 20 20 in thereof ~50 FTE outside Germany 2025 ▪ As of now, already ~75 termination contracts in Germany a

  12. Slide 12: DEUTZ Group – Q1 2025 business figures

    DEUTZ Group – Q1 2025 business figures New orders Revenue Adjusted EBIT1 in € million In € million in € million (margin in %) +30.3% +7.5% -24.2% 546.1 489.0 27.7 454.7 419.2 21.0 6.1% 4.3% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 ▪ New orders driven by portfolio development; book-to-bill rat

  13. Slide 13: Segment DEUTZ Engines & Services

    Segment DEUTZ Engines & Services Engines & Services ▪ Engines in € million Q1 2024 Q1 2025 ▪ 30,630 units sold (-19.2% y-o-y) ▪ Significantly lower production volume (-25.7% y-o-y) New orders 408.7 475.9 resulting into negative economies of scale ▪ HJS2 consolidated from beginning of January 2025 Re

  14. Slide 14: Segment DEUTZ Solutions

    Segment DEUTZ Solutions Solutions ▪ Energy in € million Q1 2024 Q1 2025 ▪ Positive order momentum, including major order, resulting in book-to-bill ratio for Energy of 1.7 New orders 10.5 70.2 ▪ Revenue of €38.9 million (Q1 2024: €3.9 million) ▪ Adjusted EBIT of €3.5 million2 Revenue 5.0 40.9 ▪ New

  15. Slide 15: R&D spending, capital expenditure, and working capital

    R&D spending, capital expenditure, and working capital Net R&D spending1 Capital expenditure1,2 Working capital in € million in € million in € million -11.0% -2.0% 25.4 -18.0% 383.0 375.5 22.6 20.0 5.6% 4.9 16.4 21.1% 1.0 20.3% 4.6% Q1 2024 Q1 2025 Q1 2024 Q1 2025 31.12.2024 31.03.2025 R&D ratio The

  16. Slide 16: Cash flow and net debt

    Cash flow and net debt Cash flow from Free cash flow1 Net debt2 in € million in € million operating activities in € million +24.7 -15.4 225.6 50.9 +18.3 210.2 23.4 86.9 83.1 26.2 Thereof leases 5.1 Thereof leases Q1 2024 Q1 2025 Q1 2024 Q1 2025 31.12.2024 31.03.2025 ▪ Operating cash flow: Working Ca

  17. Slide 17: Balance sheet, financing and dividend

    Balance sheet, financing and dividend Equity1 Leverage2 Dividend per share in € million Net debt3/EBITDA LTM4 in € 1,754 1,683 0.17 0.17 50.4% 1.3 1.3 0.15 47.4% 848 832 0.8 0.6 31.12.2024 31.03.2025 2022 2023 2024 Q1 2025 2022 2023 20245 Total assets Equity % Equity ratio ▪ Equity ratio lower at 47

  18. Slide 18: Agenda: Guidance for 2025

    AGENDA Guidance for 2025 Dr. Sebastian C. Schulte Dr. Sebastian C. Schulte | CEO 18 DEUTZ AG | Q1 2025 results | April 30, 2025

  19. Slide 19: Guidance 2025 confirmed despite macroeconomic uncertainty

    Guidance 2025 confirmed despite macroeconomic uncertainty Guidance 2025 ▪ Economic recovery expected in the second half of 2025 €2.1 to €2.3 billion thereof €2.0 to €2.2 billion in the DEUTZ Revenue ▪ Sustainable cost savings of at Engines & Services segment and €150 to €200 least €20 million from F

  20. Slide 20: Upcoming Annual General Meeting 2025

    Upcoming Annual General Meeting 2025 ▪ Virtual AGM on May 8, 2025 ▪ Dividend proposal of €0.17 per share (in line with new dividend policy) ▪ Proposals for capital authorizations largely renew previous status prior to capital increase 2024 ▪ AGM 2026 will be held as an in-person meeting in Cologne 2

  21. Slide 21: Thank you for your attention! Any questions?

    Thank you for your attention! Any questions?

  22. Slide 22: Financial calendar and contact details

    Financial calendar and contact details Financial calendar Contact Annual General Meeting (virtual) May 8, 2025 Investor Relations H1 2025 interim report August 7, 2025 +49 (0) 221 822-3600 2025 Q3 2025 quarterly statement November 6, 2025 ir@deutz.com Follow us on ANNUAL REPORT 2024 DEUTZ 2024 – THE

  23. Slide 23: Appendix

    — Appendix

  24. Slide 24: Q1 2025: Revenue breakdown by application and region

    Q1 2025: Revenue breakdown by application and region Revenue by application segment1 Revenue by region1 Q1 2025 (Q1 2024) Q1 2025 (Q1 2024) Stationary Equipment Miscellanous Africa/Middle East Europe (ex Germany) 11.7% (6.2%) 9.0% (3.1%) 4% (4%) 32% (35%) €56.9 million €44.0 million €19.2 million €1

  25. Slide 25: Future Fit: Potential confirmed in all areas

    Future Fit: Potential confirmed in all areas Field Details I R&D costs in the €20 million Flexibilization and reduction of capacities and costs – through Classic segment offshoring, nearshoring and reduction of jobs in Cologne II More focused spending €10 million Alignment of product development bud

  26. Slide 26: Dual+ strategy incorporates mid-term targets 2028 and ambitions 2030

    Dual+ strategy incorporates mid-term targets 2028 and ambitions 2030 Mid-term revenue ambition (in € billion) ▪ Solutions expected to grow at 30% CAGR until 2030; more than €500 +13% CAGR ~4.0 million in revenue expected from Energy 3.2-3.4 21% Solutions – growth driven both organically and by acqui

  27. Slide 27: DEUTZ AG | Q1 2025 results

    DEUTZ AG | Q1 2025 results | April 30, 2025

Deutz — Q1 2025 Earnings Presentation on 6ix