Deutz Ag · XETR:DEZ
Deutz — Q1 2013 Earnings Presentation
29 slides from Deutz's earnings presentation, May 8, 2013
Slide 1: Conference Call Q1 2013
Conference Call Q1 2013 8 May 2013 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review Q1 2013 Outlook Annex Conference Call Q1 2013 8 May 2013 2
Slide 3: Key figures
Key figures Q1 2013 yoy € million Order intake 388.5 -0.4% Revenue 289.9 -14.0% EBIT -6.4 <-100.0% Net income -6.9 <-100.0% Net financial debt 69.3 -44.3% Equity ratio (%) 42.8 +1.8%-pts Lower business volume impacted profitability but encouraging order intake Conference Call Q1 2013 8 May 2013 3
Slide 4: Highlights Q1 2013
Highlights Q1 2013 Tough start to the year - Sales and profit down - Order intake qoq and orders on hand significantly up - Flexible response to demand fluctuations - JV DEUTZ Dalian with improved results Positive new business development - New customers gained in all regions and greater share o
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million -0.4% -22.0% -14.0% 390.0 388.5 46,461 4,882 336.9 93.5 60.2 36,238 73.9 289.9 2,518 50.2 328.3 41,579 296.5 33,720 263.0 239.7 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Order intake at strong level of Q1 2012 Unit sal
Slide 6: Book to bill ratio
Book to bill ratio Q1 Q4 Q3 Q2 Q1 € million 2013 2012 2012 2012 2012 Order intake 388.5 276.6 259.5 311.0 390.0 Revenue 289.9 322.5 288.4 344.1 336.9 Book to bill ratio 1.34x 0.86x 0.90x 0.90x 1.16x Orders on hand 272.1 173.0 219.6 249.6 280.5 Book to bill ratio at 1.34x Material improvement of
Slide 7: Revenue development
Revenue development € million 399.4 405.5 388.1 336.0 336.9 344.1 322.5 288.4 289.9 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Revenue upturn expected in upcoming quarters Conference Call Q1 2013 8 May 2013 7
Slide 8: Revenue split
Revenue split Revenue split by application, Q1 2013 Revenue split by region, Q1 2013(1) (Q1 2012) (Q1 2012) Other 2% Mobile Machinery 34% Africa/Middle East 6% Europe (excl. Germany) 57% €6.4 million €99.4 million €16.0 million €165.1 million (€22.9 million) (€121.5 million) (€18.3 million) (€183.0
Slide 9: EBIT
EBIT € million 10.0 12.0 5.1 -1.1 -0.9 -11.2 -6.4 -0.3 (1) Q1 2012 Q1 2013 EBIT margin 3.0% -2.2% EBIT declined by €16.4 million mainly due to lower business volume, slow start of DEUTZ Customised Solutions and higher depreciation and amortisation (€4.5 million) Business upturn in both segments
Slide 10: Net income
Net income Q1 2012(1) Q1 2013 € million 10.0 3.0 6.3 0.7 Net interest Income Net EBIT expenses taxes income EBIT Net Income Net interest taxes income expenses -6.4 1.3 -0.8 -6.9 Net interest expenses decreased sharply by €1.7 million due to lower borrowings and reduced interest rates Given tax l
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million 25.9 Gross spending 4.2 Reimbursements 15.2 14.9 Net spending 0.5 3.6 21.7 7.7 14.4 0.7 11.6 7.0 Net R&D Q1 2012 Q1 2013 Q1 2012 Q1 2013 spending 6.4% 4.0% ratio (1) Reduction of R&D spending according to plan due t
Slide 12: Net financial position and working capital
Net financial position and working capital Net financial position Working capital € million 197.1 168.8 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Working -69.3 capital ratio 12.9% 13.6% (31 March) -124.5 Net financial position improved strongly by €55.2 Working capital decreased by €28.3 million yoy milli
Slide 13: Equity ratio and funding
Equity ratio and funding € million 1,104.9 1,043.2 41.0% 42.8% 453.3 446.9 204 1 11 38 Q1 Q1 up to up to up to up to (1) 2012 2013 1 year 2 years 5 years 10 years Total assets Equity xx.x% Equity ratio Repayment schedule (residual term) Sound balance sheet with equity ratio of 42.8% (Q1 2012: 41.0
Slide 14: Overview of segments: DEUTZ Compact Engines
Overview of segments: DEUTZ Compact Engines Q1 Q1 Change Q1 Q4 Change € million 2013 2012 in % € million 2013 2012 in % New orders 328.3 296.5 10.7 New orders 328.3 214.0 53.4 Unit sales 33,720 41,579 -18.9 Unit sales 33,720 42,882 -21.4 Revenue 239.7 263.0 -8.9 Revenue 239.7 252.5 -5.1 EBIT -11.2 -
Slide 15: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Q1 Q1 Change Q1 Q4 Change € million 2013 2012 in % € million 2013 2012 in % New orders 60.2 93.5 -35.6 New orders 60.2 62.6 -3.8 Unit sales 2,518 4,882 -48.4 Unit sales 2,518 3,671 -31.4 Revenue 50.2 73.9 -32.1 Revenue 50.2 70.0 -28.3 EBIT 5.1 12.0(1)
Slide 16: Summary: Q1 2013 key financial development
Summary: Q1 2013 key financial development Significant improvement of order intake – book to bill ratio of 1.34 Decline of R&D spending but higher R&D amortisation Lower financing costs Net financial position improved by €55 million yoy Sound balance sheet; equity ratio >40% Conference Call Q1 2013
Slide 17: Agenda
Agenda Review Q1 2013 Outlook Annex Conference Call Q1 2013 8 May 2013 17
Slide 18: Financial outlook
Financial outlook FY 2012 reported Guidance FY 2013 € million Revenue 1,291.9 > 1,400 EBIT margin (%) 2.9(2) > 3.0 Net R&D spending(1) 62.1 ~ 55 Net capex (excl. R&D)(1) 66.4 60 - 70 (1) Net of reimbursements (2) Restated Results improvement expected in FY 2013 Strong year-to-date order intake w
Slide 19: Agenda
Agenda Review Q1 2013 Outlook Annex Conference Call Q1 2013 8 May 2013 19
Slide 20: Summary of key financials (I)
Summary of key financials (I) € million Q1 2013 Q1 2012(1) Change (%) Revenue 289.9 336.9 -14.0 EBITDA 15.5 27.4 -43.4 EBIT -6.4 10.0 <-100.0 EBIT margin (%) -2.2 3.0 -- Net income -6.9 6.3 <-100.0 Basic earnings per share (€) -0.06 0.05 <-100.0 Number of employees (31 March) 3,935 4,104 -4.1 (1) Re
Slide 21: Summary of key financials (II)
Summary of key financials (II) € million Q1 2013 Q1 2012(1) Change (%) Total assets 1,043.2 1,104.9 -5.6 Equity 446.9 453.3 -1.4 Equity ratio (%) 42.8 41.0 -- Cash flow from operating activities 0.9 -16.5 >100.0 Free cash flow -20.9 -55.3 62.2 Net financial position -69.3 -124.5 44.3 Working capital
Slide 22: Income statement
Income statement € million Q1 2013 Q1 2012(1) Change (%) Revenue 289.9 336.9 -14.0 Cost of goods sold -257.6 -289.4 -11.0 Research and development costs -14.3 -9.4 52.1 Selling expenses -15.6 -16.0 -2.5 Administrative expenses -7.4 -7.3 1.4 Other operating income 4.1 6.1 -32.8 Other operating expens
Slide 23: Balance sheet: assets
Balance sheet: assets 31 Mar 31 Dec Change Assets (€ million) 2013 2012(1) (%) Non-current assets (excluding deferred tax assets) 615.4 621.3 -1.0 Deferred tax assets 30.0 27.4 9.5 Inventories 211.4 184.4 14.6 Trade receivables 118.9 116.1 2.4 Other receivables and assets 34.2 32.8 4.3 Cash and cash
Slide 24: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Mar 31 Dec Change Equity and liabilities (€ million) 2013 2012(1) (%) Equity 446.9 452.6 -1.3 Provisions for pensions and other post-retirement benefits 181.3 181.8 -0.3 Other provisions 25.2 25.4 -0.8 Financial liabilities 99.7 99.6 0.1 Other liabilities 4.6
Slide 25: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1 2013 Q1 2012(1) EBIT -6.4 10.0 Cash flow from operating activities (total) 0.9 -16.5 Capital expenditure on intangible assets, property, plant and equipment and investments -20.8 -36.1 Proceeds from the sale of non-current assets 0.1 0.1 Cash flow from in
Slide 26: Overview of segments, Q1 2013
Overview of segments, Q1 2013 Q1 Q1 Change Q1 Q1 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 328.3 296.5 10.7 DEUTZ Compact Engines 33,720 41,579 -18.9 DEUTZ Customised Solutions 60.2 93.5 -35.6 DEUTZ Customised Solutions 2,518 4,882 -48.4 Total for ope
Slide 27: Employees
Employees 31 Mar 31 Mar Change 2013 2012 (%) Cologne 2,434 2,526 -3.6 Ulm 394 428 -7.9 Other German operations 282 292 -3.4 Germany 3,110 3,246 -4.2 Foreign operations 825 858 -3.8 DEUTZ Group 3,935 4,104 -4.1 Conference Call Q1 2013 8 May 2013 27
Slide 28: Financial calendar & contact details
Financial calendar & contact details Interim report 1st half 2013 8 August 2013 Interim report 1st to 3rd quarter 2013 7 November 2013 Contact details Christian Krupp Tel:+49 (0) 221 822 5400 Ottostrasse 1 Fax:+49 (0) 221 822 15 5400 51149 Cologne (Porz-Eil) Email: krupp.c@deutz.com Ge
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.