Deutz Ag · XETR:DEZ
Deutz — H1 2013 Earnings Presentation
30 slides from Deutz's earnings presentation, Aug 8, 2013
Slide 1: Conference Call H1 2013
Conference Call H1 2013 8 August 2013 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review H1 2013 Outlook Annex Conference Call H1 2013 8 August 2013 2
Slide 3: Key figures
Key figures H1 2013 yoy Q2 2013 qoq € million Order intake 843.5 +20.3% 455.0 +17.1% Revenue 662.1 -2.8% 372.2 +28.4% EBITDA 55.8 -2.8% 40.3 >100.0% EBIT 10.1 -51.2% 16.5 >100.0% Net financial debt -44.9 -62.0% -44.9 -35.2% Improvement of all key figures in Q2 Conference Call H1 2013 8 August 2013 3
Slide 4: Highlights H1 2013
Highlights H1 2013 Record order intake New business continues to develop encouraging Higher capacity utilisation in Q2 with positive impact on profitability Sales initiative in DEUTZ Customised Solutions already leading to results DEUTZ Dalian with improved sales and profitability Strong free cash f
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million 20.3% -8.5% -2.8% 843.5 93,853 701.0 143.0 9,242 85,907 6,775 681.0 662.1 152.2 146.2 115.8 700.5 84,611 79,132 548.8 534.8 546.3 H1 2012 H1 2013 H1 2012 H1 2013 H1 2012 H1 2013 Record order intake, both in H1 and Q2(1) Revenue,
Slide 6: Book-to-bill ratio
Book-to-bill ratio Q2 Q1 Q4 Q3 Q2 € million 2013 2013 2012 2012 2012 Order intake 455.0 388.5 276.6 259.5 311.0 Revenue 372.2 289.9 322.5 288.4 344.1 Book-to-bill ratio 1.22x 1.34x 0.86x 0.90x 0.90x Orders on hand 352.9 272.1 173.0 219.6 249.6 Strong book-to-bill ratio in Q1 and Q2 Orders on hand of
Slide 7: Revenue development
Revenue development € million 399.4 405.5 388.1 372.2 336.9 344.1 322.5 288.4 289.9 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Positive revenue development expected to continue Conference Call H1 2013 8 August 2013 7
Slide 8: Revenue split
Revenue split Revenue split by application, H1 2013 Revenue split by region, H1 2013(1) (H1 2012) (H1 2012) Other 4% Mobile Machinery 34% Africa/Middle East 5% Europe (excl. Germany) 58% €26.0 million €227.8 million €31.6 million €380.9 million (€5.8 million) (€252.5 million) (€37.6 million) (€363.7
Slide 9: EBIT
EBIT € million 20.7 16.5 10.1 27.2 11.1 16.2 5.1 5.7 -1.4 -5.1 -5.5 -0.3 -0.6 -11.2 -0.3 -6.4 H1 2012(1) H1 2013 Q1 2013 Q2 2013 EBIT margin 3.0% 1.5% -2.2% 4.4% EBIT decline in H1 compared to previous year was caused by lower business volume, in particular at DEUTZ Customised Solutions, and higher
Slide 10: Net income
Net income H1 2012(1) H1 2013 € million 20.7 7.0 1.6 12.1 10.1 2.6 2.1 5.4 EBIT Net Income Net EBIT Net Income Net interest taxes income interest taxes income expenses expenses Net income decreased by €6.7 million in H1 vs. previous year However, Q2 net income improved by €19.2 million qoq Net inter
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million Gross spending 46.8 Reimbursements 10.8 34.6 30.2 Net spending 7.9 1.3 20.1 1.7 36.0 26.7 28.9 18.4 Net R&D H1 2012 H1 2013 H1 2012 H1 2013 spending 5.3% 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 207.3 169.3 H1 2012 H1 2013 H1 2012 H1 2013 -44.9 Working capital ratio 14.0% 13.3% -118.1 (30 June) Substantial improvement of net financial position by Decrease of working capital by €38.0 million yoy €73.2
Slide 13: Equity ratio and funding
Equity ratio and funding € million 1,114.6 1,070.7 41.1% 43.1% 458.5 461.8 204 1 14 34 H1 H1 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 strong equity ratio of 43.1% (+ 2.0%-p
Slide 14: Overview of segments: DEUTZ Compact Engines
Overview of segments: DEUTZ Compact Engines H1 H1 Change Q2 Q1 Change € million 2013 2012 in % € million 2013 2013 in % New orders 700.5 548.8 27.6 New orders 372.2 328.3 13.4 Unit sales 79,132 84,611 -6.5 Unit sales 45,412 33,720 34.7 Revenue 546.3 534.8 2.2 Revenue 306.6 239.7 27.9 EBIT -5.5 -1.4(
Slide 15: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions H1 H1 Change Q2 Q1 Change € million 2013 2012 in % € million 2013 2013 in % New orders 143.0 152.2 -6.0 New orders 82.8 60.2 37.5 Unit sales 6,775 9,242 -26.7 Unit sales 4,257 2,518 69.1 Revenue 115.8 146.2 -20.8 Revenue 65.6 50.2 30.7 EBIT 16.2 27.2(
Slide 16: Summary: key financial development
Summary: key financial development Record order intake & strong book-to-bill ratio Higher production level leading to operating leverage in Q2 Lower R&D spending; but higher scheduled amortisation Significant improvement of net financial position and free cash flow Sound balance sheet; equity ratio
Slide 17: Agenda
Agenda Review H1 2013 Outlook Annex Conference Call H1 2013 8 August 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 Positive operating leverage expected to continue in H2 on the back of the good
Slide 19: Agenda
Agenda Review H1 2013 Outlook Annex Conference Call H1 2013 8 August 2013 19
Slide 20: Summary of key financials (I)
Summary of key financials (I) € million H1 2013 H1 2012(1) Change (%) Revenue 662.1 681.0 -2.8 EBITDA 55.8 57.4 -2.8 EBIT 10.1 20.7 -51.2 EBIT margin (%) 1.5 3.0 -- Net income 5.4 12.1 -55.4 Basic earnings per share (€) 0.04 0.10 -60.0 Number of employees (30 June) 4,030 4,042 -0.3 (1) Restated Conf
Slide 21: Summary of key financials (II)
Summary of key financials (II) € million H1 2013 H1 2012(1) Change (%) Total assets 1,070.7 1,114.6 -3.9 Equity 461.8 458.5 0.7 Equity ratio (%) 43.1 41.1 -- Cash flow from operating activities 49.0 16.8 >100.0 Free cash flow 3.4 -48.4 -- Net financial position -44.9 -118.1 -62.0 Working capital (as
Slide 22: Income statement
Income statement € million H1 2013 H1 2012(1) Change (%) Revenue 662.1 681.0 -2.8 Cost of goods sold -570.0 -585.2 -2.6 Research and development costs -29.8 -19.6 52.0 Selling expenses -31.4 -31.0 1.3 Administrative expenses -17.5 -17.1 2.3 Other operating income 6.8 11.9 -42.9 Other operating expen
Slide 23: Balance sheet: assets
Balance sheet: assets 30 June 31 Dec Change € million 2013 2012(1) (%) Non-current assets (excluding deferred tax assets) 610.6 621.3 -1.7 Deferred tax assets 26.9 27.4 -1.8 Inventories 224.7 184.4 21.9 Trade receivables 126.9 116.1 9.3 Other receivables and assets 34.3 32.8 4.6 Cash and cash equiva
Slide 24: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 30 June 31 Dec Change € million 2013 2012(1) (%) Equity 461.8 452.6 2.0 Provisions for pensions and other post-retirement benefits 173.6 181.8 -4.5 Other provisions 27.0 25.4 6.3 Financial liabilities 89.7 99.6 -9.9 Other liabilities 4.1 5.0 -18.0 Non-current li
Slide 25: Cash flow statement (condensed)
Cash flow statement (condensed) € million H1 2013 H1 2012(1) EBIT 10.1 20.7 Cash flow from operating activities (total) 49.0 16.8 Capital expenditure on intangible assets, property, plant and equipment and investments -43.1 -59.2 Proceeds from the sale of non-current assets 0.3 0.3 Cash flow from in
Slide 26: Overview of segments, H1 2013
Overview of segments, H1 2013 H1 H1 Change H1 H1 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 700.5 548.8 27.6 DEUTZ Compact Engines 79,132 84,611 -6.5 DEUTZ Customised Solutions 143.0 152.2 -6.0 DEUTZ Customised Solutions 6,775 9,242 -26.7 Total for ope
Slide 27: Overview of segments, Q2 2013
Overview of segments, Q2 2013 Q2 Q2 Change Q2 Q2 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 372.2 252.3 47.5 DEUTZ Compact Engines 45,412 43,032 5.5 DEUTZ Customised Solutions 82.8 58.7 41.1 DEUTZ Customised Solutions 4,257 4,360 -2.4 Total for operati
Slide 28: Employees
Employees 30 June 30 June Change 2013 2012 (%) Cologne 2,430 2,498 -2.7 Ulm 395 424 -6.8 Other German operations 283 290 -2.4 Germany 3,108 3,212 -3.2 Foreign operations 922 830 11.1 DEUTZ Group 4,030 4,042 -0.3 Conference Call H1 2013 8 August 2013 28
Slide 29: Financial calendar & contact details
Financial calendar & contact details Interim report 1st to 3rd quarter 2013 7 November 2013 Annual report 2013 20 March 2014 Annual general meeting 7 May 2014 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@de
Slide 30: 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.