Deutz Ag · XETR:DEZ
Deutz — H1 2023 Earnings Presentation
22 slides from Deutz's earnings presentation, Aug 10, 2023
Slide 1: DEUTZ – Results for H1 2023
DEUTZ – Results for H1 2023 – August 10, 2023
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 & highlights of H1 2023
Agenda Agenda Overview & highlights of H1 2023 Dr. Sebastian C. Schulte | CEO 3
Slide 4: Key operational and strategic developments
Key operational and strategic developments New orders Unit sales Revenue Adjusted EBIT1 +€19.9 million to DEUTZ engines -8.0% to €62.5 million €991.7 million +1.1% to +10.0% to EBIT margin1 6.1% (+1.5pp) Book-to-bill ratio: 0.97 91,451 units €1,023.5 million Classic segment 8.7% (+1.9pp) Free cash f
Slide 5: Strategy progress report: Classic
Strategy progress report: Classic Classic ▪ Margin remains high thanks to success of performance initiatives ▪ New logistics concept established at headquarters in Cologne − Progress with warehouse consolidation ▪ Further stabilization of the supply chain and production processes ▪ Successful ramp-u
Slide 6: Strategy progress report: Green
Strategy progress report: Green Green ▪ Project pipeline being added to all the time − Ten battery-electric system projects ongoing with OEM partners − Five H2 projects ongoing − LOI signed for small-scale production run of H2 gensets ▪ Ongoing process established to evaluate new business models and
Slide 7: Strategy progress report: Service
Strategy progress report: Service Service ▪ Strong first half of the year: − Revenue rises to €237.5 million (+6.4%) − New orders increase to €241.5 million (+5.0%) ▪ Sharp rise in volume of business, particularly for parts sales and DEUTZ Xchange ▪ Ongoing expansion of the inhouse service network ▪
Slide 8: Expansion of service business in USA, Chile, and northern Europe
Expansion of service business in USA, Chile, and northern Europe Service ▪ Opening of the ninth DEUTZ ▪ Agreement signed to purchase ▪ Acquisition of the Diesel Motor service center (DPC) in the USA service partner M. Hochschild Nordic Group (Sweden, Finland, S.A., based in Chile Denmark) ▪ DPC serv
Slide 9: Agenda: H1 2023 in numbers
Agenda Agenda H1 2023 in numbers Bild auszutauschen Timo Krutoff | CFO 9
Slide 10: Results for H1 2023
Results for H1 2023 New orders Unit sales1 Revenue € million Units € million -8.0% -1.3% +10.0% 108,741 107,345 1,077.6 1,023.5 991.7 930.4 90,462 91,451 18,279 15,894 DEUTZ Torqeedo H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 ▪ New orders below the level achieved in the prior-year period due to
Slide 11: Revenue for H1 2023 in detail
Revenue for H1 2023 in detail Revenue breakdown by region Revenue breakdown by application segment H1 2023 (H1 2022) H1 2023 (H1 2022) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (3%) 39% (40%) 6% (5%) 28% (30%) €36.1 million €396.8 million €58.5 million €28
Slide 12: Strong improvement in profitability
Strong improvement in profitability Adjusted EBIT (€ million) ▪ Adjusted EBIT1,2 improved to €62.5 million EBIT margin before exceptional items (H1 2022: €42.6 million) due to: − Economies of scale thanks to increased business volume +€3.5 million / 0.4pp yoy 32.1 − Positive product mix effects 30.4
Slide 13: 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 € million € million € million +4.3% +234.0% +10.8% 5.0% 18.7% 4.8% 88.5 17.7% 6.2 383.6 46.8 48.8 346.3 ~52 26.5 3.2 H1 2022 H1 2023 H1 2022 H1 2023 Dec. 31, 2022 Jun. 30, 2023 R&D ratio1
Slide 14: Cash flow and net financial position
Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net financial position € million € million € million +€34.3 million +€33.0 million -€17.2 million 8.3 48.9 14.6 -94.6 -90.2 -164.2 -181.4 -24.7 H1 2022 H1 2023 H1 2022 H1 2023 Dec. 31, 2022 Jun. 30, 2023 Thereof
Slide 15: Balance sheet remains solid
Balance sheet remains solid Equity and equity ratio Lines of credit € million € million / term and repayment profile 1,596.2 1,475.4 250 45.3% 44.6% 145 668.8 712.3 75 0 Dec. 31, 2022 Jun. 30, 2023 Up to 1 year 1 to 5 years Total assets Equity Equity ratio Total sum of the Amounts utilized lines of
Slide 16: Results for H1 2023 | Classic segment
Results for H1 2023 | Classic segment New orders Unit sales Revenue Adjusted EBIT/margin € million Units € million € million -8.2% +1.1% +10.8% +41.4% 1,050.6 964.2 86.7 997.0 90,459 91,424 900.1 61.3 8.7% 6.8% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 ▪ New orders down compare
Slide 17: Results for H1 2023 | Green segment
Results for H1 2023 | Green segment New orders Unit sales1 Revenue Adjusted EBIT/margin € million Units € million € million +1.9% -12.9% -12.5% -34.8% 18,282 30.3 27.0 27.5 15,921 26.5 -59.7% -92.1% -18.1 -24.4 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 ▪ Stable new orders ▪ Fal
Slide 18: Agenda: Outlook
Agenda Agenda Outlook Dr. Sebastian C. Schulte | CEO 18
Slide 19: Full-year guidance for 2023
Full-year guidance for 2023 2022 2023e Unit sales 181,268 DEUTZ engines1 approx. 195,000 DEUTZ engines1 Revenue €1.95 billion approx. €2.1 billion Adjusted EBIT margin2 4.6% approx. 5.0% Free cash flow minus €16.6 million Mid-double-digit million euro amount3 Full-year guidance for 2023 confirmed fo
Slide 20: Medium-term targets based on the Dual+ strategy
Medium-term targets based on the Dual+ strategy Outlook for 2025 Revenue > €2.5 billion Service business's approx. share of revenue €600 million Adjusted 6.0 to 7.0% EBIT margin1 DEUTZ confirms its medium-term targets for 2025 20 1 Before exceptional items. DEUTZ H1 2023 | Aug. 10, 2023
Slide 21: 2023 financial calendar & contact details
2023 financial calendar & contact details Upcoming financial dates Roadshow | virtual August 28 DEUTZ Capital Markets Day September 12 Berenberg & Goldman Sachs Conference | September 19 Munich Quirin European MidCap Conference | October 10 Paris Contact Christian Ludwig, CFA SVP Communications & IR
Slide 22: Any questions?
Thank you for your attention! Any questions?