Deutz Ag · XETR:DEZ
Deutz — Q1-Q3 2014 Earnings Presentation
30 slides from Deutz's earnings presentation, Nov 6, 2014
Slide 1: Q1-Q3 2014 results
The Origin of HighTech. Q1-Q3 2014 results 6 November 2014 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review Q1-Q3 2014 Outlook Annex Q1-Q3 2014 6 November 2014 2
Slide 3: Key figures
Key figures Q1-Q3 2014 yoy Q3 2014 qoq € million Order intake 1,076.8 -10.5% 330.0 -0.8% Revenue 1,177.9 +12.9% 424.5 +3.4% EBIT (before one-offs) 22.8 -16.2% 2.7 -85.2% Adjusted EBIT(1) 43.2 +58.8% 23.1 +26.9% Net financial position 1.0 +€54.2 million 1.0 +€32.8 million Result burdened by extraordi
Slide 4: Highlights
Highlights ■ Double digit revenue growth due to strong demand for smaller engine series ahead of emission regulation change ■ Order intake impacted by softer end markets, in particular in agricultural machinery ■ Operating profit burdened with extraordinary provision for warranty costs in Q3 but goo
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million -10.5% 15.1% 12.9% 1,203.6 155,099 1,177.9 200.0 1,076.8 8,575 1,043.1 134,699 175.1 194.3 10,697 181.7 146,524 1,003.6 124,002 1,002.8 882.5 861.4 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2013 Q1-Q3 2014 Double-digit g
Slide 6: Revenue development
Revenue development € million 410.7 424.5 410.1 372.2 381.0 342.7 322.5 288.4 289.9 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q3 revenue up 11.4% yoy and 3.4% sequentially Q1-Q3 2014 6 November 2014 6
Slide 7: Revenue split
Revenue split Revenue split by application, Q1-Q3 2014 Revenue split by region, Q1-Q3 2014(1) (Q1-Q3 2013) (Q1-Q3 2013) Other 1% Mobile Machinery 49% Africa / Middle East 4% Europe (excl. Germany) 50% €15.4 million €582.2 million €45.3 million €586.4 million (€16.2 million) (€353.3 million) (€48.8 m
Slide 8: EBIT (before one-offs)
EBIT (before one-offs) € million 43.2 18.5 27.2 22.8 23.1 18.2 4.2 26.0 18.5 25.3 7.2 19.7 10.5 2.7 1.7 4.9 0.5 4.2 -0.7 -0.5 -0.6 -0.6 -0.8 -0.8 Q1-Q3 Q1-Q3 adjusted Q2 Q3 adjusted (1) 2013 2014 Q1-Q3 2014 2014 2014 Q3 2014 (1) EBIT margin 2.6% 1.9% 3.7% 4.4% 0.6% 5.4% Q3 2014 operating profit burd
Slide 9: Operating profit & net income
Operating profit & net income Q1-Q3 2013 Q1-Q3 2014 € million 96.8 69.6 94.5 71.7 27.2 4.4 1.9 20.9 22.8 13.9 8.9 5.0 0.5 3.4 EBITDA D&A EBIT Interest Income Net EBITDA D&A EBIT Restruc- EBIT Interest Income Net before before expenses taxes income before before turing after expenses taxes income one
Slide 10: R&D & capital expenditure
R&D & capital expenditure R&D Capital expenditure (excl. R&D) € million Gross expenditure 54.3 53.6 Reimbursements 13.8 13.8 29.4 30.4 Net expenditure 2.1 1.9 40.5 39.8 27.3 28.5 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2013 Q1-Q3 2014 Net R&D expenditure 3.9% 3.4% ratio(1) R&D expenditure decreased slightly; R&
Slide 11: Working capital & operating cash flow
Working capital & operating cash flow Working capital Operating cash flow € million 214.5 189.0 86.9 61.7 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2013 Q1-Q3 2014 Working capital ratio 13.8% 13.5% (30 Sep) Working capital increase attributable to higher Substantial cash flow improvement (+40.8%) due to unit sale
Slide 12: Free cash flow generation & net financial position
Free cash flow generation & net financial position Free cash flow Net financial position € million 1.0 57.5 13.8 -53.2 2013 Q3 2014 (LTM) Q1-Q3 2013 Q1-Q3 2014 Strong free cash flow generation on the back of Cash flow used to pay dividend of €8.5 million and to strong operating cash flow reduce net
Slide 13: Equity ratio & funding
Equity ratio & funding € million 1,180.3 1,105.8 42.8% 42.2% 473.0 497.6 204 15 14 16 Q1-Q3 2013 Q1-Q3 2014 up to up to up to up to 1 year 2 years 5 years 10 years Total assets Equity xx.x% Equity ratio Repayment schedule Duration of credit lines Sound balance sheet; equity ratio >40% Medium- to lon
Slide 14: Segments: DEUTZ Compact Engines
Segments: DEUTZ Compact Engines Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2014 2013 in % € million 2014 2014 in % New orders 882.5 1,003.6 -12.1 New orders 270.4 267.5 1.1 Unit sales 146,524 124,002 18.2 Unit sales 53,589 51,279 4.5 Revenue 1,002.8 861.4 16.4 Revenue 368.2 347.8 5.9 EBIT (before one
Slide 15: Segments: DEUTZ Customised Solutions
Segments: DEUTZ Customised Solutions Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2014 2013 in % € million 2014 2014 in % New orders 194.3 200.0 -2.8 New orders 59.6 65.1 -8.4 Unit sales 8,575 10,697 -19.8 Unit sales 2,431 3,343 -27.3 Revenue 175.1 181.7 -3.6 Revenue 56.3 62.9 -10.5 EBIT (before one-of
Slide 16: Summary
Summary Double digit growth in revenue and unit sales Operating profit burdened by extraordinary charges Substantial improvement of underlying operating profit Strong free cash flow generation and positive net financial position Site optimisation measures well on track Q1-Q3 2014 6 November 2014 16
Slide 17: Agenda
Agenda Review Q1-Q3 2014 Outlook Annex Q1-Q3 2014 6 November 2014 17
Slide 18: Financial outlook 2014
Financial outlook 2014 FY 2013 Previous New € million reported FY 2014 Guidance FY 2014 Guidance Revenue low double 1,453.2 ~ 1,500 digit %-growth EBIT margin (before one-offs) 3.3 % > 4.0 % ~2% Net R&D spending ratio(1) 3.6 % slight decline slight decline Net capex (excl. R&D)(1) 42.5 50 - 60 < 50
Slide 19: Agenda
Agenda Review Q1-Q3 2014 Outlook Annex Q1-Q3 2014 6 November 2014 19
Slide 20: Summary of key financials (I)
Summary of key financials (I) € million Q1-Q3 2014 Q1-Q3 2013 Change (%) Revenue 1,177.9 1,043.1 12.9 EBITDA (before one-offs) 94.5 96.8 -2.4 EBIT (before one-offs) 22.8 27.2 -16.2 EBIT margin (before one-offs) (%) 1.9 2.6 -- Net income 3.4 20.9 -83.7 Basic earnings per share (€) 0.03 0.17 -82.4 Num
Slide 21: Summary of key financials (II)
Summary of key financials (II) € million Q1-Q3 2014 Q1-Q3 2013 Change (%) Total assets 1,180.3 1,105.8 6.7 Equity 497.6 473.0 5.2 Equity ratio (%) 42.2 42.8 -- Cash flow from operating activities 86.9 61.7 40.8 Free cash flow 39.6 -4.1 -- Net financial position 1.0 -53.2 -- Working capital 214.5 189
Slide 22: Income statement
Income statement € million Q1-Q3 2014 Q1-Q3 2013 Change (%) Revenue 1,177.9 1,043.1 12.9 Cost of goods sold -1.032.5 -892.8 15.6 Research and development costs -49.2 -45.8 7.4 Selling expenses -50.3 -46.8 7.5 Administrative expenses -25.5 -26.0 -1.9 Other operating income 15.5 9.8 58.2 Other operati
Slide 23: Balance sheet: assets
Balance sheet: assets 30 Sep 31 Dec Change € million 2014 2013 (%) Non-current assets (excluding deferred tax assets) 579.7 596.6 -2.8 Deferred tax assets 43.1 30.8 39.9 Inventories 279.1 224.6 24.3 Trade receivables 135.7 149.1 -9.0 Other receivables and assets 54.1 60.6 -10.7 Cash and cash equival
Slide 24: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 30 Sep 31 Dec Change € million 2014 2013 (%) Equity 497.6 504.7 -1.4 Provisions for pensions and other post-retirement benefits 179.9 168.6 6.7 Other provisions 61.3 37.2 64.8 Financial liabilities 72.4 83.0 -12.8 Other liabilities 14.1 3.7 >100 Non-current liab
Slide 25: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1-Q3 2014 Q1-Q3 2013 EBIT 8.9 27.2 Cash flow from operating activities (total) 86.9 61.7 Capital expenditure on intangible assets, property, plant and equipment and investments -47.4 -61.6 Proceeds from the sale of non-current assets 5.1 0.4 Cash flow from
Slide 26: Overview of segments, Q1-Q3 2014
Overview of segments, Q1-Q3 2014 Q1-Q3 Q1-Q3 Change Q1-Q3 Q1-Q3 Change New orders (€ million) 2014 2013 (%) Unit sales 2014 2013 (%) DEUTZ Compact Engines 882.5 1,003.6 -12.1 DEUTZ Compact Engines 146,524 124,002 18.2 DEUTZ Customised Solutions 194.3 200.0 -2.8 DEUTZ Customised Solutions 8,575 10,69
Slide 27: Overview of segments, Q3 2014
Overview of segments, Q3 2014 Q3 Q3 Change Q3 Q3 Change New orders (€ million) 2014 2013 (%) Unit sales 2014 2013 (%) DEUTZ Compact Engines 270.4 303.1 -10.8 DEUTZ Compact Engines 53,589 44,870 19.4 DEUTZ Customised Solutions 59.6 57.0 4.6 DEUTZ Customised Solutions 2,431 3,922 -38.0 Total for opera
Slide 28: Employees
Employees 30 Sep 30 Sep Change 2014 2013 (%) Cologne 2,432 2,398 1.4 Ulm 389 414 -6.0 Other German operations 292 284 2.8 Germany 3,113 3,096 0.5 Foreign operations 863 916 -5.8 DEUTZ Group 3,976 4,012 -0.9 Q1-Q3 2014 6 November 2014 28
Slide 29: Financial calendar & contact details
Financial calendar & contact details Annual report 2014 19 March 2015 Annual general meeting 29 April 2015 Interim report 1st quarter 2015 5 May 2015 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 G
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.