Deutz Ag · XETR:DEZ
Deutz — H1 2021 Earnings Presentation
30 slides from Deutz's earnings presentation, Aug 12, 2021
Slide 1: DEUTZ – Results for H1 2021
DEUTZ – Results for H1 2021 – August 12, 2021
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 2021
Agenda Agenda Overview & highlights of H1 2021 Dr. Frank Hiller | CEO 3
Slide 4: Operational and strategic highlights
Operational and strategic highlights Significant new order growth, due in part to spending being brought forward; orders on hand up by around 110% year on year Double-digit percentage increases in unit sales and revenue; all application segments saw rises, with the exception of Stationary Equipm
Slide 5: Global Transform for Growth efficiency program on track
Global Transform for Growth efficiency program on track Timeline for achieving cost savings1 € million Targeted cost savings to be achieved through reduction in 100 staff costs and reduction in operating and warranty costs Voluntary redundancy program taken up by 361 employees − 109 employees ha
Slide 6: Continued successful implementation of China strategy
Continued successful implementation of China strategy Further success for joint venture with SANY in H1 2021: DEUTZ Hunan (SANY JV) production planning Units (thousands) − Unit sales of approx. 15,000 engines 250 − Revenue of approx. €125 million Target 200 − EBIT contribution of approx. €3 millio
Slide 7: Expansion of the profitable service business is on course
Expansion of the profitable service business is on course Revenue New orders Orders on hand € million € million € million Our service target: +14.5% +19.7% +62.5% 195.4 205.0 approx. €400 million 170.7 171.3 35.1 21.6 revenue in 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 Stronger busines
Slide 8: Long-term partnership with AGCO agreed
Long-term partnership with AGCO agreed Supply of updated 6.1 liter and 4.1 liter engines for use in selected Fendt tractors Collaboration on development of future technologies Possibility of closer collaboration on sub-150 hp engines and their components being explored 8
Slide 9: Supply agreement with ASKO
Supply agreement with ASKO New customer in Turkey, whose existing engine suppliers are to be phased out and replaced by DEUTZ Long-term supply agreement covering the four brands MST, Basak Traktör, Starken and ELS Lift Medium-term expectation is for annual unit sales in the low tens of thousan
Slide 10: Hydrogen engine ready for the market
Hydrogen engine ready for the market TCG 7.8 H2 engine meets eligibility criteria set by the EU for zero CO2 emission Designed for use in stationary equipment, generators, and rolling stock Pilot application (stationary equipment for power generation) with a regional utility partner – schedule
Slide 11: Agenda: H1 2021 in numbers
Agenda Agenda H1 2021 in numbers Dr. Sebastian C. Schulte | CFO 11
Slide 12: Results for H1 2021
Results for H1 2021 New orders Unit sales Revenue € million Units € million +65.0% +26.8% +24.2% 1,028.8 93,627 approx. 100 73,859 18,196 770.2 623.6 16,244 620.0 < Thereof effects of spending < brought forward Thereof Torqeedo H1 2020 H1 2021 < H1 2020 H1 2021 < H1 2020 H1 2021 Significant increa
Slide 13: Revenue in detail
Revenue in detail Revenue breakdown by region Revenue breakdown by application segment H1 2021 (H1 2020) H1 2021 (H1 2020) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 3% (4%) 41% (41%) 7% (8%) 31% (30%) €25.6 million €318.6 million €58.5 million €238.5 million
Slide 14: Continued improvement in earnings
Continued improvement in earnings Operating profit (EBIT before exceptional items) (€ million) Operating profit in H1 20211 improves to €16.8 million EBIT margin before exceptional items (H1 2020: operating loss of €49.9 million) due to − absence of payments to suppliers going through insolvency +
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 € million € million € million -14.7% -13.6% +4.3% 7.5% 5.1% 18.1% 17.0% 46.2 39.4 38.9 235.0 245.1 33.6 16.8 10.4 H1 2020 H1 2021 H1 2020 H1 2021 Dec. 31, 2020 Jun. 30, 2021 R&D ratio1 The
Slide 16: 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 +€88.4 million +€95.4 million 44.7 9.7 -58.0 -61.4 -85.7 -83.8 -84.3 -43.7 H1 2020 H1 2021 H1 2020 H1 2021 Dec. 31, 2020 Jun. 30, 2021 Thereof lease liabiliti
Slide 17: Sufficient medium- and long-term funding options
Sufficient medium- and long-term funding options Equity and equity ratio Syndicated credit lines Long-term bank loans € million € million / term € million / repayment profile 1,253.5 1,180.5 160 45.3% 44.3% 150 535.2 555.1 10.3 8.4 0 65 0.0 Dec. 31, 2020 Dec. 31, 2021 up to 1 year 1 to 5 years up to
Slide 18: Agenda: Guidance
Agenda Agenda Guidance Dr. Frank Hiller | CEO 18
Slide 19: Group guidance for 2021
Group guidance for 2021 Guidance for 2021 Unit sales 140,000 to 155,000 DEUTZ engines1 Revenue €1.5 billion to €1.6 billion EBIT margin before exceptional 1.0–2.0 % items Free cash flow Negative low double-digit million euro amount (previously: negative low- to mid-double-digit million euro amount)
Slide 20: Medium-term targets for 2023/2024
Medium-term targets for 2023/2024 Technology-neutral approach to development of the product portfolio and expansion of the high-margin service business Our targets for 2023/2024: > €2 billion Implementation of regional growth initiatives Systematic implementation of the Transform for Growth ef
Slide 21: Save the date: Capital Markets Day 2021
SAVE THE DATE Agenda Capital Markets Day 2021 Wednesday, November 17, 2021 at the Coreum | Stockstadt am Rhein 21
Slide 22: Annex
DEUTZ Annex
Slide 23: Segment overview
Segment overview New orders H1 2021 H1 2020 YoY Revenue H1 2021 H1 2020 YoY € million change € million change (%) (%) DEUTZ Compact Engines 808.2 439.9 83.7 DEUTZ Compact Engines 589.5 453.7 29.9 DEUTZ Customized Solutions 182.3 165.4 10.2 DEUTZ Customized Solutions 153.7 145.0 6.0 Other 39.8 19.5 1
Slide 24: Income statement
Income statement € million H1 2021 H1 2020 Revenue 770.2 620.0 Cost of sales -631.0 -534.8 Research and development costs -45.9 -49.6 Selling and administrative expenses -79.7 -75.6 Other operating income 12.0 6.2 Other operating expenses -10.9 -15.8 Impairment of financial assets and reversals ther
Slide 25: Balance sheet: assets
Balance sheet: assets € million Jun. 30, 2021 Dec. 31, 2020 Property, plant and equipment 362.5 361.7 Intangible assets 188.7 197.2 Equity-accounted investments 54.8 50.3 Other financial assets 4.7 4.4 Non-current assets (before deferred tax assets) 610.7 613.6 Deferred tax assets 76.7 74.2 Non-curr
Slide 26: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities € million Jun. 30, 2021 Dec. 31, 2020 Issued capital 309.0 309.0 Additional paid-in capital 28.8 28.8 Other reserves -0.9 -3.9 Retained earnings and accumulated income 218.0 201.1 Equity attributable to shareholders of DEUTZ AG 554.9 535.0 Non-controlling intere
Slide 27: Cash flow statement (condensed)
Cash flow statement (condensed) € million H1 2021 H1 2020 EBIT 16.1 -49.9 Cash flow from operating activities 44.7 -43.7 Capital expenditure on intangible assets, property, plant and equipment and -32.6 -39.8 investments Proceeds from the sale of non-current assets 0.1 0.2 Cash flow from investing a
Slide 28: Questions & answers
Questions & answers 28
Slide 29: Thank you for your attention!
Thank you for your attention! 29
Slide 30: Financial calendar and contact details
Financial calendar and contact details Financial calendar Contact Q3 2021 quarterly statement November 10, 2021 Christian Ludwig, CFA SVP Communications & Investor Relations 2021 annual report March 17, 2022 +49 (0)221 822 3600 2022 Annual General Meeting April 28, 2022 christian.ludwig@deutz.com Q1