Deutz Ag · XETR:DEZ
Deutz — FY2013 Earnings Presentation
32 slides from Deutz's earnings presentation, Mar 20, 2014
Slide 1: Financial year 2013
The Origin of HighTech. Financial year 2013 20 March 2014 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review FY 2013 Outlook Annex Financial year 2013 20 March 2014 2
Slide 3: Key figures
Key figures FY 2013 yoy € million Order intake 1,649.7 +33.4% Revenue 1,453.2 +12.5% EBITDA 142.0 +16.7% EBIT 47.5 +28.0% Net financial debt 31.7 -34.8% DEUTZ delivered on all financial targets Financial year 2013 20 March 2014 3
Slide 4: Highlights
Highlights ■ 150 years DEUTZ – a tradition of achievement ■ Record order intake ■ Soaring agricultural machinery business ■ Tier 4 engines TCD 2.9 and TCD 3.6 attract new customers ■ Chinese production Joint Venture with AB Volvo founded in 2013 ■ Dividend of 0.07 € per share (subject to AGM approva
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million 33.4% 2.9% 12.5% 1,649.7 178,774 184,028 264.2 16,875 16,064 1,453.2 1,237.1 1,291.9 264.4 276.5 286.9 1,385.5 161,899 167,964 1,188.8 960.6 1,005.0 2012 2013 2012 2013 2012 2013 Strong increase in order intake Higher proportion
Slide 6: Book-to-bill ratio
Book-to-bill ratio Q4 Q3 Q2 Q1 Q4 € million 2013 2013 2013 2013 2012 Order intake 446.1 360.1 455.0 388.5 276.6 Revenue 410.1 381.0 372.2 289.9 322.5 Book-to-bill ratio 1.09x 0.95x 1.22x 1.34x 0.86x Orders on hand 366.1 329.5 352.9 272.1 173.0 Q4 book-to-bill ratio at 1.09x Orders up 61.2% yoy and 2
Slide 7: Revenue development
Revenue development € million 405.5 410.1 372.2 381.0 336.9 344.1 322.5 288.4 289.9 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Positive trend in the course of FY 2013 Financial year 2013 20 March 2014 7
Slide 8: Revenue split
Revenue split Revenue split by application, 2013 Revenue split by region, 2013(1) (2012) (2012) Other 2% Mobile Machinery 33% Africa/Middle East 5% Europe (excl. Germany) 57% €30.1 million €481.6 million €70.4 million €824.6 million (€15.3 million) (€477.5 million) (€83.9 million) (€668.3 million) S
Slide 9: EBIT
EBIT € million 37.1 47.5 46.3 39.0 20.3 17.1 9.8 13.0 7.3 8.7 0.1 7.2 7.0 0.3 -16.5 -0.2 2012(1) 2013 Q3 2013 Q4 2013 EBIT margin 2.9% 3.3% 4.5% 5.0% EBIT increased by €10.4 million (+28.0%) yoy Business accelerated in FY 2013: three consecutive quarters of improved profitability Margin burdened by
Slide 10: Operating profit & net income
Operating profit & net income 2012(1) 2013 € million 142.0 94.5 121.7 84.6 47.5 6.0 5.5 37.1 10.6 36.0 5.5 21.0 EBITDA D&A EBIT Net Income Net EBITDA D&A EBIT Net Income Net interest taxes(2) income interest taxes income expenses expenses EBITDA improved by €20.3 million (+16.7% yoy) Net income incr
Slide 11: Earnings & dividend per share
Earnings & dividend per share € per share 0.30 0.17 Earnings per share Dividend per share (1) 0.07 2012 2013 Proposed dividend €0.07 per share Dividend tax exempt for domestic investors (1) Board proposal to be submitted to the AGM Financial year 2013 20 March 2014 11
Slide 12: R&D & capital expenditure
R&D & capital expenditure R&D Capital expenditure (excl. R&D) € million Gross expenditure 82.7 71.1 69.0 Reimbursements 20.6 2.6 18.5 Net expenditure 45.0 2.5 62.1 66.4 52.6 42.5 2012 2013 2012 2013 Net R&D expenditure 4.8% 3.6% ratio (1) Net R&D expenditure decreased in line with our Capital expend
Slide 13: Working capital & operating cash flow
Working capital & operating cash flow Working capital Operating cash flow € million 172.3 141.6 104.9 105.0 2012 2013 2012 2013 Working capital ratio 11.0% 11.9% (31 Dec) Working capital increased due to higher business Operating cash flow stable volume Higher operating profit was compensated by hig
Slide 14: Free cash flow generation & net financial position
Free cash flow generation & net financial position Free cash flow Net financial position € million 2012 2013 12.6 13.8 -31.7 -48.6 2012 2013 Third consecutive year with positive free cash flow Net financial position improved by €16.9 million Free cash flow used to reduce net financial position Finan
Slide 15: Equity ratio & funding
Equity ratio & funding € million 1,121.0 1,035.9 43.7% 45.0% 452.6 504.7 204 8 14 27 (1) 2012 2013 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 (residual term) & duration of credit lines Sound balance sheet with strong equity ratio
Slide 16: Segments: DEUTZ Compact Engines
Segments: DEUTZ Compact Engines Change Q4 Q3 Change € million 2013 2012 in % € million 2013 2013 in % New orders 1,385.5 960.6 44.2 New orders 381.9 303.1 26.0 Unit sales 167,964 161,899 3.7 Unit sales 43,962 44,870 -2.0 Revenue 1,188.8 1,005.0 18.3 Revenue 327.4 315.1 3.9 EBIT 8.7 -16.5(1) -- EBIT
Slide 17: Segments: DEUTZ Customised Solutions
Segments: DEUTZ Customised Solutions Change Q4 Q3 Change € million 2013 2012 in % € million 2013 2013 in % New orders 264.2 276.5 -4.4 New orders 64.2 57.0 12.6 Unit sales 16,064 16,875 -4.8 Unit sales 5,367 3,922 36.8 Revenue 264.4 286.9 -7.8 Revenue 82.7 65.9 25.5 EBIT 39.0 46.3(1) -15.8 EBIT 13.0
Slide 18: Summary: key financial development
Summary: key financial development All key figures improved & FY 2013 targets achieved Record order intake and strong backlog Lower R&D spending; scheduled amortisation increased Significant improvement of net income Dividend payment proposed to the AGM Sound balance sheet and low net debt Financial
Slide 19: Agenda
Agenda Review FY 2013 Outlook Annex Financial year 2013 20 March 2014 19
Slide 20: Financial outlook
Financial outlook FY 2013 reported Guidance FY 2014 € million low double Revenue 1,453.2 digit %-growth EBIT margin before one-offs 3.3 % > 4.0 % Net R&D spending ratio(1) 3.6 % slight decline Net capex (excl. R&D)(1) 42.5 60 - 70 (1) Net of reimbursements Revenue growth supported by new customers,
Slide 21: Agenda
Agenda Review FY 2013 Outlook Annex Financial year 2013 20 March 2014 21
Slide 22: Summary of key financials (I)
Summary of key financials (I) € million 2013 2012(1) Change (%) Revenue 1,453.2 1,291.9 12.5 EBITDA 142.0 121.7 16.7 EBIT 47.5 37.1 28.0 EBIT margin (%) 3.3 2.9 -- Net income 36.0 21.0 71.4 Basic earnings per share (€) 0.30 0.17 76.5 Dividend per share (€) 0.07 -- -- Number of employees (31 December
Slide 23: Summary of key financials (II)
Summary of key financials (II) € million 2013 2012(1) Change (%) Total assets 1,121.0 1,035.9 8.2 Equity 504.7 452.6 11.5 Equity ratio (%) 45.0 43.7 -- Cash flow from operating activities 105.0 104.9 0.1 Free cash flow 13.8 12.6 9.5 Net financial position -31.7 -48.6 34.8 Working capital 172.3 141.6
Slide 24: Income statement
Income statement € million 2013 2012(1) Change (%) Revenue 1,453.2 1,291.9 12.5 Cost of goods sold -1,257.4 -1,117.7 12.5 Research and development costs -58.7 -44.1 33.1 Selling expenses -62.6 -60.2 4.0 Administrative expenses -33.5 -30.8 8.8 Other operating income 17.0 37.0 -54.0 Other operating ex
Slide 25: Balance sheet: assets
Balance sheet: assets 31 Dec 31 Dec Change € million 2013 2012(1) (%) Non-current assets (excluding deferred tax assets) 596.6 621.3 -4.0 Deferred tax assets 30.8 27.4 12.4 Inventories 224.6 184.4 21.8 Trade receivables 149.1 116.1 28.4 Other receivables and assets 60.6 32.8 84.8 Cash and cash equiv
Slide 26: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Dec 31 Dec Change € million 2013 2012(1) (%) Equity 504.7 452.6 11.5 Provisions for pensions and other post-retirement benefits 168.6 181.8 -7.3 Other provisions 37.2 25.4 46.5 Financial liabilities 83.0 99.6 -16.7 Other liabilities 3.7 5.0 -26.0 Non-current
Slide 27: Cash flow statement (condensed)
Cash flow statement (condensed) € million 2013 2012(1) EBIT 47.5 37.1 Cash flow from operating activities (total) 105.0 104.9 Capital expenditure on intangible assets, property, plant and equipment and investments -85.2 -104.0 Proceeds from the sale of non-current assets 0.6 22.6 Cash flow from inve
Slide 28: Overview of segments, 2013
Overview of segments, 2013 Change Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 1,385.5 960.6 44.2 DEUTZ Compact Engines 167,964 161,899 3.7 DEUTZ Customised Solutions 264.2 276.5 -4.4 DEUTZ Customised Solutions 16,064 16,875 -4.8 Total for operating acti
Slide 29: Overview of segments, Q4 2013
Overview of segments, Q4 2013 Q4 Q4 Change Q4 Q4 Change New orders (€ million) 2013 2012 (%) Unit sales 2013 2012 (%) DEUTZ Compact Engines 381.9 214.0 78.5 DEUTZ Compact Engines 43,962 42,882 2.5 DEUTZ Customised Solutions 64.2 62.6 2.6 DEUTZ Customised Solutions 5,367 3,671 46.2 Total for operatin
Slide 30: Employees
Employees 31 Dec 31 Dec Change 2013 2012 (%) Cologne 2,403 2,489 -3.5 Ulm 408 413 -1.2 Other German operations 284 287 -1.0 Germany 3,095 3,189 -2.9 Foreign operations 857 802 6.9 DEUTZ Group 3,952 3,991 -1.0 Financial year 2013 20 March 2014 30
Slide 31: Financial calendar & contact details
Financial calendar & contact details Interim report 1st quarter 2014 5 May 2014 Annual general meeting 7 May 2014 Interim report 1st half 2014 7 August 2014 Interim report 1st to 3rd quarter 2014 6 November 2014 Contact details Christian Krupp Tel:+49 (0) 221 822 5400 Ottostrasse 1 Fax:+49 (0) 221 8
Slide 32: 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.