Deutz Ag · XETR:DEZ
Deutz — Q3 2015 Earnings Presentation
31 slides from Deutz's earnings presentation, Nov 5, 2015
Slide 1: Q1-Q3 2015 results
Q1-Q3 2015 results 5 November 2015 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review Q1-Q3 2015 Outlook Annex Q1-Q3 2015 results 5 November 2015 2
Slide 3: Key figures
Key figures Q1-Q3 2015 yoy Q3 2015 qoq € million Order intake 932.9 -13.4% 262.2 -25.0% Revenue 938.8 -20.3% 268.6 -23.7% EBITDA (before one-offs) 85.6 -9.4% 15.2 -58.4% EBIT (before one-offs) 10.6 -53.5% -9.7 -€19.9 million Net income 7.3 +€3.9 million -9.4 -€18.4 million Q3 2015 result depressed b
Slide 4: Market assessment
Market assessment 2015 Unit sales (equipment) Construction equipment Europe sideways 0% to -5% Construction equipment North America (previous: sideways) more than -40% Construction equipment China (previous: more than -30%) Agricultural Machinery Europe approx. -10% (previous: -5% to -10%) more than
Slide 5: Sales figures
Sales figures Order intake Unit sales Revenue € million Units € million -13.4% -30.9% -20.3% 155,099 1,177.9 1.076.8 8,575 175.1 194.3 932.9 938.8 107,236 208.9 9,640 208.7 146,524 882.5 1,002.8 724.0 97,596 730.1 Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2014 Q1-Q3 2015 Order intake decreas
Slide 6: Revenue development
Revenue development € million 410.1 410.7 424.5 381.0 342.7 352.3 352.1 318.1 268.6 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q3 2015 revenue decreased 36.7% yoy and 23.7% sequentially Previous year figures benefitted from engine pre-buys Quarter-on-quarter decline caused by noticeable s
Slide 7: Revenue split by region
Revenue split by region Q1-Q3 2015 (Q1-Q3 2014) Africa/Middle East 7 % Europe (excl. Germany) 47 % €68.5 million €438.2 million (€45.3 million) (€586.4 million) Asia-Pacific 10 % €91.3 million (€74.8 million) €938.8 million (€1,177.9 million) Americas 24 % Germany 12 % €223.5 million €117.3 million
Slide 8: Revenue split by application
Revenue split by application Q1-Q3 2015 (Q1-Q3 2014) Other 2 % Mobile Machinery 43 % €15.7 million €400.9 million (€15.4 million) (€582.2 million) Automotive 7 % €64.6 million (€56.8 million) Agricultural Machinery 12 % €938.8 million (€1,177.9 million) €113.1 million (€207.5 million) Stationary Equ
Slide 9: EBIT (before one-offs)
EBIT (before one-offs) € million 22.8 +7.5 -21.8 10.6 +2.1 Q1-Q3 2014 Q1-Q3 2015 EBIT margin 1.9% 1.1% Operating profit at DEUTZ Compact Engines burdened by negative scale effects in Q3 EBIT improvement at DEUTZ Customised Solutions driven by better capacity utilisation Segment Other benefitted from
Slide 10: Operating profit & net income
Operating profit & net income Q1-Q3 2014 Q1-Q3 2015 € million 94.5 71.7 85.6 75.0 8.0% 9.1% 22.8 13.9 8.9 5.0 10.6 0.0 10.6 3.1 0.2 7.3 0.5 3.4 EBITDA D&A EBIT Restruc- EBIT Interest Income Net EBITDA D&A EBIT Restruc- EBIT Interest Income Net before before turing after expenses taxes income before
Slide 11: R&D & capital expenditure
R&D & capital expenditure R&D Capital expenditure (excl. R&D) € million Gross expenditure 53.6 13.8 41.6 Reimbursements 36.3 0.4 Net expenditure 6.5 30.4 1.9 39.8 41.2 29.8 28.5 Net R&D Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2014 Q1-Q3 2015 expenditure ratio(1) 3.4% 3.2% R&D scaled back significantly after all
Slide 12: Working capital & operating cash flow
Working capital & operating cash flow Working capital Operating cash flow € million 231.1 214.5 86.9 43.6 Working Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2014 Q1-Q3 2015 capital ratio (30 Sep) 13.5% 17.9% Working capital increase (+7.7%) mainly due to Operating cash flow decrease driven by lower higher inventor
Slide 13: Free cash flow generation & net financial position
Free cash flow generation & net financial position Free cash flow(1) Net financial position € million 52.0 1.0 2.9 -3.1 2014 Q3 2015 (LTM) Q1-Q3 2014 Q1-Q3 2015 Last twelve months free cash flow decreased to Almost debt free €2.9 million due to lower operating cash flow (1) Free cash flow: cash flow
Slide 14: Equity ratio & funding
Equity ratio & funding € million 1,149.2 1,087.2 44.5% 46.1% 511.0 500.9 207 15 16 1 2014 Q1-Q3 2015 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 Equity ratio increased by 1.6%-points to 46.1% Medium- to lo
Slide 15: Segments: DEUTZ Compact Engines
Segments: DEUTZ Compact Engines Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2015 2014 in % € million 2015 2015 in % New orders 724.0 882.5 -18.0 New orders 194.0 281.1 -31.0 Unit sales 97,596 146,524 -33.4 Unit sales 26,243 37,758 -30.5 Revenue 730.1 1,002.8 -27.2 Revenue 201.8 277.3 -27.2 EBIT (befor
Slide 16: Segments: DEUTZ Customised Solutions
Segments: DEUTZ Customised Solutions Q1-Q3 Q1-Q3 Change Q3 Q2 Change € million 2015 2014 in % € million 2015 2015 in % New orders 208.9 194.3 7.5 New orders 68.2 68.6 -0.6 Unit sales 9,640 8,575 12.4 Unit sales 2,873 3,455 -16.8 Revenue 208.7 175.1 19.2 Revenue 66.8 74.8 -10.7 EBIT (before one-offs)
Slide 17: Summary
Summary Pronounced market slowdown in Q3 EBIT decrease due to scale effects at DEUTZ Compact Engines Focus Chinese production activities on DEUTZ Dalian Site optimisation in Germany well on track Strong balance sheet and solid net financial position Q1-Q3 2015 results 5 November 2015 17
Slide 18: Agenda
Agenda Review Q1-Q3 2015 Outlook Annex Q1-Q3 2015 results 5 November 2015 18
Slide 19: Financial outlook
Financial outlook 2014 Previous Revised € million reported 2015 guidance 2015 guidance Revenue 1,530.2 approx. -10 % approx. -20% EBIT margin (before one-offs) 2.1 % approx. 3 % approx. 0 % significant significant Net R&D expenditure(1) 53.1 decline decline Capex (excl. R&D)(1) 40.3 ~ 50 ~ 50 (1) Ne
Slide 20: Agenda
Agenda Review Q1-Q3 2015 Outlook Annex Q1-Q3 2015 results 5 November 2015 20
Slide 21: Summary of key financials (I)
Summary of key financials (I) € million Q1-Q3 2015 Q1-Q3 2014 Change (%) Revenue 938.8 1,177.9 -20.3 EBITDA (before one-offs) 85.6 94.5 -9.4 EBIT (before one-offs) 10.6 22.8 -53.5 EBIT margin (%) 1.1 1.9 -- Net income 7.3 3.4 >100 Basic earnings per share (€) 0.07 0.03 >100 Number of employees (30 S
Slide 22: Summary of key financials (II)
Summary of key financials (II) € million Q1-Q3 2015 Q1-Q3 2014 Change (%) Total assets 1,087.2 1,180.3 -7.9 Equity 500.9 497.6 0.7 Equity ratio (%) 46.1 42.2 -- Cash flow from operating activities 43.6 86.9 -49.8 Free cash flow(1) -9.5 39.6 -- Net financial position -3.1 1.0 -- Working capital 231.1
Slide 23: Income statement
Income statement € million Q1-Q3 2015 Q1-Q3 2014 Change (%) Revenue 938.8 1,177.9 -20.3 Cost of goods sold -792.4 -1,032.5 -23.3 Research and development costs -53.4 -49.2 8.5 Selling expenses -52.1 -50.3 3.6 Administrative expenses -26.8 -25.5 5.1 Other operating income 19.1 15.5 23.2 Other operati
Slide 24: Balance sheet: assets
Balance sheet: assets 30 Sep 31 Dec Change € million 2015 2014 (%) Non-current assets (excluding deferred tax assets) 537.2 563.6 -4.7 Deferred tax assets 65.0 62.2 4.5 Inventories 273.4 245.2 11.5 Trade receivables 106.3 122.0 -12.9 Other receivables and assets 30.8 54.1 -43.1 Cash and cash equival
Slide 25: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 30 Sep 31 Dec Change € million 2015 2014 (%) Equity 500.9 511.0 -2.0 Provisions for pensions and other post-retirement benefits 173.7 187.1 -7.2 Other provisions 54.6 58.4 -6.5 Financial liabilities 62.3 73.3 -15.0 Other liabilities 3.3 3.9 -15.4 Non-current lia
Slide 26: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1-Q3 2015 Q1-Q3 2014 EBIT 10.6 8.9 Cash flow from operating activities (total) 43.6 86.9 Capital expenditure on intangible assets, property, plant and equipment and investments -50.9 -47.4 Proceeds from the sale of non-current assets 0.9 5.1 Cash flow from
Slide 27: Overview of segments, Q1-Q3 2015
Overview of segments, Q1-Q3 2015 Q1-Q3 Q1-Q3 Change Q1-Q3 Q1-Q3 Change New orders (€ million) 2015 2014 (%) Unit sales 2015 2014 (%) DEUTZ Compact Engines 724.0 882.5 -18.0 DEUTZ Compact Engines 97,596 146,524 -33.4 DEUTZ Customised Solutions 208.9 194.3 7.5 DEUTZ Customised Solutions 9,640 8,575 12
Slide 28: Overview of segments, Q3 2015
Overview of segments, Q3 2015 Q3 Q3 Change Q3 Q3 Change New orders (€ million) 2015 2014 (%) Unit sales 2015 2014 (%) DEUTZ Compact Engines 194.0 270.4 -28.3 DEUTZ Compact Engines 26,243 53,589 -51.0 DEUTZ Customised Solutions 68.2 59.6 14.4 DEUTZ Customised Solutions 2,873 2,431 18.2 Total for oper
Slide 29: Employees
Employees 30 Sep 30 Sep Change 2015 2014 (%) Cologne 2,298 2,432 -5.5 Ulm 405 389 4.1 Other German operations 234 292 -19.9 Germany 2,937 3,113 -5.7 Foreign operations 818 863 -5.2 DEUTZ Group 3,755 3,976 -5.6 Q1-Q3 2015 results 5 November 2015 29
Slide 30: Financial calendar & contact details
Financial calendar & contact details Annual Report 2015 17 March 2016 Annual General Meeting 28 April 2016 Interim report 1st quarter 2016 3 May 2016 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 31: 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.