Deutz Ag · XETR:DEZ

Deutz — FY2021 Earnings Presentation

25 slides from Deutz's earnings presentation, Mar 14, 2022

  1. Slide 1: Results for FY 2021

    DEUTZ – Results for FY 2021 – March 14, 2022

  2. 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.

  3. Slide 3: Agenda: Overview & highlights of 2021

    Agenda Agenda Overview & highlights of 2021 Dr. Sebastian C. Schulte | CEO & interim CFO 3

  4. Slide 4: Key operational and strategic developments

    Key operational and strategic developments Order intake Unit sales Revenue EBIT before exceptional items +52% to DEUTZ engines +33% to Sales +25% to +€111.9 million to €2,013 million 160,882 units €1,617 million €37.2 million Book-to-bill ratio of 1.24 EBIT margin of 2.3% (+8.1pp) Proposed Product S

  5. Slide 5: Positive and negative input factors

    Positiv and negativ Input factors Broad economic Cost measures Service target Customer base recovery show results achieved broadend All relevant end markets Break-even lowered to Sales +16% to New long-term contracts with double digit sales 130.000 units €403 million with SDF, AGCO and growth ASKO S

  6. Slide 6: Progress with hydrogen strategy

    Progress with hydrogen strategy Pilot project for TCG 7.8 H2 with regional utility company  Stationary equipment for power generation planned with RheinEnergie as the first pilot application for the TCG 7.8 H2  Demonstration model in operation on a trial basis since end of December 2021  Full pro

  7. Slide 7: Expansion of the profitable service business as planned

    Expansion of the profitable service business as planned Revenue Order intake Order backlog € million € million € million +15.7% +16.9% +46.3% 403.1 412.1 Our service target: 348.3 approx. €400 352.4 35.7 24.4 2020 2021 2020 2021 2020 2021 million revenue in 2021  5-year CAGR of 7.0%  Substantial g

  8. Slide 8: New segment structure from January 2022

    New segment structure from January 2022 GREEN CLASSIC  Electric drives, Torqeedo and Futavis, hydrogen  Diesel, gas (LPG and CNG), and bi-fuel engines engine, Blue World Technologies  Related service business  Related service business 8 DEUTZ I Annual results press conference, March 14, 2022

  9. Slide 9: New segment structure – pro forma view of 2021

    New segment structure – pro forma view of 2021 Order intake Unit sales Revenue EBIT1 / EBIT margin1 € million Units € million € million 160,882 1,946 1,563 63.3 40,403 +4.0% 65 54 Green Classic Green Classic Green Classic Green Classic -48.2% -26.1  GREEN still with considerable start-up investment

  10. Slide 10: Sustainability strategy – highlights of 2021

    Sustainability strategy – highlights of 2021 -55% 1 100% 99% 75% 2 CO2 emissions from Green electricity at Proportion of workforce to have Proportion of production sites production sites DEUTZ AG sites completed compliance training with ISO-45001 certification -22% 1 3.3% 55% Waste for disposal Shar

  11. Slide 11: Reflected in improved ESG ratings

    Reflected in improved ESG ratings C+ A 62 (Jan. 2022) (Jun. 2021) (May 2021) 80 60 40 39 (Feb. 2021) 20 0 12/19 12/20 05/21 01/22 27.9 (Jul. 2021) Sustainability efforts paying off 11 DEUTZ I Annual results press conference, March 14, 2022

  12. Slide 12: Strategic Roadmap under development

    Strategic Roadmap under development Beyond 2030 2026 – 2029 2022 – 2025 Project H1 2022: ‚Strategic Agenda‘ Strategic Program 2022-2025 2025 Review Strategic Program Strategy Review Adaptation Outlook & definition Strategic Conception of & Management Process & of next horizon level Analysis Strategy

  13. Slide 13: Agenda: 2021 in numbers

    Agenda Agenda 2021 in numbers Christian Ludwig | SVP Communications & IR 13

  14. Slide 14: Results for 2021

    Results for 2021 Order intake Unit sales Revenue € million Units € million +52.2% +33.4% +24.8% 2,012.6 201,283 1,617.3 40,401 1,322.5 150,928 1,295.6 29,894 160,882 121,034 < Thereof Torqeedo 2020 2021 2020 2021 < 2020 2021  Continued market recovery resulting in significant increase in new orders

  15. Slide 15: Revenue for 2021 in detail

    Revenue for 2021 in detail Revenue breakdown by region Revenue breakdown by application segment 2021 (2020) 2021 (2020) Africa and Middle East Europe (excl. Germany) Miscellaneous Construction Equipment 4% (4%) 40% (41%) 7% (8%) 30% (29%) €57 million €649 million €113 million €491 million +4.0% +21.

  16. Slide 16: Continued improvement in earnings

    Continued improvement in earnings Operating profit (€ million)  Operating profit improved to €37.2 million in 20211 EBIT margin before exceptional items (2020: operating loss of €74.7 million) due to: − increased volume of business, bringing economies of scale +€15.4 million / +3.9pp qoq − cost sav

  17. Slide 17: 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 +1.1% -28.4% +7.7% 6.3% 5.1% 91.7 18.1% 81.4 82.3 15.7% 32.4 65.7 253.2 17.7 235.0 2020 2021 2020 2021 2020 2021 R&D ratio1 Thereof additions as a result of l

  18. Slide 18: Cash flow and net financial position

    Cash flow and net financial position Cash flow from operating activities Free cash flow1 Net debt € million € million € million +€48.4 million +€57.4 million -€4.1 million 21.6 93.3 44.9 -58.0 -61.3 -83.8 -79.7 -35.8 2020 2021 2020 2021 Dec. 31, 2020 Dec. 31, 2021 Thereof lease liabilities  Sharp r

  19. Slide 19: Rock-solid balance sheet – proposed dividend of €0.15

    Rock-solid balance sheet – proposed dividend of €0.15 Equity and equity ratio Net debt/EBITDA Proposed dividend1 € million € 1,290.1 1,180.5 0.15 45.3% 45.6% 535.2 588.4 2.6 0.1 0.6 0 0 Dec. 31, 2020 Dec. 31, 2021 2019 2020 2021 2019 2020 2021 Total assets Equity Equity ratio  Equity ratio remains

  20. Slide 20: Agenda: Guidance

    Agenda Agenda Guidance Dr. Sebastian C. Schulte | CEO & interim CFO 20

  21. Slide 21: Global market developments 2022

    Global market developments 2022 (View February 2022) Material Heavy-Duty- Agriculture Construction Handling Trucks EMEA – Americas – APAC End market view supports positive outlook 21 Source: VDMA „Geschäftsklima und Marktentwicklung“, January 2022, Power Systems Research, January 2022. DEUTZ I Annua

  22. Slide 22: Impact of the war between Russia and Ukraine on DEUTZ

    Impact of the war between Russia and Ukraine on DEUTZ  Revenue of around €20 million per year before the crisis  DEUTZ without own footprint in Ukraine or Belarus  None of DEUTZ's direct suppliers are located in the regions affected by the crisis  All sales activities with Russia, Belarus, Railr

  23. Slide 23: Guidance 2022 under review

    Guidance 2022 under review Guidance 2022 (February 2022) Unit sales 165,000 to 180,000 DEUTZ-engines1 Sales €1.7 to 1.85 billion (Classic: €1.6 to 1.75 billion / Green: €75 to 100 million) EBIT-margin adjusted 3.5 to 5.5% (Classic: 4.5 to 6.5% / Green: –30 to –20%) Free Cashflow Amount in the low to

  24. Slide 24: Any questions?

    Thank you for your attention! Any questions?

  25. Slide 25: Financial calendar and contact details

    Financial calendar and contact details Financial calendar Contact 2022 Annual General Meeting April 28, 2022 Christian Ludwig, CFA (virtual) SVP Communications & IR +49 (0) 221 822-3600 Q1 2022 quarterly statement May 5, 2022 christian.ludwig@deutz.com H1 2022 interim report August 11, 2022 Follow u

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