Deutz Ag · XETR:DEZ
Deutz — H1 2019 Earnings Presentation
29 slides from Deutz's earnings presentation, Aug 1, 2019
Slide 1: DEUTZ H1 2019 results
DEUTZ H1 2019 results August 1, 2019
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: Strategy and operational highlights
Agenda Strategy and operational highlights Dr. Frank Hiller Chairman of the Board of Management 3
Slide 4: Highlights of the first half of 2019
Highlights of the first half of 2019 Positive revenue and earnings development ▪ Further increase in revenue (+5.9%), generated across all regions and main application segments. Particularly strong growth in the Americas (+15.8%) and Asia-Pacific (+15.5%) ▪ Further growth in the profitable service b
Slide 5: Sales figures
Sales figures New orders Unit sales Revenue € million Units € million -13.1% -3.4% +5.9% 1,096.5 105,201 101,591 953.3 877.6 929.8 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 ▪ New orders below exceptionally robust H1 2018, however, still on high level. H1 2018 influenced positively by a change
Slide 6: Revenue by region
Revenue by region1) H1 2019 (H1 2018) Africa and Middle East 2% Europe (excl. Germany) 41% €23.9 million €380.4 million +11.7% +1.8% Asia-Pacific 17% €929.8 million (€877.6 million) €155.5 million +15.5% Americas 23% Germany 17% €213.6 million €158.4 million +15.8% -3.3% Strong growth in the America
Slide 7: Revenue by application segment
Revenue by application segment1) H1 2019 (H1 2018) Miscellaneous 7% Construction Equipment 30% €63.7 million €275.0 million +19.5% +1.5% Stationary Equipment 8% €929.8 million Material Handling 21% €78.9 million (€877.6 million) €193.9 million -0.9% +8.8% Agricultural Machinery 15% Service 19% €141.
Slide 8: Agenda: Key financials in detail
Agenda Key financials in detail Dr. Andreas Strecker Chief Financial Officer 8
Slide 9: Operating profit and net income
Operating profit and net income H1 2018 H1 2019 € million € million 85.8 38,6 73.7 40,3 9,3 56,5 1,2 10 47.2 45,3 33.4 1.0 7,1 25.3 EBITDA EBITDA Depreciation D&A EBIT EBIT EBIT Net interest NetexpensesIncome taxes Income NetNet income EBITDA EBITDA Depreciation D&A EBIT EBIT nach Sondereffektemn EB
Slide 10: EBIT
EBIT EBIT and EBIT margin EBIT and EBIT margin ▪ Significant increase in EBIT and EBIT margin year-on- € million year, even before exceptional items before exceptional items € million ▪ Excluding non-recurring effects (deconsolidation of Argentinian joint venture, recognition of a provision at +69.2
Slide 11: DEUTZ Compact Engines (DCE)
DEUTZ Compact Engines (DCE) € million H1 2019 H1 2018 YoY € million Q2 2019 Q2 2018 YoY change change (%) (%) New orders 756.2 930.4 -18.7 New orders 346.9 437.5 -20.7 Unit sales (units) 81,924 94,463 -13.3 Unit sales (units) 42,954 49,900 -13.9 Revenue 729.8 737.7 -1.1 Revenue 373.6 385.7 -3.1 EBIT
Slide 12: DEUTZ Customised Solutions (DCS)
DEUTZ Customised Solutions (DCS) € million H1 2019 H1 2018 YoY € million Q2 2019 Q2 2018 QoQ change change (%) (%) New orders 180.5 151.4 +19.2 New orders 83.6 74.4 +11.9 Unit sales (units) 13,509 4,393 +207.5 Unit sales (units) 6,415 2,631 +143.8 Revenue 185.0 125.8 +47.1 Revenue 93.8 68.1 +37.7 EB
Slide 13: R&D spending and capital expenditure
R&D spending and capital expenditure R&D expenditure Capital expenditure (excl. R&D) € million € million 4.8% 4.3% 44.7 42.2 37.7 24.2 H1 2018 H1 2019 H1 2018 H1 2019 R&D ratio1) ▪ R&D expenditure and capital expenditure increase as expected due to new engine projects and the implementation of the E
Slide 14: Working capital and cash flow from operating activities
Working capital and cash flow from operating activities Working capital Cash flow from operating activities € million € million 18.4% 18.2% 336.7 294.9 23.2 0.9 Jun. 30, 2018 Jun. 30, 2019 H1 2018 H1 2019 Working capital ratio ▪ Increase in working capital due to higher business volume and higher in
Slide 15: Free cash flow and net financial position
Free cash flow and net financial position Free cash flow1) Net financial position € million € million 68.0 14.5 -17.8 -19.6 2018 Q2 2019 (LTM) Jun. 30, 2018 Jun. 30, 2019 ▪ Lower net financial position due to increase in capital expenditure and introduction of IFRS 16 15 1) Free cash flow: cash flow
Slide 16: Equity ratio and funding
Equity ratio and funding Equity ratio Funding € million € million 1,249.3 1.295,9 49.6% 49.7% 619.1 643,7 160 20 12 Dec. 31, 2018 Jun. 30, 2019 up to 1 year 1 to 5 years Total assets Equity Equity ratio Repayment profile Term of credit lines ▪ Stable financial position - equity ratio of 49.7% ▪ Medi
Slide 17: Agenda: Outlook
Agenda Outlook Dr. Frank Hiller Chairman of the Board of Management 17
Slide 18: Group guidance for 2019
Group guidance for 2019 € million 2018 Forecast for 2019 Revenue 1,778.8 > 1,800 EBIT margin (before exceptional items) 4.6% ≥ 5.0% R&D expenditure1) 85.0 85–90 Capex (excl. R&D)1) 59.1 85–952) Group guidance for 2019 confirmed 18 1) Net of reimbursements. 2) Excluding capital investment in connecti
Slide 19: Annex
DEUTZ Annex
Slide 20: 2019 forecast for key end customer markets
2019 forecast for key end customer markets Unit sales (units) Europe North America China Construction equipment 0% to +5% 0% to +5% 0% to +5% Material handling 0% to +5% 0% to +5% +5% to +10% Agricultural machinery 0% to +5% 0% to +5% -5% to -10% 20 Source: DEUTZ market estimates.
Slide 21: Summary of key financials
Summary of key financials € million H1 2019 H1 2018 ∆ YoY change (%) EBITDA 95.1 73.7 +29.0 EBITDA margin (%) 10.2 8.4 +180bps EBIT 56.5 33.4 +69.2 EBIT margin (%) 6.1 3.8 +230bps Equity ratio (%) 49.7 48.3 Free cash flow2) -46.2 -12.1 >+100 Net financial position -17.8 68.0 >-100 Working capital 33
Slide 22: Overview of segments
Overview of segments New orders H1 2019 H1 2018 ∆ YoY Revenue H1 2019 H1 2018 ∆ YoY € million change € million change (%) (%) DEUTZ Compact Engines 756.2 930.4 -18.7 DEUTZ Compact Engines 729.8 737.7 -1.1 DEUTZ Customised Solutions 180.5 151.4 +19.2 DEUTZ Customised Solutions 185.0 125.8 +47.1 Other
Slide 23: Income statement
Income statement € million H1 2019 H1 2018 ∆ YoY change (%) Revenue 929.8 877.6 +5.9 Cost of sales -757.0 -714.5 +5.9 Research & development costs -44.0 -47.8 -7.9 Selling and administrative expenses -78.5 -71.1 +10.4 Other operating income 18.2 13.3 +36.8 Other operating expenses -12.2 -9.7 +25.8 W
Slide 24: Balance sheet: assets
Balance sheet: assets € million Jun. 30, 2019 Dec. 31, 2018 ∆ YoY change (%) Non-current assets (before deferred tax assets) 560.6 506.2 +10.7 Deferred tax assets 79.4 75.9 +4.6 Inventories 387.9 333.5 +16.3 Trade receivables 171.1 157.3 +8.8 Other receivables and assets 39.9 43.2 -7.6 Cash and cash
Slide 25: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities € million Jun. 30, 2019 Dec. 31, 2018 ∆ YoY change (%) Equity 643.7 619.1 +4.0 Provisions for pensions and other post-retirement benefits 157.3 152.8 +2.9 Deferred tax liabilities 0.3 0.5 -40.0 Other provisions 37.3 36.2 +3.0 Financial debt 41.0 19.3 >+100 Other
Slide 26: Cash flow statement (condensed)
Cash flow statement (condensed) € million H1 2019 H1 2018 EBIT 56.5 33.4 Cash flow from operating activities (total) 0.9 23.2 Capital expenditure on intangible assets, property, plant and equipment and investments -49.7 -34.1 Proceeds from the sale of non-current assets 4.1 0.0 Cash flow from invest
Slide 27: Financial calendar and contact details
Financial calendar and contact details Financial calendar Q1–Q3 2019 results November 7, 2019 Results for 2019 March 12, 2020 2020 Annual General Meeting May 14, 2020 Contact Leslie Isabelle Iltgen SVP Communications & Investor Relations +49 (0)221 822 3600 leslie.iltgen@deutz.com 27
Slide 28: Questions & answers
DEUTZ Questions & answers
Slide 29: Thank you for your attention!
Thank you for your attention!