Deutz Ag · XETR:DEZ

Deutz — Q1 2007 Earnings Presentation

17 slides from Deutz's earnings presentation, May 10, 2007

  1. Slide 1: Conference Call Q1 2007

    C O N F E R E N C E C A L L Q1 2007 10 May 2007

  2. Slide 2: Overview Q1 2007

    Overview Q1 2007 „ A good start to 2007 ¦ New orders up 30% ¦ Unit sales up 23% ¦ Revenue boosted by commercial vehicle production, rising by 26% ¦ Operating profit €13 million „ Net income up almost 50% to €5.8 million „ Increased capital expenditure to expand capacity „ Number of employees up appr

  3. Slide 3: Key Performance Indicators Q1 2007

    Key Performance Indicators Q1 2007 Change € million Q1 2007 Q1 2006 (%) Revenue 390.9 309.5 26.3 EBITDA 31.2 28.6 9.1 Operating profit (EBIT before one-off items) 13.1 13.0 0.8 EBIT margin before one-off items (%) 3.4 4.2 - EBIT 13.1 13.0 0.8 Net income 5.8 3.9 48.7 Earnings per share, basic (€) 0.0

  4. Slide 4: New orders and unit sales grow by significantly more than 20%

    New orders and unit sales grow by significantly more than 20% New orders (€ million) Unit sales +29.9% +22.6% 515.7 63.770 78.0 98 6,543 51,996 397.1 91 57,129 97.2 83.4 8,701 340.5 43,204 87.7 226.0 Q1 2006 Q1 2007 Q1 2006 Q1 2007 Compact Engines DEUTZ Customised Solutions DEUTZ Power Systems 4

  5. Slide 5: Revenue boosted by strong growth in unit sales of commercial vehicle engines

    Revenue boosted by strong growth in unit sales of commercial vehicle engines Revenue (€ million) Operating profit (€ million) +26.3% +0.8% 390.9 13.0 13.1 55.5 309.5 66.2 54.1 269.2 70.9 184.5 Q1 2006 Q1 2007 Q1 2006 Q1 2007 -2.2 -1.3 5.2 5.2 8.5 9.0 Compact Engines DEUTZ Customised Solutions DEUTZ

  6. Slide 6: Revenue by regions

    Revenue by regions Q1 2007 (Q1 2006) Middle East 2% (4%) Germany Asia-Pacific 21% (25%) 7% (8%) Americas 13% (17%) 390.9 (309.5) Africa € million 2% (3%) Rest of Europe 55% (43%) 6

  7. Slide 7: Q1 2007: Segments

    Q1 2007: Segments Unit sales Q1 Q1 Change New orders (€ million) Q1 Q1 Change 2007 2006 (%) 2007 2006 (%) Compact Engines 57,129 43,204 32.2 Compact Engines 340.5 226.0 50.7 DEUTZ Customised Solutions 6,543 8,701 -24.8 DEUTZ Customised Solutions 97.2 87.7 10.8 DEUTZ Power Systems 98 91 7.7 DEUTZ Pow

  8. Slide 8: Compact Engines: highlights

    Compact Engines: highlights Revenue by applications „ New orders up 51% Q1 2007 (Q1 2006) Service „ Revenue up 46% 8% (10%) Mobile Machinery „ Unit sales of engines up 32% 45% (51%) year-on-year Other 3% (2%) „ Unit sales of 4-litre to 8-litre 269.2 (184.5) engines up 50%, due in large Automotive pa

  9. Slide 9: DEUTZ Customised Solutions: highlights

    DEUTZ Customised Solutions: highlights Revenue by applications „ Production of air-cooled engines Q1 2007 (Q1 2006) in Ulm started on schedule „ New orders up 11% Mobile Machinery Service 17% (16%) „ Service revenue up 8% 40% (35%) 66.2 (70.9) Stationary € million Equipment 21% (27%) Agricultural Ot

  10. Slide 10: DEUTZ Power Systems: highlights

    DEUTZ Power Systems: highlights Revenue by applications „ Usual seasonal peak at start of Q1 2007 (Q1 2006) year „ Gas engine revenue up more Stationary Equipment than 24% Service 49% (44%) 51% (52%) „ Revenue boosted by applications for commercial greenhouses in 55.5 (54.1) Benelux countries and bi

  11. Slide 11: Substantial increase in capital expenditure for capacity expansion, R&D in line with planning

    Substantial increase in capital expenditure for capacity expansion, R&D expenditure in line with planning Capital expenditure* (€ million) R&D (€ million) +96.9% -1.3% 19.1 15.7 15.5 0.8 2.8 3.1 3.3 15.5 2.2 9.7 2.1 0.5 10.4 10.1 0.4 8.8 Q1 2006 Q1 2007 Q1 2006 Q1 2007 * excl. capitalised developmen

  12. Slide 12: Key balance sheet statistics

    Key balance sheet statistics € million 31 Mar 31 Dec Change 2007 2006 (%) Total assets 1,177.1 1,162.9 1.2 Equity 364.9 358.5 1.8 Equity ratio (%) 31.0 30.8 - Cash flow from operating activities -10.7 110.2 - Net financial debt 49.3 10.8 - Working capital 293.8 235.1 25.0 12

  13. Slide 13: Working capital up 5% on previous quarter, with a sharp increase in business volume

    Working capital up 5% on previous quarter, with a sharp increase in business volume Net financial debt (€ million) Working capital (€ million) 293.8 279.9 51.3 49.3 235.1 10.8 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar 2006 2006 2007 2006 2006 2007 13

  14. Slide 14: Outlook for 2007

    Outlook for 2007 „ Unit sales target: 260,000 engines (excl. Chinese joint venture) „ Revenue growth of between 6% and 10% „ Further growth in operating profit, EBIT margin of around 7% „ Expenses relating to joint venture in China will impact net income in second half of the year „ Net income to be

  15. Slide 15: Financial calendar for 2007

    Financial calendar for 2007 „ Q1 2007 interim report Conference call with analysts and investors 10 May 2007 „ Annual General Meeting Cologne 24 May 2007 „ H1 2007 interim report Press conference Cologne 1 August 2007 Conference call with analysts and investors „ Q1-Q3 2007 interim report 8 November

  16. Slide 16: Contact

    Contact DEUTZ AG Investor & Public Relations Ottostraße 1 51149 Cologne (Porz-Eil) T +49 221 822-2492 F +49 221 822-2498 www.deutz.com 16

  17. Slide 17: Disclaimer

    Disclaimer 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. Such discrepancies may be caused by changes in political, economic or business conditions, a decrea

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