Deutz Ag · XETR:DEZ
Deutz — Q1 2012 Earnings Presentation
29 slides from Deutz's earnings presentation, May 10, 2012
Slide 1: Conference Call Q1 2012
Conference Call Q1 2012 10 May 2012
Slide 2: Agenda
Agenda Review Q1 2012 Dr Helmut Leube, Chairman of the Board of Management Key financials Q1 2012 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex Conference Call Q1 2012 10 May 2012 2
Slide 3: Highlights of Q1 2012
Highlights of Q1 2012 Robust sales figures - Revenue up by 0.3% yoy to €336.9 million - Higher value of new Tier 4 interim compliant engines compensated lower unit sales - Order intake of €390.0 million just below the level of Q1 2011 (€408.5 million) and 26% higher than Q4 2011 Operating profit
Slide 4: Sales figures, Q1 2012
Sales figures, Q1 2012 Order Intake Unit Sales Revenue € million Units € million -4.5% -4.0% 0.3% 408.5 390.0 48,416 46,461 83.4 336.0 336.9 93.5 5,744 4,882 76.0 73.9 325.1 296.5 42,672 41,579 260.0 263.0 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Order intake rose 26.0% vs. Q4 2011 New Ti
Slide 5: Revenue split
Revenue split Revenue Split by Application, Q1 2012 Revenue Split by Region, Q1 2012(1) (Q1 2011) (Q1 2011) Mobile Other 7% Machinery 36% Africa/Middle East 5% Europe (excl. Germany) 54% €22.9 million €121.5 million €18.3 million €183.0 million (€16.5 million) (€114.4 million) (€21.6 million) (€186.
Slide 6: Overview of segments: Compact Engines
Overview of segments: Compact Engines Q1 Q1 Change € million 2012 2011 (%) New orders 296.5 325.1 -8.8 Unit sales 41,579 42,672 -2.6 Revenue 263.0 260.0 1.2 EBIT -1.0 6.7 >-100.0 Order intake 25.2% higher than Q4 2011 Revenue increased by 1.2%; higher value of new engines compensated lower unit
Slide 7: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Q1 Q1 Change € million 2012 2011 (%) New orders 93.5 83.4 12.1 Unit sales 4,882 5,744 -15.0 Revenue 73.9 76.0 -2.8 EBIT 12.2 11.9 2.5 Order intake well ahead of Q1 2011 and Q4 2011 (€72.6 million) Unit sales declined by 15.0% yoy due to market con
Slide 8: Agenda
Agenda Review Q1 2012 Dr Helmut Leube, Chairman of the Board of Management Key financials Q1 2012 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex Conference Call Q1 2012 10 May 2012 8
Slide 9: EBIT
EBIT € million 18.2 11.9 10.3 DEUTZ Customised Solutions 12.2 Compact Engines 6.7 Other -1.0 -0.4 -0.9 Q1 2011 Q1 2012 EBIT margin 5.4% 3.1% EBIT margin declined Improving EBIT month by month in Q1 Profitability in Q1 is not an indication for FY 2012 Improvement expected from efficiency gain
Slide 10: Net income
Net income Q1 2011 Q1 2012 € million 18.2 -3.3 -0.3 -0.9 13.7 10.3 -3.0 -0.3 -0.7 6.3 EBIT Net interest Other Income Net EBIT Net interest Other Income Net expenses taxes taxes income expenses taxes taxes income Net interest expense lower due to strict cash management and higher equity Low effec
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million Gross R&D 25.2 25.9 expenditure 4.2 Reimbursements 5.5 14.4 Net R&D expenditure 10.0 19.7 21.7 Q1 2011 Q1 2012 Q1 2011 Q1 2012 R&D ratio(1) 7.5% 7.7% R&D expenditure influenced by launch of new products and Capex
Slide 12: Net financial position and working capital
Net financial position and working capital Net financial position Working capital € million 197.1 168.9 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Working 13.1% 12.9% capital ratio -110.8 -124.5 Cash credit line of €240 million provides financial flexibility Ongoing tight working capital management Cash
Slide 13: Summing up
Summing up Revenue increased by €0.9 million (+0.3%) yoy Positive trend stabilizing due to higher value of engines and implementation of Asian projects High demand from construction and agriculture in Asia in the next years EBIT declined by €7.9 million yoy; profitability is expected to impr
Slide 14: Agenda
Agenda Review Q1 2012 Dr Helmut Leube, Chairman of the Board of Management Key financials Q1 2012 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex Conference Call Q1 2012 10 May 2012 14
Slide 15: Financial outlook
Financial outlook Outlook for 2012 Revenue Approx. €1.5 billion EBIT margin Approx. 6.0 % Research and Development (R&D) Decline by about 25 % vs. 2011 Capex (excl. R&D) Approx. €60 million Free cash flow Positive territory Working capital ratio Sustainable below 13 % Equity ratio Above 40 % Outlook
Slide 16: DEUTZ Engine (Shandong) Co., Ltd.
DEUTZ Engine (Shangdong) Co., Ltd. DEUTZ Start of Partner Product range Status participation operations Engines < 4 Founding documents DEUTZ Engine Shandong litre for mobile signed January 2012 Changlin (Shandong) Machinery 70 % machinery and 2013 agricultural Break even expected in Co., Ltd. Gr
Slide 17: Long-term cooperation with Volvo
Long-term cooperation with Volvo DEUTZ Start of Partner Product range Status participation operations Memorandum of Medium-duty understanding Production JV engines for [end of 2013 / AB Volvo >50 % Any implementation in China non-road early 2014] applications requires agreement of both partners
Slide 18: Agenda
Agenda Review Q1 2012 Dr Helmut Leube, Chairman of the Board of Management Key financials Q1 2012 Dr Margarete Haase, Chief Financial Officer Outlook Dr Helmut Leube, Chairman of the Board of Management Annex Conference Call Q1 2012 10 May 2012 18
Slide 19: Summary of key financials (I)
Summary of key financials (I) € million Q1 2012 Q1 2011 Change (%) Revenue 336.9 336.0 0.3 EBITDA 27.7 34.3 -19.2 EBIT 10.3 18.2 -43.4 EBIT margin (%) 3.1 5.4 -- Net income 6.3 13.7 -54.0 Basic earnings per share (€) 0.05 0.11 -54.0 Number of employees (31 March) 4,104 4,081 0.6 Conference Call Q1 2
Slide 20: Summary of key financials (II)
Summary of key financials (II) € million Q1 2012 Q1 2011 Change (%) Total assets 1,102.5 1,048.4 5.2 Equity 458.6 384.5 19.3 Equity ratio (%) 41.6 36.7 -- Cash flow from operating activities -16.5 -9.6 71.9 Free cash flow -55.3 -37.5 47.5 Net financial position -124.5 -110.8 12.4 Working capital (as
Slide 21: Income statement
Income statement € million Q1 2012 Q1 2011 Change (%) Revenue 336.9 336.0 0.3 Changes in inventories and other own work capitalised 23.6 31.7 -25.6 Other operating income 8.6 10.3 -16.5 Cost of materials -233.2 -233.5 -0.1 Staff costs -70.9 -70.7 0.3 Depreciation and amortisation -17.4 -16.1 8.1 Imp
Slide 22: Balance sheet: assets
Balance sheet: assets 31 Mar 31 Dec Change Assets (€ million) 2012 2011 (%) Non-current assets (excluding deferred tax assets) 630.8 623.1 1.2 Deferred tax assets 17.0 17.2 -1.2 Inventories 217.1 187.6 15.7 Trade receivables 161.0 163.6 -1.6 Other receivables and assets 60.4 55.5 8.8 Cash and cash e
Slide 23: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Mar 31 Dec Change Equity and liabilities (€ million) 2012 2011 (%) Equity 458.6 453.5 1.1 Provisions for pensions and other post-retirement benefits 146.5 148.5 -1.3 Deferred tax provisions 3.1 2.8 10.7 Other provisions 30.0 29.3 2.4 Financial liabilities 138
Slide 24: Cash flow statement (condensed)
Cash flow statement (condensed) € million Q1 2012 Q1 2011 EBIT 10.3 18.2 Cash flow from operating activities (total) -16.5 -9.6 Capital expenditure on intangible assets, property, plant and equipment and investments -36.1 -25.9 Proceeds from the sale of non-current assets 0.1 0.3 Cash flow from inve
Slide 25: Overview of segments, Q1 2012
Overview of segments, Q1 2012 Q1 Q1 Change Q1 Q1 Change New orders (€ million) 2012 2011 (%) Unit sales 2012 2011 (%) Compact Engines 296.5 325.1 -8.8 Compact Engines 41,579 42,672 -2.6 DEUTZ Customised Solutions 93.5 83.4 12.1 DEUTZ Customised Solutions 4,882 5,744 -15.0 Total for operating activit
Slide 26: Employees
Employees 31 Mar 31 Mar Change 2012 2011 (%) Cologne 2,526 2,476 2.0 Ulm 428 450 -4.9 Other German operations 292 278 5.0 Germany 3,246 3,204 1.3 Foreign operations 858 877 -2.2 DEUTZ Group 4,104 4,081 0.6 Conference Call Q1 2012 10 May 2012 26
Slide 27: Financial calendar
Financial calendar Interim report on first half of 2012 9 August 2012 Conference call with analysts and investors Interim report on first three quarters of 2012 8 November 2012 Conference call with analysts and investors Annual Results Press Conference Cologne 19 March 2013 Publication of annu
Slide 28: DEUTZ AG contact details
DEUTZ AG contact details Christian Krupp Finance & Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Germany Tel.: +49 (0)221 822 5400 Fax: +49 (0)221 822 15 5400 Email: [email protected] www.deutz.com Conference Call Q1 2012 10 May 2012 28
Slide 29: 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.