Deutz Ag · XETR:DEZ
Deutz — Shareholder Meeting (April 2009)
25 slides from Deutz's shareholder meeting presentation, Apr 30, 2009
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING Cologne, 30 April 2009
Slide 2: Review of 2008
Review of 2008 2008 ended with the biggest financial and economic crisis seen for decades - Business performed well in the first half of 2008; order situation showed no signs of a downturn - Demand started to fall off at an increasing rate from mid-year - DEUTZ's key sectoral markets (construction,
Slide 3: Overview of key performance indicators for 2008
Overview of key performance indicators for 2008 € million 2008 2007 Change(%) New orders 1,363.5 1,584.5 -13.9 Unit sales (quantity) 252,359 285,861 -11.7 Revenue 1,495.0 1,524.2 -1.9 Number of employees (31 December) 4,701 4,617 1.8 EBIT before one-off items*) 31.8 95.5 -66.7 EBIT margin before one
Slide 4: Share price performance in 2008
Share price performance in 2008: DEUTZ shares were not immune to the global economic crisis and stock market turmoil %, indexed 120 100 80 60 40 20 0 January 2008 December 2008 DEUTZ MDAX SDAX Prime Industrial Annual General Meeting of DEUTZ AG Cologne, 30 April 2009 4
Slide 5: Share price performance in 2009
Share price performance in 2009: strong rally starting in mid- March %, indexed 130 120 110 100 90 80 70 60 Januar Februar März April DEUTZ SDAX Prime Industrial Annual General Meeting of DEUTZ AG Cologne, 30 April 2009 5
Slide 6: Unit sales on a five-year comparison
Unit sales on a five-year comparison Units +18% p.a. on -12% average 285,861 252,359 236,679 195,082*) 172,684*) 151,242 148,687 134,619 103,672 2004 2005 2006 2007 2008 H1 H2 H1 H2 After several successive years of growth, the global financial and economic crisis prevented another record year A goo
Slide 7: Revenue by region
Revenue by region 2008 (% change on 2007) Africa & Middle East 6% €86.4 million (-2.7%) Germany 24% Asia-Pacific 8% €364.7 million (+8.7%) €118.6 million (-4.2%) €1,495.0 million (€1,524.2 million) Americas 12% €180.7 million (-12.8%) Rest of Europe 50% €744.6 million (-3.2%) Annual General Meeting
Slide 8: New orders
New orders € million Comparison of 2007 vs. 2008 Quarterly trend in 2008 -13.9% 1,584.5 1,363.5 380.6 331.0 1,203.9 433.3 1,032.5 395.8 321.8 212.6 2007 2008 Q1 Q2 Q3 Q4 Fairly modest decrease over 2008 as a whole 1st half of year still at high level of 2007 Particularly affected: Mobile Machinery D
Slide 9: EBIT before one-off items
EBIT before one-off items € million -66.7% 95.5 5.5 44.7 24.5 31.8 45.3 13.4 -12.1 47.1 11.2 11.9 -13.6 -1.7 -0.1 -22.6 -1.4 2007 2008 Q4 2007 Q4 2008 EBIT margin 6.3% 2.1% 5.8% -3.8% Compact Engines DEUTZ Customised Solutions Other Annual General Meeting of DEUTZ AG Cologne, 30 April 2009 9
Slide 10: Overview of segments: Compact Engines
Overview of segments: Compact Engines € million 2008 2007 Change (%) New orders 1,032.5 1,203.9 -14.2 Unit sales (quantity) 219,681 248,971 -11.8 Revenue 1,143.2 1,186.0 -3.6 EBIT (before one-off items) -13.6 45.3 -- Sharp fall in demand for engines of less than four litres from mid-2008; four to ei
Slide 11: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions € million 2008 2007 Change (%) New orders 331.0 380.6 -13.0 Unit sales (quantity) 32,678 36,890 -11.4 Revenue 351.8 338.2 4.0 EBIT (before one-off items) 47.1 44.7 5.4 The volume of new orders of new engines (mainly construction equipment and undergro
Slide 12: R&D expenditure increased in preparation for forthcoming emission standards
R&D expenditure increased in preparation for forthcoming exhaust-gas emission standards € million R&D expenditure +62% 90.3 11.6 78.7 55.8 8.5 47.3 2007 2008 R&D ratio*) 3.7% 6.0% *) R&D spending as a percentage of revenue Compact Engines DEUTZ Customised Solutions Annual General Meeting of DEUTZ AG
Slide 13: Liabilities mainly non-current
Liabilities mainly non-current Total financial liabilities (31 December 2008): €219.7 million €157.4 million of which: US bond (US private placement) €56.7 million €5.6 million Residual maturity up to 1 > 1 to 5 >5 year years years Over 70 per cent of financial liabilities have residual maturities o
Slide 14: Key balance sheet figures: net financial position and equity ratio
Key balance sheet figures: net financial position and equity ratio Net financial position (€ million) Equity ratio (%) 89.7 42.4 40.4 -12.2 2007 2008 2007 2008 *) Cash and cash equivalents minus current and non-current interest-bearing financial liabilities Annual General Meeting of DEUTZ AG Cologne
Slide 15: The economy has not yet bottomed out
The economy has not yet bottomed out First half of 2008 continued the strong trend from 2007; downturn started in third quarter of 2008 Demand fell sharply in fourth quarter of 2008 (starting with bankruptcy of Lehman Brothers!) Downturn especially severe in compact engines (construction equipment)
Slide 16: DEUTZ's MOVE action programme
DEUTZ's MOVE action programme MOVE Programme to secure the Company's profitability and future Short-term measures to secure profitability focus on 2009 Reduce overheads (operating and staff costs) Lower the cost of materials Bring headcount into line with revised sales forecasts Improve efficiency o
Slide 17: See future trends as an opportunity
See future trends as an opportunity Growing world population More efficient agriculture Advancing globalisation Increasing mobility Growing urbanisation Action to prevent climate change Annual General Meeting of DEUTZ AG Cologne, 30 April 2009 17
Slide 18: Challenges facing R&D in the 21st century
Challenges facing R&D in the 21st century: stricter limits imposed and carbon emissions reduced Particulates [g/kWh] 10 0.9 1999 to 2014: Particulates and nitrogen oxides (NOx) must all be cut by around 96 per cent 0.8 Engine manufacturers are responsible for complying with the imposed limits 0.7 US
Slide 19: TIER 4 engine: system for exhaust aftertreatment
TIER 4 engine: system for exhaust aftertreatment SCR/CAT DEUTZ Burner Dosing unit Particulate filter AdBlue® Tank Pump module Annual General Meeting of DEUTZ AG Cologne, 30 April 2009 19
Slide 20: Potential growth from future exhaust technologies
Potential growth from future exhaust technologies Revenue (€ million) Service revenue from 2014 2010 2011 2012 2013 Potential revenue from Potential revenue from exhaust Potential revenue from exhaust aftertreatment aftertreatment collaborations systems engineering collaborations Annual General Meet
Slide 21: Thorough realignment of costs and organisational structures Sound balance sheet; financing not
Thorough realignment of costs and organisational structures Sound balance sheet; financing not reliant on banks Expansion of technological base Leading global brand Highly skilled workforce “All things considered, DEUTZ is ideally placed to return swiftly to profitability and growth once the global
Slide 22: The engine company.
aur —, \ynme The engine company.
Slide 23: Financial calendar for 2009
Financial calendar for 2009 Annual General Meeting Cologne 30 April 2009 Interim report on first quarter of 2009 7 May 2009 Conference call with analysts and investors Interim report on first half of 2009 12 August 2009 Conference call with analysts and investors Interim report on first three quarte
Slide 24: Contact
Contact DEUTZ AG Gerhard Zaiß Sandra Siegele Corporate Communications Investor Relations Ottostrasse 1 Ottostrasse 1 51149 Cologne (Porz-Eil) 51149 Cologne (Porz-Eil) Tel.: +49 (0)221 822 2455 +49 (0)221 822 2492 Fax: +49 (0)221 822 15 2455 +49 (0)221 822 15 2492 Email: [email protected] siegele.s@d
Slide 25: 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.