Deutz Ag · XETR:DEZ
Deutz — Q1 2008 Earnings Presentation
26 slides from Deutz's earnings presentation, Apr 30, 2008
Slide 1: Conference Call Q1 2008
C O N F E R E N C E C A L L Q1 2008 30 April 2008
Slide 2: Agenda
Agenda Highlights Q1 2008 Dr Helmut Leube, Chairman of Management Board Key performance indicators Q1 2008 Helmut Meyer, CFO Outlook for 2008 Dr Helmut Leube, Chairman of Management Board Appendix 2
Slide 3: Successful start to 2008
Successful start to 2008 Unit sales up 14.3 % to 72,786 engines (Q1 2007: 63,672) Revenue up 18.4 % to €397.0 million (Q1 2007: €335.4 million) EBIT margin up 0.7 percentage points to 5.0% (Q1 2007: 4.3 %) Net income up almost 70 % to €13.5 million (Q1 2007: €8.0 million) Research and deve
Slide 4: New orders and orders on hand remain at high level
New orders and orders on hand remain at high level New orders (€ million) Orders on hand (€ million) -1.0 % +8.7 % 437.7 433.3 97.2 88.7 343.4 340.5 344.6 316.0 92.1 88.9 251.3 227.1 Q1 2007 Q1 2008 31-Dec 31-Mar 2007 2008 Compact Engines DEUTZ Customised Solutions 4
Slide 5: Double-digit growth in unit sales and revenue
Double-digit growth in unit sales and revenue Unit sales Revenue (€ million) +14.3 % +18.4 % 397.0 72,786 8,009 335.4 78.9 63,672 64,777 66.2 318.1 6,543 269.2 57,129 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Compact Engines DEUTZ Customised Solutions 5
Slide 6: Revenue by region
Revenue by region Q1 2008 (Q1 2007) € million Q1 Q1 Delta 2008 2007 in % Asia/Pacific Middle East Germany 94.9 67.5 40.6 6 % (6 %) 2 % (2 %) Rest of Europe 206.2 182.2 13.2 Germany Middle East 6.9 6.9 - Americas 24 % (20 %) Asia/Pacific 25.9 21.0 23.3 13 % (15 %) Americas 50.6 50.9 -0.6 397.0 (335.4
Slide 7: Compact Engines segment: highlights
Compact Engines segment: highlights Revenue by application segment Revenue benefits from TCD 2013 4V engine and strong demand in service Q1 2008 (Q1 2007) business Service 8 % (8 %) Mobile Exceptionally strong growth in Machinery Agricultural Machinery revenue of Other 43 % (45 %) 86.5% to €41.4
Slide 8: DEUTZ Customised Solutions segment: highlights
DEUTZ Customised Solutions segment: highlights Revenue by application segment Revenue improves by 19.2% to €78.9 million (Q1 2007: €66.2 million) following Q1 2008 (Q1 2007) relocation of production from Cologne to Mobile UIm Machinery Service business increases by 7.9% to Service 20 % (17 %) €2
Slide 9: Agenda
Agenda Highlights Q1 2008 Dr Helmut Leube, Chairman of Management Board Key performance indicators Q1 2008 Helmut Meyer, CFO Outlook for 2008 Dr Helmut Leube, Chairman of Management Board Appendix 9
Slide 10: Financial highlights Q1 2008
Financial highlights Q1 2008 Substantial year-on-year improvement in EBIT ¦ Group EBIT up almost 37 % to €19.7 million (Q1 2007: €14.4 million) ¦ Compact Engines EBIT up 12.2 % to €10.1 million (Q1 2007: € 9.0 million) despite €3.2 million share of start-up losses in Deutz Dalian ¦ 77 % surge in E
Slide 11: EBIT benefits from higher revenues and improved margins
EBIT benefits from higher revenues and improved margins EBIT (€ million) EBIT (€ million) Q1 Q1 Change +36.8 % 2008 2007 in % 19.7 Compact Engines without DDE 13.3 9.0 47.8 0.4 DEUTZ Dalian Engines (DDE) (3.2) - - 9.2 Compact Engines incl. DDE 10.1 9.0 12.2 14.4 DEUTZ Customised Solutions 9.2 5.2 76
Slide 12: Net financial position positive; working capital reflects rising volume
Net financial position positive following the sale of DEUTZ Power Systems; working capital reflects rising volume of business Net financial position (€ million) Working capital (€ million) 276.3 196.9 168.6 89.7 50.1 31-Mar- 31-Dec 31-Mar (69.1) 2007 2007 2008 31-Mar- 31-Dec 31-Mar WC-Ratio 12.5 % 1
Slide 13: R&D expenditure increased by 42%
R&D expenditure increased by 42%; €22 million invested in expansion of capacity and in service business R&D (€ million) Capital expenditure (€ million) +41.9 % +0.5 % 22.0 22.1 2.8 1.5 16.6 20.6 19.2 2.5 11.7 14.1 2.0 9.7 Q1 2007 Q1 2008 Q1 2007 Q1 2008 R&D ratio1) 3.5 % 4.2 % 1) R&D expense / Group
Slide 14: Key balance sheet statistics
Key balance sheet statistics € million 31-Mar-2008 31-Dec-2007 Change (%) Total assets 1,387.5 1,378.6 0.6 Equity 570.1 557.1 2.3 Equity ratio (%) 41.1 40.4 - Cash flow from operating activities (20.4) (38.7) - Net financial position 50.1 89.7 -44.1 Working capital 276.3 196.9 40.3 14
Slide 15: Agenda
Agenda Highlights Q1 2008 Dr Helmut Leube, Chairman of Management Board Key performance indicators Q1 2008 Helmut Meyer, CFO Outlook for 2008 Dr Helmut Leube, Chairman of Management Board Appendix 15
Slide 16: Positive Outlook for 2008
Positive Outlook for 2008 2008 Unit sales (DEUTZ Group) >300,000 (+10 %) Unit sales (DEUTZ Dalian) 100,000 - 120,000 Revenue (€ million) +10 % to 15 % Revenue (DEUTZ Dalian) (€ million) >300 EBIT margin (%) ~7 Research and development (€ million) 80 Capital expenditure1) (€ million) >100 1) property
Slide 17: Agenda
Agenda Highlights Q1 2008 Dr Helmut Leube, Chairman of Management Board Key performance indicators Q1 2008 Helmut Meyer, CFO Outlook for 2008 Dr Helmut Leube, Chairman of Management Board Appendix 17
Slide 18: Key Performance Indicators Q1 2008
Key Performance Indicators Q1 2008 € million Q1 2008 Q1 2007 Change (%) Revenue 397.0 335.4 18.4 EBITDA 37.0 31.1 19.0 EBIT 19.7 14.4 36.8 EBIT margin before one-off items (%) 5.0 4.3 - Net income 13.5 5.8 - Basic earnings per share (€) 0.11 0.05 - Number of employees (31 March) 4,909 4,629 6.0 18
Slide 19: Income Statement
Income Statement DEUTZ Group: Change Q1 Income statement (€ million) Q1 2007 in % 2008 Revenue 397.0 335.4 18.4 Changes in inventories and other own work capitalised 13.6 18,2 -25.3 Other operating income 16.7 11.8 41.5 Cost of materials (275.3) (232.3) 18.5 Staff costs (73.4) (65.9) 11.4 Depreciati
Slide 20: Q1 2008: Segment Overview
Q1 2008: Segment Overview Unit Sales Q1 Q1 Delta New orders (€ million) Q1 Q1 Delta 2008 2007 in % 2008 2007 in % Compact Engines 64,777 57,129 13.4 Compact Engines 344.6 340.5 1.2 DEUTZ Customised Solutions 8,009 6,543 22.4 DEUTZ Customised Solutions 88.7 97.2 -8.7 Total 72,786 63,672 14.3 Total 43
Slide 21: Balance Sheet: Assets
Balance Sheet: Assets DEUTZ Group: 31.03. 31.12. Delta Assets (€ million) 2008 2007 in % Non-current assets 509.7 511.3 -0.3 Deferred tax assets 47.6 49.4 -3.6 Inventories 229.3 214.2 7,0 Trade receivables 241.9 188.8 28.1 Other receivables and assets 100.1 102.9 -2.7 Cash and cash equivalents 258.0
Slide 22: Balance sheet: Equity and liabilities
Balance sheet: Equity and liabilities DEUTZ Group: 31.03. 31.12. Delta Equity and liabilities (€ million) 2008 2007 in % Equity 570.1 557.1 2.3 Provisions for pensions and other post retirement benefits 173.0 176.7 -2.1 Other provisions/deferred tax provisions 46.8 46.5 0.6 Financial liabilities (no
Slide 23: Cash Flow Statement (condensed)
Cash Flow Statement (condensed) Q1 Q1 DEUTZ Group € million 2008 2007 EBIT 19.7 14.4 Cash flow from operating activities (continuing operations) (20.4) 3.0 Cash flow from operating activities (discontinued operations) - (13.7) Cash flow from operating activities (total) (20.4) (10.7) Capital expendi
Slide 24: Financial Dates 2008 / 2009
Financial Dates 2008 / 2009 Annual General Meeting Cologne 21 May 2008 Publication Report 1st Half-year 2008 13 August 2008 Press conference Cologne Conference call with analysts and investors Publication Report 1st to 3rd Quarter 2008 7 November 2008 Conference call with analysts and investor
Slide 25: Contact
Contact DEUTZ AG Richard Speich Investor Relations & Public Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Phone: +49 221 822-2492 Fax: +49 221 822-2498 www.deutz.com 25
Slide 26: 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