Deutz Ag · XETR:DEZ

Deutz — Corporate Update (October 2008)

10 slides from Deutz's corporate update, Oct 13, 2008

  1. Slide 1: Conference Call Outlook 2008

    CONFERENCE CALL OUTLOOK 2008 Dr Helmut Leube, CEO Helmut Meyer, CFO 13 October 2008

  2. Slide 2: Global economic growth has slowed significantly

    Global economic growth has slowed significantly „ The sharp deterioration in economic conditions as a result of the global financial crisis has become increasingly evident during 2008 „ GDP growth is expected to continue to slow in 2009 % year on year 2007 2008e 2009e Germany 2.5 2.0 0.8 Euro zone 2

  3. Slide 3: Sectoral data confirms this trend

    Sectoral data confirms this trend „ German Engineering Federation (VDMA) reports fall in new orders for fourth successive month % year on year Germany International May -12 % - 12 % -12 % June - 5% + 1% - 7% July - 8% - 1% -11 % August -10 % + 6% -19 % „ ifo Business Climate Index continued to fall

  4. Slide 4: DEUTZ revises outlook for 2008 to reflect rapidly changing global market conditions

    DEUTZ revises outlook for 2008 to reflect rapidly changing global market conditions Outlook 2008 Old New Unit sales (DEUTZ Group) ~ 2007 level ~ 260,000 (~ 286,000) Revenue growth (%) up ~ 5 % up by as much as 2 % EBIT margin (%) ~6% ~2% R & D (€ million) 80 80 Unit sales (DEUTZ Dalian) 100,000 - 12

  5. Slide 5: Main reasons for revising the outlook

    Main reasons for revising the outlook „ Fall in new orders and unit sales of compact engines • especially for engines under four litres • in all application segments except for Agricultural Machinery • in all regions except for eastern Europe • four to eight-litre engines: unit sales below forecast,

  6. Slide 6: Encouraging performance by DCS and service business

    Encouraging performance by DCS and service business „ DEUTZ Customised Solutions continues to perform well • Year-on-year increase in revenue forecast • No need to adjust production capacities in Ulm „ Service business generating encouraging growth • Aims to achieve further revenue growth in DCE and

  7. Slide 7: Sharp focus on improving profitability

    Sharp focus on improving profitability „ Measures: • Cost-cutting drive beginning to yield results • Process improvements introduced • Earnings already increased by a double-digit million euro amount • Systematic and ongoing reduction of product-related costs • Product offensive launched for compact

  8. Slide 8: Financial calendar for 2008/2009

    Financial calendar for 2008/2009 „ Interim report Q1 to Q3 2008 7 November 2008 Conference call with analysts and investors „ Annual Results Press Conference Cologne 19 March 2009 Publication of annual report for 2008 „ Analysts' meeting Frankfurt am Main 20 March 2009 „ Annual General Meeting Colog

  9. Slide 9: Contact

    Contact DEUTZ AG Sandra Siegele Investor Relations Ottostrasse 1 51149 Cologne (Porz-Eil) Tel.: +49 (0)221 822 2492 Fax: +49 (0)221 822 2498 www.deutz.com Conference Call Outlook 2008 13 October 2008 9

  10. Slide 10: 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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