Deutz Ag · XETR:DEZ
Deutz — FY2012 Earnings Presentation
33 slides from Deutz's earnings presentation, Mar 19, 2013
Slide 1: 2012 financial year – power in motion
2012 financial year – power in motion 19 March 2013 Dr Helmut Leube, CEO Dr Margarete Haase, CFO
Slide 2: Agenda
Agenda Review FY 2012 Outlook Annex 2012 financial year 19 March 2013 2
Slide 3: Key figures FY 2012
Key figures FY 2012 2012 yoy € million Revenue 1,291.9 -15.5% EBIT 38.5 -57.8% Net income 21.0 -72.2% Free cash flow 12.6 +162.5% Net financial debt 48.6 -30.2% Equity ratio (%) 46.8 +5.5%-pts Stronger balance sheet and free cash flow despite challenging market environment 2012 financial year 19 M
Slide 4: Strategic highlights
Strategic highlights Cost reduction, efficiency enhancement and review of value chain - Further measures to boost efficiency implemented; e.g. overhead costs reduced - Established structures under review, e.g. outsourcing of pipe manufacturing to optimise value chain - Divestment of JV Bosch Emiss
Slide 5: Sales figures
Sales figures Order Intake Unit Sales Revenue € million Units € million -16.4% -22.5% -15.5% 1,479.3 230,598 1,529.0 305.1 1,237.1 26,437 178,774 329.9 1,291.9 16,875 286.9 276.5 1,174.2 204,161 1,199.1 161,899 960.6 1,005.0 2011 2012 2011 2011 2012 2012 Sales decline caused by weaker markets in E
Slide 6: Revenue development
Revenue development € million 405.5 388.1 399.4 368.7 336.0 336.9 344.1 322.5 298.1 285.9 288.4 236.4 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 In 2011, DEUTZ achieved a revenue record level Economic slowdown diminished demand in the course of 2012 2012 financial ye
Slide 7: Revenue split
Revenue split Revenue split by application, 2012 Revenue split by region, 2012(1) (2011) (2011) Other 1% Mobile Machinery 37% Africa/Middle East 6% Europe (excl. Germany) 52% €15.3 million €477.5 million €83.9 million €668.3 million (€76.0 million) (€529.4 million) (€87.8 million) (€860.6 million) S
Slide 8: Service business revenue
Service business revenue € million 241.6 250.3 212.0 215.8 203.5 179.7 175.0 2006 2007 2008 2009 2010 2011 2012 Further growth of service business supported by network extension (e.g. Madrid and Moscow) Profitable service business less exposed to economic cycles 2012 financial year 19 March 2013
Slide 9: EBIT
EBIT 91.2 € million 46.5 38.5 7.5 47.2 46.6 13.9 3.0 13.3 12.5 6.7 -2.5 -8.6 -6.1 -15.6 -0.9 2011 2012 Q3 2012 Q4 2012 EBIT margin 6.0% 3.0% 1.0% 4.3% Profitability mainly impacted by volume decline; improvement in Q4 Profit contribution of Joint Ventures was a burden for EBIT in 2012 Series s
Slide 10: Net income 2012
Net income 2012 € million 38.5 -10.6 -1.4 -4.4 22.1 21.0 -1.1 EBIT Net interest Other Income Net income Discontinued Net expense taxes taxes (continuing operations income operations) Net income decreased in 2012 to €21.0 million (FY 2011: €75.5 million) New funding arranged at mid-year with posi
Slide 11: R&D spending and capital expenditure
R&D spending and capital expenditure R&D Capital expenditure (excl. R&D) € million 109.8 Gross expenditure Reimbursements 25.2 82.7 69.0 Net expenditure 20.6 2.6 44.9 84.6 3.8 62.1 66.4 41.1 2011 2012 2011 2012 Net R&D ratio(1) 5.5% 4.8% R&D spending scaled back according to plan due to Increase
Slide 12: Net financial position and working capital
Net financial position and working capital Net financial position Working capital € million 142.1 141.6 2011 2012 2011 2012 Working -48.6 capital ratio 9.3% 11.0% -69.6 (31 Dec) Net financial position improved by €21.0 million yoy Working capital at previous year level Free cash flow €12.6 mil
Slide 13: Financial position and funding
Financial position and funding € million 1,099.0 1,041.7 1,026.4 35.9% 41.3% 46.8% 453.5 480.1 374.3 204 1 7 41 2010 2011 2012 up to up to up to up to 1 year 2 years 5 years 10 years Total assets Equity xx.x% Equity ratio Repayment schedule (residual term) New unsecured credit line of €160 million
Slide 14: Overview of segments: DEUTZ Compact Engines
Overview of segments: DEUTZ Compact Engines Change Q4 Q3 Change € million 2012 2011 in % € million 2012 2012 in % New orders 960.6 1,174.2 -18.2 New orders 214.0 197.8 8.2 Unit sales 161,899 204,161 -20.7 Unit sales 42,882 34,406 24.6 Revenue 1,005.0 1,199.1 -16.2 Revenue 252.5 217.7 16.0 EBIT -15.6
Slide 15: Overview of segments: DEUTZ Customised Solutions
Overview of segments: DEUTZ Customised Solutions Change Q4 Q3 Change € million 2012 2011 in % € million 2012 2012 in % New orders 276.5 305.1 -9.4 New orders 62.6 61.7 1.5 Unit sales 16,875 26,437 -36.2 Unit sales 3,671 3,962 -7.3 Revenue 286.9 329.9 -13.0 Revenue 70.0 70.7 -1.0 EBIT 46.6 46.5 0.2 E
Slide 16: Summary: key development
Summary: key development Groundwork laid for growth Well advanced strategic talks with AB Volvo to extend cooperation Further measures to improve profitability implemented Ramp-up phase of new engines Decline of R&D expenses; amortisation increased Positive free cash flow Sound balance sheet 2012 fi
Slide 17: Agenda
Agenda Review FY 2012 Outlook Annex 2012 financial year 19 March 2013 17
Slide 18: Financial outlook
Financial outlook FY 2012 reported Guidance FY 2013 € million Revenue 1,291.9 > 1,400 EBIT margin (%) 3.0 > 3.0 Net R&D expenditure(1) 62.1 ~ 55 Net capex (excl. R&D)(1) 66.4 60 - 70 (1) Net of reimbursements Results improvement expected in FY 2013 Order intake in Q1 2013 will be better than in
Slide 19: Unit sales assumptions for DEUTZ key markets
Unit sales assumptions for DEUTZ key markets 2013 Mobile Machinery Europe sidewards North America 0 – 10% China > 10% Agricultural Machinery Europe sidewards Automotive Europe sidewards China > 10% Challenging market conditions in Europe expected to continue Revenue will grow faster than unit sa
Slide 20: Q&A
Q&A 2012 financial year 19 March 2013 20
Slide 21: Agenda
Agenda Review FY 2012 Outlook Annex 2012 financial year 19 March 2013 21
Slide 22: Summary of key financials (I)
Summary of key financials (I) € million 2012 2011 Change (%) Revenue 1,291.9 1,529.0 -15.5 EBITDA 123.1 160.3 -23.2 EBIT 38.5 91.2 -57.8 EBIT margin (%) 3.0 6.0 -- Net attributable income 21.0 75.5 -72.2 Basic earnings per share (€) 0.17 0.62 -72.6 Number of employees (31 December) 3,991 4,060 -1.7
Slide 23: Summary of key financials (II)
Summary of key financials (II) € million 2012 2011 Change (%) Total assets 1,026.4 1,099.0 -6.6 Equity 480.1 453.5 5.9 Equity ratio (%) 46.8 41.3 -- Cash flow from operating activities 104.9 120.0 -12.6 Free cash flow 12.6 4.8 >100.0 Net financial position -48.6 -69.6 30.2 Working capital (31 Decemb
Slide 24: Income statement
Income statement € million 2012 2011 Change (%) Revenue 1,291.9 1,529.0 -15.5 Changes in inventories and other own work capitalised 37.0 44.7 -17.2 Other operating income 52.5 37.5 40.0 Cost of materials -862.9 -1,021.1 -15.5 Staff costs -268.0 -276.8 -3.2 Depreciation and amortisation -84.6 -69.1 2
Slide 25: Balance sheet: assets
Balance sheet: assets 31 Dec 31 Dec Change € million 2012 2011 (%) Non-current assets (excluding deferred tax assets) 621.3 623.1 -0.3 Deferred tax assets 17.9 17.2 4.1 Inventories 184.4 187.6 -1.7 Trade receivables 116.1 163.6 -29.0 Other receivables and assets 32.8 55.5 -40.9 Cash and cash equival
Slide 26: Balance sheet: equity and liabilities
Balance sheet: equity and liabilities 31 Dec 31 Dec Change € million 2012 2011 (%) Equity 480.1 453.5 5.9 Provisions for pensions and other post-retirement benefits 141.6 148.5 -4.6 Deferred tax provisions 3.2 2.8 14.3 Other provisions 25.4 29.3 -13.3 Financial liabilities 99.6 119.3 -16.5 Other lia
Slide 27: Cash flow statement (condensed)
Cash flow statement (condensed) € million 2012 2011 EBIT 38.5 91.2 Cash flow from operating activities (total) 104.9 120.0 Capital expenditure on intangible assets, property, plant and equipment and investments -104.0 -103.0 Proceeds from the sale of non-current assets 22.6 0.7 Cash flow from invest
Slide 28: Overview of segments, 2012
Overview of segments, 2012 Change Change New orders (€ million) 2012 2011 (%) Unit sales 2012 2011 (%) DEUTZ Compact Engines 960.6 1,174.2 -18.2 DEUTZ Compact Engines 161,899 204,161 -20.7 DEUTZ Customised Solutions 276.5 305.1 -9.4 DEUTZ Customised Solutions 16,875 26,437 -36.2 Total for operating
Slide 29: Overview of segments, Q4 2012
Overview of segments, Q4 2012 Q4 Q4 Change Q4 Q4 Change New orders (€ million) 2012 2011 (%) Unit sales 2012 2011 (%) DEUTZ Compact Engines 214.0 236.9 -9.7 DEUTZ Compact Engines 42,882 54,946 -22.0 DEUTZ Customised Solutions 62.6 72.6 -13.8 DEUTZ Customised Solutions 3,671 7,144 -48.6 Total for ope
Slide 30: Employees
Employees 31 Dec 31 Dec Change 2012 2011 (%) Cologne 2,489 2,561 -2.8 Ulm 413 471 -12.3 Other German operations 287 293 -2.0 Germany 3,189 3,325 -4.1 Foreign operations 802 735 9.1 DEUTZ Group 3,991 4,060 -1.7 2012 financial year 19 March 2013 30
Slide 31: Shareholder structure
Shareholder structure AB Volvo 25.0% Number of Free float 66.6% shares: 120,861,783 SAME DEUTZ-FAHR 8.4% Share key data WKN 630500 ISIN DE0006305006 Reuters symbol DEZG.DE Bloomberg symbol DEZ:GR 2012 financial year 19 March 2013 31
Slide 32: Financial calendar & contact details
Financial calendar & contact details Annual General Meeting Cologne 30 April 2013 Interim report 1st quarter 2013 8 May 2013 Interim report 1st half 2013 8 August 2013 Interim report 1st to 3rd quarter 2013 7 November 2013 Contact details Christian Krupp Tel:+49 (0) 221 822 5400 Ottost
Slide 33: 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.