Q results. 2 May 2018 Dr Frank Hiller, CEO Dr Andreas Strecker, CFO

Transcription

1 Q results 2 May 2018 Dr Frank Hiller, CEO Dr Andreas Strecker, CFO

2 AGENDA Key messages & update on E-DEUTZ Financials Outlook Annex 2

3 Key messages Strong start to the 2018 financial year Exceptional high volume of new orders Marked revenue growth Substantial improvement of profitability Review of carrying amounts at JV DEUTZ Dalian DEUTZ engaged an audit firm to review strategic options for the joint venture According to preliminary estimates, the necessary write-down might impact the consolidated financial statements in the range of 16 million to 32 million 3

4 Update on E-DEUTZ Successful transfer of e-technology from Torqeedo to DEUTZ First DEUTZ hybrid concept presented at trade fair Intermat in Paris Modular scalable hybrid system: combination of TCD 2.9 Stage V diesel engine with electric motor 4

5 AGENDA Key messages & update on E-DEUTZ Financials Outlook Annex 5

6 Key figures million Q yoy qoq New orders % +50.2% Revenue % +7.4% EBITDA (before exceptional items) % -9.9% EBIT (before exceptional items) % +48.6% Net income million million Free cash flow million million Dynamic revenue and EBIT improvement 6

7 Sales figures million New orders Unit sales Revenue +42.6% Units +30.4% million +17.6% ,153 48, Q Q Q Q Q Q Organic revenue growth amounts to 15.0% Torqeedo sold electric drive system in Q

8 Book-to-bill ratio million Q Q Q Q Q New orders Revenue Book-to-bill ratio 1.39x 0.99x 1.03x 1.05x 1.14x Orders on hand Strong increase in order intake across all regions and off-road applications due to very favourable business conditions and changed customer procurement behaviour Customers placed their orders earlier in the light of the high demand and the introduction of emissions standard EU Stage V in the coming year 8

9 Revenue by region Africa/Middle East 2 % 9.1 million ( 13.2 million) Q (Q1 2017) Europe (excl. Germany) 52 % million ( million) Asia-Pacific 9 % 35.2 million ( 32.1 million) million ( million) Americas 18 % 75.1 million ( 66.2 million) Germany 19 % 77.6 million ( 68.4 million) Pro-forma revenue (1) including equity-accounted Chinese JV DEUTZ Dalian: million (+18.3%); this brings the Asia-Pacific region s share of global revenue up to 25% (1) Including 100% of JV revenue 9

10 Revenue by application Other 3 % 10.4 million ( 6.3 million) Automotive 3 % 11.0 million ( 15.7 million) Stationary Equipment 8 % 34.7 million ( 35.5 million) Q (Q1 2017) million ( million) Construction Equipment 31 % million ( million) Material Handling 20 % 83.2 million ( 64.0 million) Agricultural Machinery 15 % 63.2 million ( 50.4 million) Service 20 % 82.3 million ( 79.2 million) Pro-forma Automotive revenue (1) incl. equity-accounted JV DEUTZ Dalian: 91.6 million (18% of revenue) (1) Including 100% of JV revenue 10

11 Operating profit & net income million Q Q EBITDA before except. items D&A EBIT before except. items Exceptional items EBIT after except. items Net interest expense Income taxes Net income EBITDA D&A EBIT Net Income Net interest taxes income expense Significant improvement of EBITDA (+42.5%) due to higher business volume EBIT before exceptional items increased strongly by 14.1 million (+185.5%) Prior year net income benefitted from exceptional positive items ( 10.0 million) 11

12 EBIT (before exceptional items) million Q Q EBIT margin 2.2 % 5.2 % Substantial EBIT improvement driven by higher business volume at DEUTZ Compact Engines EBIT margin at DEUTZ Customised Solutions amounts to 13.3% (Q1 2017: 11.0%) Operating result of Torqeedo (accounted in Segment Other) in line with expectations DEUTZ Compact Engines DEUTZ Customised Solutions Other 12

13 DEUTZ Compact Engines million Q Q Change in % New orders Unit sales (units) 44,563 35, Revenue EBIT (before except. items) >100 million Q Q Change in % New orders Unit sales (units) 44,563 39, Revenue EBIT (before except. items) Double-digit revenue growth in key application segments: Material Handling (+31.4% yoy), Construction Equipment (+30.1% yoy) and Agricultural Equipment (+24.6% yoy) Service revenues increased by 4.6% yoy EBIT improvement ( million yoy) attributable to higher business volume 13

14 DEUTZ Customised Solutions million Q Q Change in % New orders Unit sales (units) 1,762 1, Revenue EBIT (before except. items) million Q Q Change in % New orders Unit sales (units) 1,762 2, Revenue EBIT (before except. items) >100 Book-to-bill ratio amounts to 1.33x Proportion of revenue generated by the service business increased to 55% (Q1 2017: 53%) EBIT increased by 20.3% yoy to 7.7 million due profitable service business 14

15 R&D & capital expenditure million Gross expenditure Reimbursements Net expenditure R&D expenditure Capital expenditure (excl. R&D) Net R&D expenditure ratio (1) Q Q % 4.5% R&D increased in line with guidance Proportion of capitalised net R&D expenditure: 4.3 million (Q1 2017: 3.6 million) Q Q Capex increase according to budget (1) Ratio of net R&D expenditure to consolidated revenue 15

16 Working capital & operating cash flow million Working capital Operating cash flow Working capital ratio 31 Mar Mar % 16.9% Working capital increased by 62.9 million mainly due to higher business volume Q Q Operating cash flow decline attributable to higher working capital 16

17 Free cash flow generation & net financial position million Free cash flow (1) Net financial position Q (LTM) 31 Mar Mar 2018 Free cash flow decline due to lower operating cash flow Net financial position increased by 18.9 million (1) Free cash flow: cash flow from operating and investing activities less net interest expense 17

18 Equity ratio & funding million 1, % , % Mar Mar 2018 up to 1 year up to 2 years Total assets Equity xx.x% Equity ratio Repayment schedule up to 5 years up to 10 years Duration of credit line Strong balance sheet; equity ratio amounts to 49.0% Medium- to long-term financing with undrawn facilities available: Credit line of 160 million until June 2022 Loan from European Investment Bank repayable by July

19 Summary Exceptional high volume of new orders Dynamic revenue growth and EBIT improvement Successful transfer of e-technology from Torqeedo First E-DEUTZ hybrid concept presented at trade fair Intermat Review of carrying amounts at JV DEUTZ Dalian initiated Strong balance sheet 19

20 AGENDA Key messages & update on E-DEUTZ Financials Outlook Annex 20

21 Forecast for key end-customer markets, 2018 Europe North America China Unit sales (equipment) Construction Equipment +5% to +10% +5% to +10% +10% to +20% Material Handling +5% to +10% +5% to +10% +10% to +20% Agricultural Machinery 0% to +5% 0% to +5% -5% to 0% Medium & Light-Duty Trucks 0% to +5% 21

22 Financial outlook million Revenue FY 2017 reported 1,479.1 FY 2018 guidance marked increase EBIT margin (before exceptional items) (1) 2.9 % moderate increase R&D expenditure (2) Capex (excl. R&D) (2) (1) Subject to final results of review of carrying amounts at JV DEUTZ Dalian (2) Net of reimbursements 22

23 AGENDA Key messages & update on E-DEUTZ Financials Outlook Annex 23

24 Summary of key financials (I) million Q Q Change (%) Revenue EBITDA EBITDA (before exceptional items) EBIT EBIT (before exceptional items) >100 EBIT margin %-pts EBIT margin (before exceptional items), % %-pts Net income Basic earnings per share ( ) Number of employees (31 March) 4,245 3,

25 Summary of key financials (II) million Q Q Change (%) Total assets 1, , Equity Equity ratio (%) %-pts Cash flow from operating activities Free cash flow (1) Net financial position Working capital (1) Free cash flow: cash flow from operating and investing activities less net interest expense 25

26 Income statement million Q Q Change (%) Revenue Cost of sales Research and development costs Selling expenses General and administrative expenses Other operating income Other operating expenses Profit/loss on equity-accounted investments Other investment income EBIT Thereof: Exceptional items Interest expense, net Net income before income taxes Income taxes Net income

27 Balance sheet: assets million 31 Mar Dec 2017 Change (%) Non-current assets (before deferred tax assets) Deferred tax assets Inventories Trade receivables Other receivables and assets Cash and cash equivalents Non-current assets classified as held for sale Total assets 1, ,

28 Balance sheet: equity & liabilities million 31 Mar Dec 2017 Change (%) Equity Provisions for pensions and other post-retirement benefits Deferred tax liabilities Other provisions Financial liabilities Other liabilities Non-current liabilities Provisions for pensions and other post-retirement benefits Other provisions / Provisions for income taxes Financial liabilities Trade payables Other liabilities Current liabilities Total equity and liabilities 1, ,

29 Cash flow statement (condensed) million Q Q EBIT Cash flow from operating activities (total) Capital expenditure on intangible assets, property, plant and equipment and investments Proceeds from the sale of non-current assets Cash flow from investing activities (total) Cash flow from financing activities Change in cash and cash equivalents

30 Overview of segments New orders ( million) Q Q Change (%) Revenue ( million) Q Q Change (%) DEUTZ Compact Engines DEUTZ Customised Solutions Other Total for operating activities DEUTZ Compact Engines DEUTZ Customised Solutions Other Total for operating activities Unit sales Q Q Change (%) EBIT before exceptional items Q1 ( million) 2018 Q1 Change 2017 (%) DEUTZ Compact Engines 44,563 35, DEUTZ Customised Solutions 1,762 1, Other 2, Total for operating activities 48,458 37, DEUTZ Compact Engines >100 DEUTZ Customised Solutions Other Total for operating activities >100 30

31 Employees 31 Mar Dec 2017 Change (%) Cologne 2,428 2, Ulm Other German operations Germany 3,137 3, Foreign operations 1,108 1, DEUTZ Group 4,245 4,

32 Financial calendar & contact details H results 2 August 2018 Q1-Q results 8 November 2018 FY 2018 results 14 March 2019 Contact details Christian Krupp Tel:+49 (0) SVP Finance, Public and Investor Relations Fax:+49 (0) Ottostrasse 1 christian.krupp@deutz.com Cologne (Porz-Eil), Germany 32

33 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. Such discrepancies may be caused by changes in political, economic or business conditions, a decrease in the technological lead of DEUTZ's products, changes in competition, the effects of movements in interest rates or exchange rates, the pricing of parts supplied and other risks and uncertainties not identified at the time this document was prepared. The forward-looking statements made in this document will not be updated. 33

34 THANK YOU VERY MUCH 34