DEUTZ : Presentation Capital Markets Day, November 2021 | Market Outlook and Strategic Positioning, CSO

Market Outlook and Strategic Positioning

Michael Wellenzohn, CSO

November 17, 2021 | Coreum

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, decreases 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.

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Market Outlook

Upswing in all relevant business areas continues

Generally, we are in very cyclical & dynamic market, however experiencing positive trends in all relevant areas:

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Construction: Government initiated stimuli as e. g. Infrastructure bill will lead to increased demand for construction equipment

Material Handling: Demand for consumer goods is expected to remain high and industrial goods will continuously be moving around the globe. This will support development in Material Handling segment

Agriculture: As market prices for groceries are rising, farmers are more likely to invest in new equipment

Rental companies: Forecasted investment for 2022 & 2023 shows significant growth which will boost their demand for equipment

Stationary Equipment: Demand for generators, pumps, welders is on a high level and is expected to develop further due to the growth of different segments

Mining: Increasing indices for commodity goods demand for mining equipment will remain high

Oil: Since price is already on stable level and continuously rising due to global demand of energy, fracking and oil sand washing becomes interesting again and will require equipment

Further governmental stimuli for infrastructures are in planning and will further drive demand

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Market Indices and Global Indicators

Indicators support the strong outlook for 2022

Agricultural machinery sales1

Rental Companies3

Capex outlook

FY 2021-20

FY 2021-19

FY 2022-21

+186% +29% +75%

+230% +21% -

Construction equipment sales Q1-Q3 2021/202

World

+25%

	140		Food Price Index4
months	120
100
12
	80
	10-2011-20	12-20	01-21	02-21	03-21	04-21	05-21	06-21	07-21	08-2109-21
	140
years	120
100
3
	80
	12-18	06-19		12-19		06-20		12-20	06-21

4	1 Source: VDMA "Business climate and market development", August 2021; 2 Source: VDMA "CE Snapshot", October 2021;	DEUTZ | Capital Markets Day 2021
	3 Source: Association and company websites, August 2021; 4 Source: IHS Markit - October 2021

Some Headwinds remain, but manageable

Trade War

International Logistic

Covid-19

Power-Cut

Chip Shortage

Building Material

Despite the headwinds we see 2022 very positively

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