DEUTZ AG DEUTZ
FY 2023 results
March 19, 2024
Overview of FY 2023 & Strategy Update
Dr. Sebastian C. Schulte
Again, 2023 was a year of profitable growth for DEUTZ!
Solid growth
Profitability increase
3.0% | 7.6% | 7.8% | 5.7% | 7.0% | 8.8% |
Growth in number
of engines sold
186,718 engines
(Classic segment)
Service revenue | Group revenue | EBIT margin2 | EBIT margin3 | Classic EBIT |
growth | growth1 | (Group): | continued | margin3 |
to | to | €120 million; | operations | |
€484 million | €2.1 billion | +35% vs. 2022 | €144 million |
3 1 Incl. Torqeedo. 2 Before extraordinary items, incl. Torqeedo. 3 Before extraordinary items. | DEUTZ FY 2023 results | March 19, 2024 |
DEUTZ with a track record of delivering our promises
Unit sales
Units1
Revenue
EBIT margin2
Free cash flow3
Guidance vs. actual
2021 2022
Guidance
2023
185,000-190,000
~€2.1 billion
5.3-5.8%
Mid double-digit-
million-euro amount
2023 actual
186,718
€2.1 billion
5.7%
€55.9 million
4 1 DEUTZ Classic engines. 2 Before extraordinary items. 3 excl. M&A. | DEUTZ FY 2023 results | March 19, 2024 |
Order intake with positive trend
Book-to-bill trend (DEUTZ Classic)
Revenue and new orders in € million
600 | Revenue | |||||
500 | ||||||
(indicative) | ||||||
400 | ||||||
300 | New orders | |||||
200 | ||||||
100 | ||||||
0 | ||||||
Q4 22 | Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24e | |
Book-to- | 93% | 102% | 92% | 84% | 63% | |
bill ratio | ||||||
5
- Normalization after end of fixed- volume program and stabilization of supply chain
- Orders on hand of 3-4 months
- USA remains most dynamic region
- Positive trend in new orders foreseeable for Q1 2024
DEUTZ FY 2023 results | March 19, 2024
DUAL+ strategy
I | II |
Grow CLASSIC market based on performance and market consolidation
Enhance profitability and growth
+
Build a GREEN ecosystem with relevant products and technologies
Investments, growth and long-term profitability
Expand profitable SERVICE business around the world
Profitability through organic and inorganic growth
6 | DEUTZ FY 2023 results | March 19, 2024 |
Implementation of strategy with positive impact on 2023 result
All pillars of our strategy contribute to sustainable performance improvement
€ million
+61% | Reporting | |||||
incl. Torqeedo | ||||||
144 | ||||||
120 | ||||||
89 | ||||||
Adjusted | Classic: | Service: | Green: | Green: | Adjusted EBIT | Adjusted |
EBIT 2022 | margin & | margin & | higher R&D | Torqeedo | continued | EBIT 2023 |
growth | growth | spend | divestiture | operations 2023 | ||
7 | DEUTZ FY 2023 results | March 19, 2024 |
Classic segment highlights
Strategic partnerships and focus on performance
Strategic partnerships | Performance improvements | |||||
- Active market consolidation initiated - an important step closer to our goal of becoming one of the top 3 independent engine producers by 2030
- Partnership with Daimler Truck for HDEP and MDEG engines: implementation by 2028
- Partnership with Rolls-Royce Power Systems: earlier takeover of sales activities for HDEP and MDEG off-highwayengines, start in 2024
- Continuation of our successful pricing campaign
- Efficiency enhancement in production, including automation
- Flexible capacity management: third shift established in summer 2023, reduction in February 2024
- Successful management of suppliers' price increase requests; focus on reducing material costs in 2024
€
8 | DEUTZ FY 2023 results | March 19, 2024 |
Service highlights | Implementation of growth strategy
10-year growth of >7% p.a., increased growth since 2021
Service revenue growth
€ million
259 | 278 | 287 |
+12% | 600 | |||
+7% | 484 | |||
450 | ||||
403 | ||||
330 | 352 | 348 | ||
309 | ||||
▪ Consistent implementation of Service |
strategy (target: €600 million top line |
in 2025) |
▪ Further development of existing |
business as key driver |
▪ Expansion of service center |
network (e.g. USA), innovative |
approaches (e.g. "Technician in a |
Van") |
▪ Growth contribution from acquisitions: |
FY contribution of South Coast and |
Ausma as well as first revenue from |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2025e |
DEUTZ Nordic and Hochschild |
9 | DEUTZ FY 2023 results | March 19, 2024 |
Green highlights
Divestiture of Torqeedo
- Sale of Torqeedo to Yamaha Motors - as "best owner"
- Important step in ongoing process of repositioning and focusing Green segment
- Basis to focus on more customer-oriented approach towards green drivetrains
- Key aspects of the transaction:
- Torqeedo EBIT loss in 2023 approx. -€23 million
- Signing in January 2024, closing expected after Easter
- Cash-inexpected in high double-digit-million-euro range
- Book gain expected in low double-digit-million-euro range
Divestiture of Torqeedo: important step in refocusing Green segment
DEUTZ FY 2023 results | March 19, 2024
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Deutz AG published this content on 19 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2024 06:40:05 UTC.
