DGAP-News: DEUTZ AG / Key word(s): Quarterly / Interim Statement 
DEUTZ AG: High hopes for 2021 following a successful start to the year for DEUTZ 
2021-05-06 / 07:30 
The issuer is solely responsible for the content of this announcement. 
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  . Significant new order growth; orders on hand up by around 48 percent year on year 
  . Strong improvement in profitability and free cash flow 
  . Further progress with implementing Transform for Growth; voluntary redundancy program taken up in full 
  . Rigorous implementation of strategic growth initiatives 
  . Full-year guidance for 2021 raised despite difficult supply situation 
Having finished a year dominated by coronavirus with a much improved fourth quarter in 2020, the uptrend for DEUTZ 
continued into the first quarter of 2021. This could be seen from the recently published preliminary results, which the 
Company has confirmed today. 
"The successful start to the year shows that DEUTZ is back on course for growth. Our new orders were up by around a 
third year on year in the first quarter of 2021, while orders on hand rose by almost a half. And although we will be 
dealing with the coronavirus pandemic for quite some time to come, we anticipate a sustained increase in customers' 
propensity to proceed with capital expenditure in all of the main application segments," said DEUTZ CEO Dr. Frank 
Hiller. 
As well as a healthy operating performance, further strategic milestones were reached. In China, the world's largest 
engine market, the joint venture with SANY continues to operate profitably. Its unit sales amounted to around 8,000 
engines in the first quarter of this year and the aim is to increase this to between 35,000 and 40,000 engines in 2021. 
At the Tianjin site, DEUTZ and BEINEI have begun to manufacture the 2.9 engine series as planned. Establishment of the 
purchasing organization in China is also proceeding according to schedule. The intention behind this is to achieve the 
highest possible localization rate and thus significantly lower costs for materials and logistics. 
DEUTZ also forged ahead with the ongoing expansion of its high-margin service portfolio in the reporting period. At the 
start of 2021, the Company added to its analog service concepts by launching a Lifetime Parts Warranty for engines that 
have been registered with DEUTZ online. Recording these engines in the internal service systems is an important step to 
be able to further optimize DEUTZ's service offering and strengthen customer loyalty. Activity under the regional 
growth initiatives included expansion of the service network in the USA: The establishment of a new DEUTZ Power Center 
got under way in the Dallas metropolitan area. The ongoing expansion supports the planned increase in total revenue of 
the profitable service business to around EUR400 million by the end of 2021. 
At the start of February, DEUTZ signed a long-term supply agreement with agricultural equipment manufacturer SDF. As 
well as the supply of engines with a capacity of below and above 4 liters, the agreement includes expansion of the 
service business between the two companies and is expected to result in additional annual revenue in the 
low-double-digit millions of euros. 
DEUTZ CFO Dr. Sebastian C. Schulte reported on the progress with the efficiency program: "The restructuring measures 
that we have initiated are already having a noticeable positive impact. For example, the cost savings achieved enabled 
us to significantly improve our profitability in the reporting period. This shows that we are on the right track to be 
able to lower the break-even point to our target of 130,000 DEUTZ engines." By the end of 2022, DEUTZ intends to 
realize potential cost savings of around EUR100 million gross per year, compared with the base year of 2019. Another 
important milestone in this context was achieved with regard to the voluntary redundancy program, which originally 
aimed to reduce the number of positions by 350 but had been taken up 361 employees by the time that the program ended. 
New orders up sharply by around a third 
On the back of market demand that was better than originally expected, new orders received by DEUTZ in the first 
quarter of 2021 jumped by 30.3 percent compared with the first quarter of 2020 to reach EUR464.8 million. All of the 
regions and main application segments recorded double-digit percentage increases. As at March 31, 2021, orders on hand 
stood at EUR394.3 million, which was up by a substantial 47.6 percent year on year. Within this figure, orders on hand in 
the high-margin service business rose by an impressive 50.0 percent to EUR31.8 million. 
Year-on-year rise in unit sales of DEUTZ engines 
The Group's sales totaled 38,384 units in the first quarter of 2021, which was 4.2 percent fewer than in the prior-year 
period owing to substantial decreases in the Stationary Equipment and Miscellaneous application segments. The decrease 
in the Miscellaneous application segment was mainly attributable to the business with electric drives for boats at 
Torqeedo, whose unit sales fell by 28 percent year on year to 6,135 electric motors. The reasons for this included a 
decline in demand in the US recreational sector, delays in the procurement of materials, and longer logistics lead 
times. By contrast, the other application segments saw increases in unit sales. Unit sales of DEUTZ engines^[1] rose by 
2.2 percent year on year to reach 32,249 engines sold. 
Revenue increased only slightly year on year due to coronavirus 
Despite the fall in the Group's unit sales, consolidated revenue went up by 1.1 percent to EUR343.4 million owing to the 
increase in the number of higher-value DEUTZ engines^1 sold in the reporting period. The application segments and 
regions presented a disparate picture. As a result of the ongoing lockdowns in Europe, revenue in the EMEA region was 
at more or less the same level as in the prior-year period, whereas the Asia-Pacific region's revenue went up sharply 
thanks, in particular, to the significant expansion of business in the Construction Equipment application segment. 
There was a decline in the Americas that was mainly attributable to the effects of the coronavirus pandemic combined 
with longer transportation lead times, which had been less pronounced in the first quarter of 2020. 
Strong improvement in profitability; efficiency program already paying off 
EBIT before exceptional items (operating profit) improved significantly to a profit of EUR0.8 million in the first three 
months of this year (Q1 2020: loss of EUR11.8 million) due to the increasingly noticeable effect of cost savings 
resulting from the restructuring that is under way. Furthermore, the figure for the prior-year period had been burdend 
by payments to suppliers going through insolvency proceedings. The EBIT margin before exceptional items improved to 0.2 
percent, compared with minus 3.5 percent in the first quarter of 2020. 
As a result of the increase in operating profit, the net loss declined by EUR9.1 million to EUR0.9 million. Earnings per 
share therefore improved from minus EUR0.08 to minus EUR0.01. The net loss before exceptional items stood at EUR0.5 million 
and earnings per share before exceptional items at EUR0.00. 
Clear improvement in free cash flow and comfortable financial position 
Thanks to the improvement in operating profit and a favorable level of working capital, cash flow from operating 
activities was significantly better, amounting to a net cash inflow of EUR17.1 million (Q1 2020: net cash outflow of 
EUR11.9 million). As a result of this, coupled with the reduction in investing activities, free cash flow was up by a 
substantial EUR33.8 million compared with the first quarter of 2020 and amounted to a net cash outflow of EUR1.7 million. 
Net financial debt was slightly higher than at the end of 2020, rising by EUR3.4 million to EUR87.2 million as at March 31, 
2021. In view of the sound equity ratio, which - as it had been in the prior-year period - was above the target figure 
of 40 percent, the DEUTZ Group's financial position remains comfortable. Moreover, the Company continues to have 
unutilized credit lines totaling around EUR245 million at its disposal. 
Positive outlook for 2021 and 2023/2024 
Despite the difficult supply situation, DEUTZ recently raised its full-year guidance for 2021, having made a successful 
start to the new year.^[2] It now expects unit sales of 140,000 to 155,000 DEUTZ engines in 2021.^[3] This should 
result in an increase in revenue to between EUR1.5 billion and EUR1.6 billion. In view of the continued successful 
expansion of the service business, DEUTZ still anticipates that service revenue will rise to around EUR400 million. In 
terms of the Company's profitability, the revenue target and the realization of further potential cost savings indicate 
that the EBIT margin before exceptional items is likely to be in a range of 1.0 percent to 2.0 percent. 
In the medium term, DEUTZ continues to predict an increase in revenue to more than EUR2.0 billion in 2023/2024 and an 
EBIT margin before exceptional items of between 7 percent and 8 percent. 
DEUTZ Group: overview of key figures 
EUR million                                        Q1 2021 Q1 2020 Change 
New orders                                         464.8   356.7  30.3% 
Group's total unit sales (units)                  38,384  40,069  -4.2% 
thereof DEUTZ engines                             32,249  31,546   2.2% 
thereof Torqeedo                                   6,135   8,523 -28.0% 
Revenue                                            343.4   339.8   1.1% 
EBIT                                                 0.4   -11.8      - 
thereof exceptional items                           -0.4     0.0      - 
Operating profit/loss                                0.8   -11.8      - 
(EBIT before exceptional items) 
EBIT margin (%)                                      0.1    -3.5 +3.6pp

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