DEUTZ AG Deep Dive CMD 2023 | Growth and Profitability with CFO

Overview of the Presentation Join us for a deep dive into the Capital Markets Day 2023 presentation by Deutz AG, featuring Timo Krutoff, the CFO. In this engaging presentation, Timo shares insights into the company’s recent achievements and ambitious plans for the future. About Timo Krutoff Timo Krutoff, a veteran with 18 years of experience in the automotive supply industry, including key roles such as CFO of a world-leading assembled camshaft manufacturer and a prominent shock absorber company, guides us through their journey. Deutz AG’s Achievements and Commitment He emphasizes Deutz AG’s commitment to regaining trust, underscored by their ability to confirm guidance despite challenging economic conditions. Key Performance Indicators This year, they aim to produce 195,000 engines, achieve around 2.1 billion in sales, maintain an EBIT margin of approximately 5%, and generate a double-digit million euro positive free cash flow before M&A. Growth and Financial Highlights Timo reflects on its remarkable growth, with sales increasing by 23% from 2020 to 2022 and a 10.4 percentage point rise in EBIT margin from 2020 to 2021. He also highlights the impressive 63 million euros in EBIT generated in just six months this year, almost twice the amount from the previous year. Insights into Deutz AG’s Business Segments Classic Business The presentation delves into Deutz AG’s classic business, which still constitutes 97% of its total sales, and its impressive 88.7% EBIT margin in the year’s first half. Timo elaborates on their strategies, including comprehensive pricing reviews and the advantage of scale effects. Green Segment Challenges Additionally, Timo provides insights into the green segment, which faces unique challenges this year due to product transitions. He explains that investments in green R&D are not capitalized, impacting expenses, but are essential for the company’s future. Future Plans and Targets Looking ahead, Deutz AG has ambitious plans, aiming to achieve 2.5 billion in sales by 2025. This includes selling 30,000 more engines, optimizing production processes, adjusting pricing, focusing on larger engines, and expanding their service business. Financial Strategies Timo emphasizes its target EBIT margin of 6 to 7%, supporting scale effects, performance improvements, cost reduction initiatives, and digitalization. Financial Management and Policies Furthermore, Timo provides insights into its cash flow management, dividend policies, and capital allocation for R&D and M&A activities. He emphasizes their strong financial position and M&A firepower, positioning Deutz AG for growth and success. ▶️ Other videos: Elevator Pitch: https://seat11a.com/investor-relations-elevator-pitch/ Company Presentation: https://seat11a.com/investor-relations-company-presentation/ Deep Dive Presentation: https://seat11a.com/investor-relations-deep-dive/ Financial Results Presentation: https://seat11a.com/investor-relations-financial-results/ ESG Presentation: https://seat11a.com/investor-relations-esg/ T&C This publication is for informational purposes only and does not constitute investment advice. By using this website, you agree to our terms and conditions outlined on www.seat11a.com/legal and www.seat11a.com/imprint.