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DEUTZ AG Company Presentation | Sustainable Innovation Driving Growth with IR

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DEUTZ AG Company Presentation: Key Takeaways

In this comprehensive investor presentation

Mark Schneider, Head of Investor Relations at DEUTZ AG, elaborates on the company’s strategic direction, operational performance, and future ambitions. DEUTZ AG, a 160-year-old global leader in off-highway engine manufacturing, has continuously driven innovation in diesel, gas, electric, and hydrogen-powered engines. The company’s mission remains consistent: to ensure the world keeps moving by providing cutting-edge engine solutions that span various industries and applications.

Our Mission

DEUTZ AG’s mission is to power the future by creating reliable, sustainable, and technologically advanced engines. With over 5,000 employees and a robust research and development investment of nearly €100 million annually, DEUTZ aims to continue leading the market in off-highway power solutions. Our commitment to sustainability is evident in our development of engines that operate on a variety of fuels, including diesel, e-fuels, biodiesel, and hydrogen, ensuring DEUTZ stays at the forefront of energy transition technologies.

About Us

Founded in 1864, DEUTZ is the oldest independent engine manufacturer in the world. This long-standing history is a testament to our commitment to quality and innovation. Headquartered in Cologne, the company has built a reputation for producing a wide range of engines—from diesel to hydrogen-powered drivetrains—for off-highway applications. DEUTZ generated approximately €2.1 billion in revenue in 2023, with a clear focus on innovation and sustainable growth. Its production and service network spans the globe, ensuring product support worldwide.

Competitive Environment

DEUTZ is currently the fourth-largest non-captive engine manufacturer for off-highway applications globally, with ambitions to rise into the top three by 2030. Mark highlights DEUTZ’s strategy to capture a larger market share by investing in traditional and sustainable drivetrains, ensuring its offerings remain relevant as the market evolves.

DEUTZ Customers

The company’s customer base includes global construction, agriculture, and material handling giants. Notable clients include Volvo Construction, Wacker Neuson, and Fendt. DEUTZ engines are used in diverse applications, from construction machinery to stationary systems, reflecting the company’s broad product range.

Fields of Application

DEUTZ engines power various applications, including construction, material handling, agriculture, and decentralized power supply systems. The engines operate on various fuels, including diesel, e-fuels, biodiesel, and hydrogen, ensuring DEUTZ stays at the forefront of energy transition technologies.

Resilient Margin Performance

Despite cyclical challenges, DEUTZ has demonstrated its resilience and ability to adapt. From 2020’s dip, where margins dropped to -5.8%, DEUTZ expects to close 2024 with an EBIT margin of 4-5%. This is a significant achievement in a downturn year, driven by portfolio adjustments and operational efficiencies. The company’s ability to maintain profitability in tough times highlights its operational robustness and gives confidence in its ability to navigate future challenges.

Opportunities for Profitable Growth

Mark outlines several megatrends driving DEUTZ’s growth, including urbanization, population growth, climate protection, and industry digitization. These trends are creating demand for efficient agricultural machinery, sustainable construction equipment, and decentralized energy solutions—all of which DEUTZ is well-positioned to deliver through its product innovations and global reach.

Looking Ahead: Growth and Size Matter

DEUTZ is committed to growing its revenue from €2.1 billion in 2023 to €4 billion by 2030, all while maintaining a strong focus on sustainability. The company plans to expand its offerings in both traditional and sustainable technologies, while also growing its service business to contribute 25% of total revenue. DEUTZ’s strategy for growth is focused on developing flexible engine portfolios, expanding into high-growth markets like India, and consolidating its position in established sectors.

Strong 2030 Revenue Ambition

By 2030, DEUTZ aims to generate €4 billion in revenue, driven by innovations in alternative drive systems and decentralized energy. The company expects its solutions segment to grow at a 30% CAGR, contributing over €500 million by the decade’s end. Service is expected to grow, contributing significantly to revenue and EBIT margins.

Chapters
  • Our mission:
  • About us
  • DEUTZ in the competitive environment
  • DEUTZ Customers
  • DEUTZ fields of application
  • Our margin performance remains resilient
  • We have clear strategic criteria which define our path forward
  • opportunities for profitable growth
  • Looking ahead we need to continue to grow – size matters
  • Based on our structured “Strategic Dialogue” process
  • Our DUAL+ strategy: Focus Classic
  • Strong 2030 revenue ambition
  • DUAL+ continued: What this means going forward
  • Execution of our strategic partnership with RRPS is a strong proof point
  • Mid 2025 we will be launching our new 3.9L engine
  • Long-term cooperation with TAFE Motors
  • Long-term focus: Dual- and best-cost country sourcing
  • Our DUAL+ strategy: Focus Service
  • Our service business in a nutshell
  • Our DUAL+ strategy: Focus Solutions
  • We have currently two offerings in New Technology
  • Our H2 engine is certified for a next generation of regional trains
  • Our H2 project in Beijing was commissioned in September
  • Energy – our genset business
  • Growth drivers for decentralized electricity supply in North America
  • Blue Star Power Systems is one of the top 10 genset producers in the North American market
  • Blue Star Power Systems has achieved a strong development in recent years and has clear growth prospects
  • How we will lead Blue Star Power Systems
  • We will deploy region-specific strategies to grow the Energy business both organically and inorganically
  • Growth in resilient Service and Solutions – Classic expected to recover
  • Our 2028 mid-term targets
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Mark Schneider
Head of Investor Relations | DEUTZ AG

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Rolf Becker
Investor Relations | DEUTZ AG

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