DEUTZ AG Elevator Pitch: Key Takeaways
In this comprehensive investor presentation, Mark Schneider, the Head of Investor Relations at DEUTZ AG, elaborates on the company's strategic vision and operational performance as of October 2024. DEUTZ AG, one of the oldest independent engine manufacturers globally, is focused on driving technological advancements for off-highway applications. Established over 160 years ago, the company continues innovating, concentrating on traditional and sustainable engine technologies to ensure the world "keeps moving."
Mission
DEUTZ aims to provide the best off-highway engine solutions, leveraging both conventional and alternative fuel technologies. With approximately €100 million invested annually in research and development, the company reinforces its position in the engine manufacturing space.
About DEUTZ
Founded in 1864 and headquartered in Cologne, DEUTZ operates globally with over 5,000 employees. Its product portfolio includes diesel, gas engines, and electric and hydrogen-powered systems, serving various off-highway industries. In 2023, DEUTZ posted revenues of €2.1 billion. The company remains a leader in traditional combustion engines while investing in the future of alternative powertrain solutions.
Competitive Environment
Driven by technological advancements and market share expansion, theDEUTZ ranks fourth in the global off-highway engine manufacturing sector, competing with Cummins and Yanmar. The company's strategic goal is to secure a top-three position by 2030.
Customer Base
in industries such as. KeyDEUTZ serves Original Equipment Manufacturers (OEMs) across industries like construction, material handling, and agriculture, with key clients including Volvo Construction, Wacker Neuson, and Fendt.
Fields of Application
DEUTZ engines are used in construction, material handling, agriculture, and decentralized energy supply. They run on diverse fuel types, such as diesel, CNG, LPG, electric, and hydrogen, highlighting DEUTZ's adaptability and commitment to providing flexible engine solutions.
Margin Performance and Resilience
Despite market cycles, DEUTZ has improved its margins, expecting a 4-5% margin for 2024, compared to a low of 2% in 2014. This improvement reflects DEUTZ's strategic cost controls and focus on high-margin sectors like decentralized energy and alternative drivetrains.
Growth Opportunities
DEUTZ is positioned to benefit from global trends like urbanization, climate protection, and digitization. Growing demand for agricultural machinery, infrastructure development, and localizing supply chains further enhance its growth potential.
Future Growth Plans
, sustainableBy 2025, DEUTZ aims to reach €2.4 billion in revenue, with a target of €4 billion by 2030. Traditional combustion engines, sustainable technologies like hydrogen and electric drivetrains, and an expanded service business will drive growth.
2030 Revenue Ambition
DEUTZ expects substantial revenue growth through organic expansion and strategic acquisitions. Decentralized energy and alternative drivetrains are projected to grow at a 30% CAGR, contributing over €500 million by 2030. The service business is expected to grow in parallel, accounting for 25% of revenue, while the classic engine business will grow but represent a smaller portion of total revenue.
▶️ Other videos:
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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/
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