Orders on hand at around €680 million, more than double the figure as at the end of 2020
Significant improvement in operating profit and free cash flow
Proposed dividend of €0.15 per share
Guidance for 2022 under review
COLOGNE, GERMANY – EQS Newswire – 14 March 2022 – DEUTZ, one of the world’s leading manufacturers of innovative drive systems for off-highway applications, can look back on a successful 2021. The Company achieved its guidance, which it had most recently raised in September 2021.[1] “For DEUTZ, 2021 was a highly successful year from both an operational and a strategic perspective. We increased our revenue by almost 25 percent to €1.62 billion and improved our EBIT margin before exceptional items by around 8 percentage points to 2.3 percent. The book-to-bill ratio stood at 1.24 at the end of the year. At the same time, we made substantial progress with transforming our business to focus more on alternative, green drive systems. Our hydrogen engine is just one example of how DEUTZ is positioning itself in the field of off-highway drive technologies for a sustainable future,” says CEO Dr. Sebastian C. Schulte. Commenting on the current year, he adds: “The supply situation remains difficult, and we anticipate that the supply chain will continue to contribute to the pressure on margins. Moreover, nobody can predict the economic impact of the war between Russia and Ukraine. We are therefore preparing for a challenging year.”
To report even more transparently on its transformation, DEUTZ introduced a new Green segment on January 1, 2022 that will cover all activities connected with the development and production of new non-diesel drives. The new reporting structure will be used for the first time in connection with the results for the first quarter of 2022.
In 2021, DEUTZ also expanded its high-margin service business – a key pillar of its growth strategy – and tailored it even more closely to the requirements of its customers. This included the launch of S-DEUTZ Telematics, the Lifetime Parts Warranty, and DEUTZ Lifecycle Solutions. DEUTZ reached its service revenue target of around €400 million for 2021.
Double-digit percentage increases in new orders, unit sales, and revenue At €2,012.6 million in 2021, DEUTZ’s new orders were up by 52.2 percent compared with 2020, which had been heavily affected by coronavirus. This growth can be explained by the fact that customers were very willing to invest, reflected in double-digit percentage increases across all application segments and regions. The exceptionally strong rise was also attributable to one-off effects of spending brought forward in June and September, which amounted to more than €100 million. This situation came about mainly because of customer orders being brought forward in response both to price adjustments and to longer lead times.
As at December 31, 2021, orders on hand stood at €676.7 million (December 31, 2020: €269.0 million), which indicates continued growth. The proportion of orders on hand attributable to the service business stood at €35.7 million (December 31, 2020: €24.4 million).
With a total of 201,283 engines sold, the DEUTZ Group registered an increase in unit sales of 33.4 percent in the reporting period. The number of DEUTZ engines[2] sold rose by 32.9 percent to 160,882. The DEUTZ subsidiary Torqeedo sold 40,401 electric boat drives, which was 35.1 percent more than in 2020.
Reflecting the growth in unit sales, DEUTZ generated consolidated revenue of €1,617.3 million in 2021. All application segments contributed to this year-on-year growth of 24.8 percent. Service revenue rose by 15.7 percent to €403.1 million in the reporting period.
All regions contributed to the increase in revenue with double-digit percentage growth rates. The EMEA region saw a particularly sharp rise.
Strong improvement in profitability EBIT before exceptional items (operating profit) amounted to €37.2 million in 2021, following an operating loss of €74.7 million in 2020. This improvement was primarily due to the jump in revenue, the related economies of scale, and the increasingly tangible savings resulting from the restructuring and cost-cutting measures that have been initiated. However, operating profit was once again squeezed by the loss reported by DEUTZ subsidiary Torqeedo, which has not yet managed to break even. The EBIT margin before exceptional items made a strong year-on-year improvement from minus 5.8 percent to plus 2.3 percent.
EBIT for 2021 stood at €34.1 million (2020: minus €106.6 million). This figure includes exceptional items of minus €3.1 million. These related to the efficiency program and were the result of the adjustment of the provision for restructuring, which had been recognized for the first time in the previous year. In 2020, restructuring costs of €31.9 million had been recognized as an exceptional item in connection with this program. The EBIT margin came to 2.1 percent (2020: minus 8.2 percent).
Net income amounted to €38.2 million in 2021, following a net loss of €107.6 million reported in 2020. Earnings per share increased from minus €0.89 in 2020 to €0.32 in the reporting year. Adjusted for exceptional items, net income improved to €41.3 million (2020: net loss of €75.7 million) and adjusted earnings per share improved to €0.34 (2020: minus €0.63).
Clear improvement in free cash flow; financial position remains comfortable Cash flow from operating activities more than doubled in 2021 compared with the figure of €44.9 million in 2020, when cash flow had been weakened by the pandemic. The improvement to €93.3 million was primarily attributable to the increased volume of business and the higher level of operating profit. At the same time, careful monitoring enabled working capital to be kept virtually unchanged year on year, despite the growth in the volume of business. As a result of the increase in cash flow from operating activities, free cash flow was also up substantially year on year at €21.6 million, having been at minus €35.8 million in 2020.
Reflecting these changes in cash flow in 2021, net financial debt improved slightly compared with the end of 2020, falling by €4.1 million to €79.7 million as at December 31, 2021.
With an equity ratio of 45.6 percent, which is above the general target figure of greater than 40 percent, the DEUTZ Group’s financial position remains very comfortable. Despite having ended the €150 million credit line that was granted to it with the assistance of Germany’s KfW development bank (known as the COVID-19 tranche), DEUTZ has unused credit lines totaling around €200 million at its disposal.
Dividend of €0.15 per share proposed for 2021 Last year, DEUTZ did not pay its shareholders a dividend for 2020 due to the coronavirus-related accumulated loss. For 2021, however, DEUTZ AG would like its shareholders to reap the benefits of its success once again, and the Board of Management and Supervisory Board are jointly proposing to the Annual General Meeting that €18.1 million of the accumulated income be used to pay a dividend of €0.15 per share. This would give a dividend ratio of 46.9 percent. Under its dividend policy, the Company aims for a ratio of around 30 percent.
Guidance for 2022 due to significant uncertainty under review The geopolitical impact of the war between Russia and Ukraine on the global economy and on the flow of goods around the world is highly uncertain. Fortunately, none of DEUTZ’s direct suppliers are located in these regions. Also our direct business activities in the regions affected by the war account for a relatively small portion of our revenue. But the indirect impact for the DEUTZ business is currently impossible to assess. We therefore have put the guidance as published in our annual report 2021 under review. All new engine business with Russia and Belarus has been discontinued until further notice.
Before the war between Russia and Ukraine broke out, we had assumed that the upturn in the relevant customer industries would be sustained this year. At that time, it was also assumed that global problems with the supply of input materials would continue to weigh on business performance and that supply issues for certain components would persist. Based on these assumptions, we predicted unit sales of 165,000 to 180,000 DEUTZ engines in 2022, which would have resulted in an increase in revenue to between €1.70 billion and €1.85 billion. The EBIT margin before exceptional items would likely have been between 3.5 percent and 5.5 percent. This span reflects not only the aforementioned revenue range but also the expectation that prices for commodities and energy would rise further and that it would not be possible to pass on the additional costs to customers straight away due to the high level of orders on hand. Free cash flow would likely have been an amount in the low to mid-double-digit millions of euros.
Upcoming financial dates April 28, 2022: Annual General Meeting (virtual) May 5, 2022: Quarterly statement for the first quarter of 2022 August 11, 2022: Interim report for the first half of 2022
[1] See the ad hoc disclosure dated September 13, 2021. [2] Excluding electric boat drives from DEUTZ subsidiary Torqeedo. [3] Number of full-time equivalents (FTEs).
Forward-looking statements This press release may contain certain forward-looking statements based on current assumptions and forecasts made by the DEUTZ management team. Various known and unknown risks, uncertainties, and other factors may lead to material differences between the actual results, the financial position, or the performance of the DEUTZ Group and the estimates and assessments set out here. These factors include those that DEUTZ has described in published reports, which are available at www.deutz.com. The Company does not undertake to update these forward-looking statements or to change them to reflect future events or developments.
About DEUTZ AG
DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is one of the world’s leading manufacturers of innovative drive systems. Its core competencies are the development, production, distribution, and servicing of drive solutions in the power range up to 620 kW for off-highway applications. The current portfolio extends from diesel, gas, and hydrogen engines to hybrid and all-electric drives. DEUTZ drives are used in a wide range of applications including construction equipment, agricultural machinery, material handling equipment such as forklift trucks and lifting platforms, commercial vehicles, rail vehicles, and boats used for private or commercial purposes. DEUTZ has around 4,750 employees worldwide and over 800 sales and service partners in more than 130 countries. It generated revenue of around €1.6 billion in 2021. Further information is available at www.deutz.com.
#DEUTZAG
The issuer is solely responsible for the content of this announcement.
Mekong River Leaders Urge Cooperation, Protection when Meeting New MRC CEO.
To better protect Southeast Asia’s largest waterway, the new CEO of the Mekong River Commission (MRC) Secretariat is now making the rounds to hear directly from Member Countries about their priorities – especially, to minimize growing threats to lives and livelihoods.
HONG KONG SAR – Media OutReach – 14 March 2022 –Leading regional sports network SPOTV today announced the launch of mobile app, SPOTV NOW – bringing the world’s biggest and most popular sporting events closer to sports fans in Hong Kong, Singapore, Malaysia and the Philippines.
SPOTV NOW streams, both live and on demand, world-class events shown on the sports network’s regional pay-TV linear channels, SPOTV and SPOTV2.
Sports fans in Hong Kong can catch badminton stars like Lee Cheuk Yiu, Viktor Axelsen, Kento Momota and Tai Tzu Ying and their astonishing shots in the BWF World Tour & Major Events, the ferocity of table tennis pros such as Doo Hoi Kem, Wong Chun Ting, Tomokazu Harimoto and Feng Tianwei at the WTT events, and standout moments of sporting heroes in the MotoGPTM and WorldSBK World Championships, tennis Grand Slams – Wimbledon and US Open Tennis Championships, as well as The Open Championships (Golf Major), among other prestigious events.
Mr Lee Choong Khay (CK), CEO of SPOTV, said,“SPOTV is a leading regional sports network in Asia. We are very excited to bring premium content from some of the world’s most popular sporting events, right to the fingertips of sports fans in Asia. Centred around subscribers, our mobile app, SPOTV NOW, not only allows sports enthusiasts to pick and choose what they like, it also delivers the front-row-seat experience of watching their favourite sporting events, teams and heroes, whenever they want, wherever they are. We aim to delight our subscribers with the electrifying experience of watching a big game and at the same time, provide an avenue for them to relive some of the exhilarating moments in sports with our on-demand features. In the months to come, sports fans will get to watch exclusive content that is only available to SPOTV NOW viewers.”
First launched in South Korea in 2017, SPOTV NOW has risen to become the country’s top sports OTT platform. The popular app was also recently launched in Japan.
CK added, “Sport brings people together. We aim to replicate the success of SPOTV NOW across Asia – by bringing more localised and relevant content to our subscribers in each market, drawing them closer to their unique sports culture, and strengthening the bond among sports fans. In the near future, we will be rolling out SPOTV NOW to Indonesia, followed by Thailand.”
SPOTV NOW can be downloaded from Google Play Store or App Store.
A subsidiary of South Korea-based Eclat Media Group, SPOTV is headquartered in Singapore. Established in October 2021, SPOTV owns two regional pay-TV channels, SPOTV and SPOTV2, which are broadcast across multiple Southeast Asia and select East Asia territories such as Indonesia (MNC Vision, K-Vision, UseeTV, MAXstream), Malaysia (Astro, Unifi TV), the Philippines (Skycable), Singapore (Singtel TV, StarHub TV), Thailand (True Visions), Macau (Macau Cable TV) and Mongolia (Univision).
The two channels broadcast content such as tennis Grand Slam tournaments Wimbledon and US Open, motorsport championships MotoGPTM and WorldSBK, World Table Tennis and Badminton World Federation events, as well as popular Asian sports including the Korean Baseball Organization (KBO) League, Korean Basketball League (KBL), V-League (volleyball) and V.League (Japan) competition.
SPOTV seeks to be an inclusive and dynamic platform that deeply engages the Asian sports fans.
#SPOTV
About ECLAT Media Group
Eclat Media Group is the leader in sports media in South Korea. Formed in 2004, Eclat Media Group services Premier League, UEFA Champions League, LA Liga, Serie A, MLB, NBA, UFC, and other premier global sports properties in South Korea through its seven sports channels under the “SPOTV” name, and South Korea’s first subscription-based OTT platform, “SPOTV NOW.” Additionally, Eclat also publishes the print magazine, Golf Digest Korea, e-newspaper SPOTV NEWS, operates an advertising media rep company, SPOTV Connect, and the PR company, Konnectivity, among other businesses.
SINGAPORE – Media OutReach – 14 March 2022 – Leading supplier of health supplements, Möller’s, has been awarded the Superior Taste Award in 2022 for their cod liver oil and gummy jelly gel fish products. The prestigious award, granted by the 2022 International Taste Institute jury, has recognised the efforts from Möller’s in modernising their cod liver oil production process – which leads to the removal of fishy taste commonly associated with fish oil products while simultaneously tasting great and retaining a high degree of nutrients in the final product.
The award was presented by the International Taste Institute, a global institution holding a jury of established chefs and sommeliers who are responsible for grading various food and beverages according to their taste and quality. According to the International Taste Institute, Möller’s cod liver oil with lemon, tutti frutti (fruit), and apple flavours have been awarded 2 stars for their remarkable taste. Additionally, the natural-flavoured cod liver oil and the orange-flavoured gummy jelly gel fish product were awarded 1 star for their notable taste. The products were analysed and scored following a proper methodology in which a massive panel of independent food and drink professionals taste d the respective products without knowing the origin or the brand name. With the primary purpose of keeping the process neutral and fair, the anonymised products ensure that the chefs and sommeliers are completely objective as they conduct the sensory analysis.
While cod liver oil has been historically known to be a highly nutritious product high in vitamins A and D, along with other essential fatty oils, the downside of what was termed as a ‘fishy taste’ has made it consumable only with a spoonful of sugar to mask the raw taste. As such, Möller’s has developed production and purification methods that now allow for a high quality, pure cod liver oil to be consumed without the need for added sugars. This falls in line with Möller’s objectives of providing excellent natural health supplements to their customers while reducing the need for additives and artificial sugars as much as possible. Möller’s will continue to innovate and enhance their processes to create better products for their global customer base; ideal for those seeking natural supplements online in Singapore.
One of the world’s largest suppliers of cod liver oil products, Möller’s is a trusted supplier of health supplements in the Nordic region dedicating themselves to improving and developing natural, quality supplements. Interested individuals can purchase bottled and capsule cod liver oil at their stores as well as through online e-commerce platforms.
The Toyota Tundra was damaged after hitting another vehicle and fleeing the scene.
Police are on the lookout for a 2017 white Toyota Tundra pickup that made off without paying at a petrol station in Vientiane Capital before being involved in a hit and run incident.
www.deutz.com. 
