RCS - Deutz AG - ‘POWERING PROGRESS’ strategy program

Deutz AGAnnouncement

19/01/2023 12:00

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RNS Number : 2833N  Deutz AG  19 January 2023

 DEUTZ AG / Key word(s): Miscellaneous

DEUTZ AG: 'POWERING PROGRESS' strategy program: DEUTZ enginges will continue
 to keep the world moving

19.01.2023 / 11:00 CET/CEST

The issuer is solely responsible for the content of this announcement.

·      Planned investment of more than €100 million in technologies of
 the future

 ·      Ambition to play an active role in market consolidation

 ·      DEUTZ to be carbon-neutral by 2050

 DEUTZ continues to pursue its growth strategy with a clear framework for
 further business expansion. Through its Powering Progress strategy program,
 DEUTZ is actively engaging with the challenges of the shift to greener
 transportation and responding to the key market requirements of taking the
 internal combustion engine forward and developing new drive technologies. To
 achieve additional growth and greater profitability, DEUTZ has adopted the
 Dual+ strategy, which includes a new zero-emission product ecosystem alongside
 its core business in optimized internal combustion engines. Both segments will
 be supported through the global expansion of the high-margin service business.

 The long-term goal of the restructured management team led by CEO Dr.
 Sebastian C. Schulte is to permanently establish DEUTZ among the top three
 independent drive manufacturers and to offer a fully carbon-neutral product
 and technology portfolio by no later than 2050.

 Dr. Sebastian C. Schulte: "We want our engines to keep the world moving in the
 future, too. The industry sectors that make up our customer base are in the
 middle of a fundamental shift toward greater carbon neutrality. Transforming
 transportation is a huge task, but also a business opportunity for us. Through
 our Powering Progress strategy program, we aim to make the most of such
 opportunities, continue to grow profitably, and ensure that our business is
 carbon-neutral along the entire process chain by 2050."

 DEUTZ CLASSIC: Optimized, highly efficient combustion engine technology
 provides a strong foundation

 DEUTZ firmly believes that the heavy-duty sector and agriculture will continue
 to need clean and efficient internal combustion engines to ensure a seamless
 transition to the technologies of the future. That is why the Classic segment
 will continue to underpin corporate growth at DEUTZ. The expectation is that a
 significant uptick in performance, for example through better utilization of
 existing capacities and an optimized product portfolio, will enable an
 increase in engine production to over 200,000 units a year and a marked rise
 in profitability. To this end DEUTZ is also actively looking for M&A
 opportunities in a consolidating market.

 DEUTZ GREEN: A carbon-neutral product ecosystem based on innovative strength,
 investment, and a technology-neutral approach

 DEUTZ engines power machines that are, at present, responsible for high levels
 of carbon emissions. There is potential for improvement, which the Company
 aims to unlock as it creates a carbon-neutral product portfolio. DEUTZ is
 channeling its innovative strength and almost

160 years of engine development experience into its Green segment, based on an
 approach that is fundamentally technology-neutral. This means improving the
 carbon footprint of internal combustion technology, for example through the
 use of hydrogen or synthetic fuels and developing alternative drive systems
 such as electric drives. To reflect the changing demands on the infrastructure
 that is required to keep an engine running, DEUTZ intends to extend its
 service offering across the entire product ecosystem. The aim is to harness
 new value chains, for example, when it comes to charging electric machines or
 supplying the fuel for hydrogen engines. Over the next three years, DEUTZ
 plans to invest well over €100 million in the Green segment.

 Expansion of the service business - The benefits of the Dual+ strategy

 Around the world, DEUTZ engines are in operation for around ten years on
 average in some of the most unforgiving conditions. The aim is to make more of
 the inherent potential in service and aftersales going forward, and DEUTZ is
 supporting the Classic and Green segments through the global expansion of its
 profitable service business. This includes the enlargement of regional sites,
 the repair and maintenance of third-party engines, and the expansion of the
 service business through acquisitions and strategic partnerships. The
 commercial goal of the campaign is to grow the service business's share of
 revenue to over €500 million in the coming years while maintaining
 profitability.

 Beyond optimizing internal combustion engine technology and establishing a
 future-proof product and technology portfolio, CEO Dr. Sebastian C. Schulte
 believes the strategy program also offers opportunities for growth and change
 within DEUTZ: "Our strategy program is aimed at opening up new growth
 opportunities and gaining market share. We have to change as an organization
 if we want to achieve this. Adopting an entrepreneurial mindset will need to
 come as naturally as ensuring that our engines are as close to perfection as
 they can possibly be."

 For further information on this press release, please contact:

Christian Ludwig

Senior Vice President Communications & Investor Relations

Tel: +49 (0)221 822 3600

Email: Christian.Ludwig@deutz.com (mailto:Christian.Ludwig@deutz.com)

 

 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
 (http://www.deutz.com) .

19.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
 - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
 Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

 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
(http://www.deutz.com) .

 

 

19.01.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
- a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

 Language:     English
 Company:      DEUTZ AG
               Ottostraße 1
               51149 Köln (Porz-Eil)
               Germany
 Phone:        +49 (0)221 822 0
 Fax:          +49 (0)221 822 3525
 E-mail:       ir@deutz.com
 Internet:     www.deutz.com
 ISIN:         DE0006305006
 WKN:          630500
 Indices:      SDAX
 Listed:       Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated
               Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate
               Exchange
 EQS News ID:  1538567

 

 End of News  EQS News Service

1538567  19.01.2023 CET/CEST

 

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