• Orders on hand rise to around €830 million
• Revenue increases by 19 percent to almost €1.4 billion
• Adjusted EBIT margin improves to 4.7 percent

COLOGNE, GERMANY - EQS Newswire - 9 November 2022 - Following a successful first half of the year, DEUTZ continued to generate growth and recorded double-digit increases in unit sales and revenue in the nine-month period. The war in Ukraine did not have a material adverse effect on business performance. However, as for other companies, the impact of the war on energy and raw material prices and on the global flow of goods around the world is very tangible for DEUTZ. "Exceptionally high price increases across the board, combined with disruptions to supply chains, are taking their toll on the economy as a whole. Nonetheless, we raised our adjusted EBIT margin by 2.1 percentage points to 4.7 percent. This is proof positive that the performance initiatives that we have launched and our greater focus on maintaining cost discipline are increasingly paying off. This uptrend is encouraging but offers no room for complacency because we still have a long way to go before we achieve our targeted profitability level," says CEO Dr. Sebastian C. Schulte. DEUTZ defined a range of measures under its Powering Progress strategy program that are aimed at facilitating the Company's transition to alternative drive systems and new business models and boosting its commercial performance. They include passing on higher costs to customers in the short term through multiple rounds of price rises. This will increasingly mitigate the impact of these higher costs. Looking to the future, Schulte adds: "Our orders on hand stood at the very high level of approximately €830 million at the end of September. That provides a stable starting position for the coming months. Market demand remains particularly strong for engines with a capacity of less than four liters. At the same time, our book-to-bill ratio of 0.95 in the third quarter indicates that market growth is gradually slowing down. However, we have set a course that will make DEUTZ more resilient in periods of economic weakness." As well as delivering a positive operating performance and successfully launching its first performance initiatives, DEUTZ made further progress with implementing its hydrogen strategy and joined the HyCET (Hydrogen Combustion Engine Trucks) research project consortium. HyCET aims to demonstrate the sustainability potential of trucks with hydrogen combustion engines in transportation logistics. As part of the project, two 18-tonne trucks will be developed and fitted with DEUTZ TCG 7.8 H2 hydrogen engines. The trucks will then be put through their paces by using them in the regular logistics operations of the BMW Group and DEUTZ. The four-year research project has a total investment volume of €19.5 million, of which €11.3 million will be funded by the German Federal Ministry for Digital and Transport (BMDV). Furthermore, the Supervisory Board of DEUTZ AG has completed the reorganization of the Board of Management: Dr.-Ing. Petra Mayer took up her post as the new Chief Operating Officer (COO) at the start of November, while Timo Krutoff will join the Board of Management as the new CFO and Labor Director on December 1. New orders close to the prior-year level, sharp rise in unit sales and revenue In the first three quarters of 2022, new orders received by the DEUTZ Group amounted to €1,519.7 million. This was around the same high level of €1,514.0 million achieved in the prior-year period, which had been boosted by one-off effects of spending brought forward in an amount of more than €100 million. The regional situation was mixed, with new orders rising markedly in the Americas and Asia-Pacific regions but declining slightly in the EMEA region during the reporting period. The application segments also presented a disparate picture. Whereas Material Handling, Agricultural Machinery, Stationary Equipment, and the service business generated increases in new orders (with some of them reporting double-digit percentage growth), there were significant year-on-year decreases for Construction Equipment and Miscellaneous. Orders on hand continued to climb, advancing by 13.4 percent to reach a substantial €828.8 million as at September 30, 2022 (September 30, 2021: €616.4 million). This points to a stable order situation in the months ahead. Of that total, orders on hand attributable to the service business rose by 62.7 percent to €53.2 million (September 30, 2021: €32.7 million). With a total of 169,352 units sold, the DEUTZ Group registered an increase in unit sales of 16.5 percent in the reporting period. Within this total, the number of DEUTZ engines[1] sold rose by 12.6 percent to 130,875. The DEUTZ subsidiary Torqeedo sold 38,477 electric boat drives, which was 32.3 percent more than in the prior-year period. The uptrend in unit sales...