#1DEUTZ Company presentation April, 2021 Ⓡ DEUTZ#2Disclaimer Unless stated otherwise, all the figures given in this presentation refer to continuing operations. The details given in this document are based on the information available at the time it was prepared. This presents the risk that actual figures may differ from forward-looking statements. Such discrepancies may be caused by changes in political, economic, or business conditions, decreases in the technological lead of DEUTZ's products, changes in competition, the effects of movements in interest rates or exchange rates, the pricing of parts supplied, and other risks and uncertainties not identified at the time this document was prepared. The forward-looking statements made in this document will not be updated. 2 DEUTZ#3DEUTZ at a glance Independent engine producer focusing on „off-highway" applications Approx. € 1.3 bn sales in 2020 Technology leader,,made in Germany" Active in more than 130 Countries Five manufacturing sites globally HQ in Cologne Around 4.600 employees DEUTZ Diesel, LPG/CNG and alternative fuel powertrains for main „,off-highway" segments Developing broad range of products for e- and H2-mobility 7% R&D ratio in 2020 (R Digital and Al-based applications Partner for the transformation of the off-highway industry DEUTZ Founded 150 years ago#4Agenda Strategy DEUTZ Ⓡ#5Our challenge: a market environment with many moving parts... DEUTZ Emissions CO2 reduction Hybridization Efficiency gains Electrification E-fuels Noise Downsizing cancellation 0 Hydrogen 田 Optimization of LPG/CNG drive solutions Zero-emissions Sustainability & target NOX 'well-to-wheel' view Need for sustainable drive systems, including in off-highway applications#6...meets a highly diversified customer base BKIN Broad customer base with different power requirements 100% ELECTRIC FARE DEUTZ#7Open-minded approach to technology Biodiesel Multi-fuel LPG CNG Є DEUTZ DEUTZ Hydrogen Synthetic fuels Sustainable fuels H 48V Mild hybrid 360V full hybrid Battery-powered drives H Fuel cell Green electricity DEUTZ is tackling the challenges in off-highway applications by ensuring compatibility with different technologies#8Our goal: the optimal technology for each application Freeways, fields, construction sites Operating range / Distance to energy supply Factory sites, cattle sheds Electric powertrains A Hybrid powertrains low Energy demand/ cycle Competitive powertrains for all of our current off-highway markets Piston engines (Diesel, LPG, CNG, e-fuel, H₂) high DEUTZ#9Agenda Growth drivers 9 Ⓡ DEUTZ#10DEUTZ Focus for growth: China Relevant off-highway market¹ Units (millions) Serviceable addressable market, broken down by region¹ 6 5 4.6 4 3 2 1 0 DEUTZ relevant market (19-620kw) 2.5 DEUTZ servicable addressable market (SAM) Americas 15% EMEA 29% Asia-Pacific 56% China 39% Markets relevant to DEUTZ: agriculture, construction, material handling, and stationary equipment 10 1 Source: PSR - Power Systems Research, April 2020.#11Ramp-up of capacity in China on track DEUTZ Hunan (SANY JV) output planning Units (thousands) 250 200 150 CAGR 125% 100 50 DEUTZ Tianjin output planning Units (thousands) 40 Goal 30 20 20 10 10 CAGR 200% DEUTZ Our target for China: approx. €800mn revenue in 20221 2021e 2022e 2023e 2024e 11 2019 2020 2021e 2022e 202x A BEZ SANY 1 The revenue target of approximately €800 million includes the revenue generated by the joint venture with SANY. Under the equity method, this revenue is not recognized in the consolidated financial statements.#12Ongoing expansion of the profitable service business Revenue from the service business € million CAGR +4.6% Our service target: 352.4 348.3 329.9 309.2 287.3 278.4 approx. €400mn revenue in 2021 2015 2016 2017 2018 2019 2020 KEELE SPYOP DEUTZ SERVICE PORTAL DEUTZ ■ New distribution channels and expansion of existing network: expansion of our own service centers, acquisition of DEUTZ Austria, Motorcenter Austria, Pro Motor Servis CZ in 2020 Digital services: diagnostics and interpretation of errors, DEUTZ advanced service tool, digital service and repair checklist ■ New 'analog' service concepts and products: expansion of Xchange, mobile service technicians, servicing and repair of non-DEUTZ engines, parts warranty, E-DEUTZ services 12#13Agenda Numbers DEUTZ Ⓡ 13#14Overview DEUTZ ■ Sharp decline in sales figures and EBIT before exceptional items in 2020 compared with 2019 due to coronavirus ■ Noticeable upward trend in the market - significant improvement in business performance in the final quarter of 2020 compared with previous quarters ■ Successful launch of the Transform for Growth efficiency program - restructuring costs totaling €31.9 million recognized as an exceptional item in 2020 ■ Focused implementation of the growth initiatives despite the coronavirus crisis Expansion of sustainability efforts Improved outlook for 2021 14#15Sales figures for 2020, yoy New orders € million 1,654.3 2019 -20.1% Unit sales Units -28.7% 211,667 20,942 1,322.5 150,928 29,894 2020 Q4 vs Q3: +25.5% 2019 2020 Q4 vs Q3: +22.1% Revenue € million -29.6% 1,840.8 1,295.6 thereof Torqeedo 2019 2020 Q4 vs Q3: +19.2% DEUTZ ☐ Huge fall in new orders due to the coronavirus crisis and the resulting reluctance to invest, and due to adverse effects relating to the advance production of engines Torqeedo's unit sales jumped by 43% compared with 2019, mainly due to ramp-up of smaller trolling motors ■ Orders on hand of €269.0 million as at December 31, 2020 (December 31, 2019: €253.3 million) 15#16Coronavirus-related fall in revenue in all major regions and segments 2020 (2019) DEUTZ Africa and Middle East 4% (3%) €54.8 million +0.7% €1,295.6 million (€1,840.8 million) Asia-Pacific 19% (16%) €243.9 million -17.2% Americas 17% (22%) €222.5 million -45.0% 16 Europe (excl. Germany) 41% (42%) Miscellaneous 8% (6%) €532.8 million €103.3 million -31.4% -2.3% Construction Equipment 29% (29%) €378.5 million -29.3% Stationary Equipment 9% (8%) €114.3 million €1,295.6 million (€1,840.8 million) Material Handling 13% (22%) €172.5 million -26.6% -56.8% Agricultural Machinery 14% (16%) lachinery 1 €178.7 million Germany 19% (17%) €241.6 million -39.1% -22.2% Service 27% (19%) Disproportionately sharp decrease in the Americas due to a weak Material Handling application segment €348.3 million -1.2%#17R&D: spending and capital expenditure R&D spending (after deducting grants) € million Capital expenditure (after deducting grants)² € million 8.1% 5.9% 6.3% 5.2% -3.6% -15.0% 108.2 104.3 95.8 10.4 81.4 2019 2020 R&D ratio¹ 2019 2020 32.4 thereof additions as a result of leases³ ■ Disproportionately strong rise in the R&D ratio caused by sharp fall in revenue ■ Reduction in capital expenditure as a result of cost-cutting measures being implemented 17 DEUTZ 1 Ratio of net R&D expenditure (after deducting grants) to consolidated revenue. 2 After deducting grants; capital expenditure on property, plant, and equipment (including right-of-use assets for leases) and intangible assets, including capitalization of R&D. ³ Right-of-use assets for leases under IFRS 16.#18Cash flow from operating activities & working capital Cash flow from operating activities € million Working capital € million 115.6 2019 44.9 2020 21.8% 17.4% 293.2 235.0 Dec. 31, 2019 Dec. 31, 2020 Working capital ratio (average)1 ■ Decrease in cash flow from operating activities caused by the sharp decline in operating profit as a result of coronavirus ◉ Significant reduction in working capital compared with the prior year, mainly due to the early adjustment of production and procurement activities and a further intensification of working capital management in response to the fall in demand resulting from coronavirus ■ Increase in the working capital ratio due to the sharp fall in revenue 18 1 Average working capital at the four quarterly reporting dates divided by revenue for the previous twelve months. DEUTZ#19Free cash flow and net financial position Free cash flow1 € million -36.6 -35.8 2019 2020 Net financial position € million -15.2 -83.8 Dec. 31, 2019 Dec. 31, 2020 DEUTZ ◉ Proactive management of capital expenditure and working capital clearly helped to offset the coronavirus-related decrease in cash flow from operating activities; reduction in investing activities compared with 2019 ■ In Q4 2020, free cash flow rose sharply to €43.0 million because of the higher volume of business, optimization of working capital, and the first positive effects from the efficiency program Deterioration in net financial position owing to the impact of the coronavirus crisis and a rise in lease liabilities to €58.0 million (December 31, 2019: €41.9 million)² 19 1 Cash flow from operating activities and from investing activities less interest expense. 2 Lease liabilities under IFRS 16.#20Sufficient medium- and long-term funding options Equity ratio € million € million 1,301.2 50.1% 1,180.5 45.3% 652.4 535.2 Dec. 31, 2019 Dec. 31, 2020 Total assets Equity Equity ratio 20 20 Funding Long-term bank loans and syndicated credit lines 75.6 150 up to 1 year 13.6 160 1 to 5 years Repayment profile Term of credit lines Syndicated credit lines totaling €310 million €150 million maturing in November 2021, with an extension option (amount drawn down as at December 31, 2020: €0 million) - €160 million maturing in June 2024 (amount drawn down as at December 31, 2020: €65 million) DEUTZ#21Agenda Outlook DEUTZ Ⓡ 21 24#22Group guidance for 2021 Unit sales Revenue EBIT margin (before exceptional items) Free cash flow Actual 2020 121,034 engines1 Guidance for 2021 at least 130,000 engines¹ €1,295.6 million -5.8% minus €35.8 million at least €1.40 billion to at least break even negative low- to mid-double-digit million euro amount² Difficulties with the supply of some components will have an adverse impact in the first half of the year and possibly longer Positive exceptional item from payment of the final installment of the purchase price for the sale of the Cologne-Deutz site, which is expected to be made in 20212 DEUTZ 22 1 Excluding electric motors of DEUTZ subsidiary Torqeedo. 2 Depending on the timing of payment of the final installment of the purchase price, the amount and date of which depend on when the development plan for the site is formally approved by the City of Cologne.#23Medium-term targets for 2023/2024 ■ ◉ ■ Technology-neutral approach to development of the product portfolio and expansion of the high-margin service business Implementation of regional growth initiatives Systematic implementation of the Transform for Growth efficiency program, with targeted gross cost savings of €100 million p.a. from the end of 2022 DEUTZ Our targets for 2023/2024: > €2 billion revenue 23 - Adjustment of staff costs and operating costs - Optimization of the global production network Reduction of complexity DEUTZ has taken the steps that are needed for sustained profitable growth " 1 7-8% EBIT margin before exceptional items#24224 Ⓡ DEUTZ Thank you for your attention!#25Financial calendar and contact details Financial calendar Annual General Meeting 2021 April 29 (virtual) Quarterly statement for Q1 2021 May 6 Interim report for H1 2021 August 12 Quarterly statement for Q3 2021 November 10 Contact Christian Ludwig, CFA SVP Communications & Investor Relations +49 (0)221 822 3600 [email protected] 25 DEUTZ online annual report for 2020 Including a KPI tool and interactive features: https://annualreport.deutz.com/2020 Growth-Innovation-Sustainability NOW DEUTZ AG Annual Report 2020 Follow us: DEUTZ in f Ⓡ DEUTZ