- Successful year operationally: DEUTZ on course for future growth
- Business in China is buoyant: €800 million revenue planned for 2022 in China
- Payment of dividend for 2019 suspended
At today’s virtual Annual General Meeting, Dr. Frank Hiller, Chief Executive Officer of DEUTZ AG, looked back over a year that had been very successful, both strategically and operationally. Important markers were laid down in 2019, setting the course for future growth. Referring to the challenges posed by the coronavirus pandemic, he explained that every possible effort was being made to lead DEUTZ safely and successfully through these exceptional times. One of the measures DEUTZ had taken in this context was to define its ‘Vision of Success 2020’, a set of guidelines intended to shape the Company’s success in the current financial year.
“Part of our vision of success is to continue making the capital expenditure necessary to secure the long-term future of our business,” said Hiller. “Because one thing is clear: In order to maintain our Company’s forward momentum, it is essential that we continue the growth projects we have already begun and keep DEUTZ on course for success. Our China strategy is evidence that we are succeeding in this. The first few months of the current financial year have been profitable in this region and we actually expect the volume of unit sales to double or triple for 2020 as a whole. Because our China business is doing so well, we have increased our revenue target for this region from €500 million to over €800 million.”
DEUTZ also launched its Transform for Growth efficiency program at the start of the year. The aim of the program is to achieve a permanent and substantial reduction in costs and to make the Company’s processes and the organization as a whole fit for the future. Furthermore, the Board of Management is waiving its one-year variable remuneration for 2020, the Supervisory Board is waiving part of its fixed remuneration, and the senior management team are forgoing a substantial part of their variable remuneration for this year. The Board of Management, Supervisory Board, and senior management team are seeking to lead by example with this action, particularly in view of the salary cuts that many DEUTZ employees have endured as a result of short-time working.
The shareholders of DEUTZ AG voted in favor of the majority of the agenda items at today’s virtual Annual General Meeting. A majority of the registered shareholders agreed to the suspension of the dividend for 2019. The suspension of the dividend payment was proposed by the Board of Management and Supervisory Board in order to protect the Group’s liquidity, because of the financial impact of the coronavirus crisis on the Group’s business performance. The Company will also push ahead with its important growth projects – E-DEUTZ, the China strategy, and the expansion of the service business. However, the AGM did not agree to the agenda item concerning executive pay. This was to have been the final vote on the current system of executive pay, which is now under review. A new remuneration system will be put to the vote at the next Annual General Meeting in 2021.
A total of 49.91 percent of the Company’s registered capital was represented at this year’s virtual Annual General Meeting.
Detailed information about the Annual General Meeting and the results of the voting on the individual agenda items are available on the DEUTZ website at www.deutz.com/en/investor-relations/annual-general-meeting/2020/.
 It should be borne in mind that DEUTZ’s stake in the joint venture with SANY is consolidated using the equity method, which means that it will not increase consolidated revenue, but is expected to make a positive contribution to EBIT.