DEUTZ AG: DEUTZ creates new Green segment

• New growth strategy drives transformation to
  sustainable mobility
• CEO Dr. Frank Hiller: “We are reinventing the
  engine”

COLOGNE/STOCKSTADT,
GERMANY – EQS Newswire – 17 November 2021 – DEUTZ AG is
creating a new reporting structure and introducing the segments ‘Classic’ and
‘Green’.

With effect from January 1, 2022, all activities connected with the
development and production of new non-diesel drives will be assigned to the
Green segment. This includes electric drives, the subsidiary Torqeedo, and the
battery management specialist Futavis. Through the new reporting structure,
DEUTZ is giving much greater visibility to the development of hydrogen-powered
engines and fuel cells. Activities related to the development, production,
sales and service of diesel engines will be combined under the Classic segment.

Dr. Frank Hiller, CEO of DEUTZ: “The new segmentation of our commercial
operations will, above all, provide the capital markets with a more transparent
picture of our work on off-highway technology for a carbon-neutral future. It
is backed by a growth strategy that very clearly sets out our milestones and
activities in the period up to 2031. At the same time, the new strategy leaves
DEUTZ’s employees in no doubt that the Company is fully committed to the
transformation of its product portfolio.”

The activities in the Green segment currently generate around €60 million
per year, equivalent to around 4 percent of DEUTZ’s revenue. The intention is
to increase this proportion to more than 50 percent by 2031, both through
organic growth and through targeted acquisitions and takeovers focused on the
new technologies. DEUTZ aims for the new segment to reach break-even in 2027.

Strategic investments will also be included in the Green segment, for
example the planned investment in Blue World Technologies, a leading
manufacturer of fuel cells.

Up to 2026, investment in the growth strategy for the Green segment will
mainly be funded by the traditional business with diesel engines. Frank Hiller:
“Internal combustion engines will be in demand in our application areas
for many years yet. We are a global leader in agricultural machinery and
construction equipment, and more and more of our customers are showing interest
in long-term partnerships.”

For example, DEUTZ recently announced new alliances with John Deere, SDF and
AGCO that will see DEUTZ either develop or manufacture entire engine series for
these leading players in the world of agricultural machinery. “DEUTZ is
getting greener, there is no doubt about that. The switch to new drives is on
its way in all customer groups. We want to be – and will be – at the forefront
of this transformation. Whether diesel, gas, synthetic fuels, electricity, or
hydrogen, we are reinventing the engine. Today, there are all kinds of
different drive systems, all with the aim of movement. The era of fossil fuels
is coming to an end, but the need for mobility will remain.”

#DEUTZ