Opportunities report

In the fast-paced, dynamic markets in which the DEUTZ Group operates, there are, in addition to the aforementioned risk factors that can negatively impact on the attainment of the business objectives, also opportunities that can have a positive effect on the business objectives of the Group for 2018 and beyond. Identifying and harnessing these opportunities is the responsibility of the individual operating segments of the Group. Unlike risks, opportunities are not collated and assessed centrally.

Unless otherwise stated, the opportunities described below refer to 2018 and relate to the DCE and DCS segments.

Economic situation in relevant markets

Developments in the global economy have a major effect on the financial position and financial performance of the DEUTZ Group. If our expectations regarding the macroeconomic situation in our most important markets of Europe, the USA and Asia and regarding the propensity to invest in our most important end markets (construction equipment, material handling and agricultural machinery) are exceeded, we may perform significantly better than we predicted in these regions/application segments.

Research and development

Increasingly stringent emissions standards and general technological progress are placing huge demands on our entire industry. We are one of the innovation leaders and have a very strong competitive position thanks to our proven expertise, our many years of experience and our efficient processes in the research and development of innovative drive systems. We will continue to reinforce our strong competitive position by developing gas engines with a capacity of up to 4 litres, expanding our portfolio of products with a capacity of over 4 litres and developing hybrid and all-electric drives.

New trends

Diesel technology is currently the subject of much debate. We firmly believe that diesel technology will continue to be the dominant type of drive in off-highway applications for a long while yet. However, the discussion is making potential customers who, until now, have invested in their own diesel development work, more willing to collaborate with us instead. This creates a tremendous opportunity for us. Although we continue to have faith in diesel, we are also investing in other innovative technologies and the debate about diesel is opening up good opportunities to pursue new and innovative approaches – which is what our E-DEUTZ strategy is all about. This includes the possibility of tapping into new markets and customer groups by offering innovative solutions on a much bigger scale than we expect in the medium term.

Torqeedo

The company is the global market leader for electric drives for boats and, in recent years, has seen its revenue increase at rates of between 30 and 40 per cent. As well as contributing its expertise to the E-DEUTZ strategy, Torqeedo aims to continue generating substantial growth in the marine business under its own brand in the years ahead. The company is not only strategically important to the DEUTZ Group but could also have a significant effect on the financial position and financial performance of the DEUTZ Group as a whole and on the Other segment, to which Torqeedo is assigned.

Services and digitalisation

We intend to significantly expand our high-margin service business. Potential for growth may stem from offering new service products, broadening our service network, acquiring dealers and having a very good understanding of price elasticities. Opportunities are also presented by new sales channels, such as online shops, and digitalisation. Our DEUTZ Connect App, which we brought out in 2017 and will continue to add to, gives users access to engine diagnostics. This creates greater customer loyalty and satisfaction and has the potential to increase efficiency.