DEUTZ AG

Investor Presentation • Jul 19, 2003

DEUTZ reports positive results for 2002 DEUTZ reports positive results for 2002

2002 Annual Accounts 2002 Annual Accounts – Press Conference, 31 Press Conference, 31st March 2003 March 2003

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DEUTZ reports positive results for 2002

• 1. Main key figures now show positive trends
• 1. Re-Launch programme successful again in second year
• 1. Sales in units increased, sales in value basically stable
• 1. Company returns a profit
• 1. Cash flow substantially improved
• 1. Debt systematically reduced
• 1. Balance sheet total reduced through strict Asset Management
• 1. Numbers employed further reduced
• 1. DEUTZ in Prime Standard DEUTZ shares in SDAX
• 1. Prospects for 2003: further profit improvement.

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Main key figures now show positive trends

f f G K i D E U T Z t l e y g u r e s o r r o u p a a g a n c e		2 0 0 2	2 0 0 1	C h a n g
N d e w o r e r s	€ i l l i m o n	1, 1 3 8. 8	1, 1 3 3. 9	4.
S l a e s	i t u n s	1 5 4, 0 3 2	1 6, 6 4 4 5	3 8 7,
S l a e s	€ i l l i m o n	1, 1 6 0. 9	1, 1 8 4. 9	2 4. -
f E i b i t t, t d i t i d a r n n g s e o r e n e r e s a x, e p r e c a o n, a n ( ) t i t i E B I T D A a m o r s a o n	€ i l l i m o n	1 0 3. 0	8 9. 1	1 3.
O i f i ( E B I T ) t t p e r a n g p r o	€ i l l i m o n	4 1. 0	2 7. 9	1 3.
I t t t n e r e s e p e n s e, n e x	€ i l l i m o n	3 6. 6 -	4 1. 6 -	5.
P f i / l d i i i i t t t r o o s s o n o r n a r y a c v e s	€ i l l i m o n	4. 4	1 3. 7 -	1 8.
P f i / l f h t t r o o s s o r e e a r y	€ i l l i m o n	2. 0	3 1. 8 -	3 3.
t E l ( f 3 1 D b ) s m p o y e e s a s o e c e m e r		4 0 5. 7	9 9 5. 7	0 5 -

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Re-Launch programme successful again in second year

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Re-Launch programme successful again in second year

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N d l i i t d l e o r e r s, s a e s n n s a n a e w u v u		2 0 0 2	2 0 0 1	C h a n g e
N d f i t e w o r e r s o r c o m p a c e n g n e s	€ i l l i m o n	8 0 8 7.	7 4 2. 3	6 5. 5
f N d d i i d e w o r e r s o r m e u m -s z e d l i a n a r g e e n g n e s	€ i l l i m o n	3 3 1. 0	3 9 1. 6	6 0. 6 -
T l d t o a n e w o r e r s	€ i l l. m	1, 1 3 8. 8	1, 1 3 3. 9	4. 9
S f l t i a e s o c o m p a c e n g n e s	i t n s u	1 5 3, 2 8 5	1 4 5, 5 3 8	7, 7 4 7
S l f d i i d d l i a e s o m e u m -s z e a n a r g e e n g n e s	i t u n s	4 7 7	1, 1 0 7	3 6 0 -
T l l t o a s a e s	i t u n s	1 4, 0 3 2 5	1 4 6, 6 4 5	7, 3 8 7
S l f i t a e s o c o m p a c e n g n e s	€ i l l i m o n	8 1 0 5.	4 6. 1 7	6 8. 9
S l f d i i d d l i a e s o m e m -s e a n a r g e e n g n e s u z	€ i l l i m o n	3 4 5. 9	4 3 8. 8	9 2. 9 -
T t l l o a s a e s	€ i l l. m	1, 1 6 0. 9	1, 1 8 4. 9	2 4. 0 - ,

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Company returns a profit

& G ( € ) P L, D E U T Z i i l l i r o u p n m o n	2 0 0 2	2 0 0 1	C h a n g e
S l a e s	1, 1 6 0. 9	1, 1 8 4, 9	2 4, 0 -
C f h i i i h d d d k i a n g e n n s e g o o s a n o r n p r o c e s s w	3. 8 -	2 5. 6 -	2 1. 8
O k i t l i d w n w o r c a p a s e	6, 0	7. 0	1. 0 -
T t l t t o a o u p u	1, 1 6 3. 1	1, 1 6 6. 3	3. 2 -
O h i i t t e r o p e r a n g n c o m e	6 1 5.	1. 0 7	9 5. -
C f t t i l o s o m a e r a	6 2 6. 5 -	6 2 5. 2 -	1. 3 -
P l e r s o n n e e x p e n s e s	2 9 1. 6 -	3 0 6. 1 -	1 4. 5
D i i t e p r e c a o n	6 2. 0 -	6 1. 2 -	0. 8 -
O h i t t e r o p e r a n g e x p e n s e s	2 0 9. 2 -	2 1 0. 7 -	1. 5
I f i t t i t h i n c o m e r o m n e s m e n s n o e r c o m p a n e s v	2. 1	6. 2 -	8. 3
E B I T	4 1. 0	2 7. 9	1 3. 1
I t t t n e r e s e x p e n s e, n e	3 6. 6 -	4 1. 6 -	0 5.
P f i / l d i i i i t t t r o o s s o n o r n a r y a c v e s	4. 4	1 3. 7 -	1 8. 1
E t d i i / ( ), t r a o r n a r n c o m e e p e n s e n e x y x -	-	1 6. 9 -	1 6. 9
T a x e s	2. 4 -	1. 2 -	1. 2 -
f / f P i t l t h r o o s s o r e y e a r	2. 0	3 1. 8 -	3 3. 8

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Cash flow substantially improved

C h f l D E U T Z G ( i € i l l i ) t t t, a s o w s a e m e n r o u p n m o n	2 0 0 2	2 0 0 1
f / f P i t l t h r o o s s o r e y e a r	2. 0	3 1. 8 -
f f D i t i d d l t e p r e c a o n a n p r o c e e s r o m s a e o a s s e s	6 2. 9	4 4 7.
C h i i i i a n g e s n p e n s o n p r o v s o n s	6. 9 -	3. 5 -
C h f l a s o w	8. 0 5	1 2. 1
C h i k i i l t a n g e n w o r n g c a p a	1. 5 -	3 3. 3
C h f l f l i i i t t a s o w r o m n o r m a a c v e s	6. 5 5	4 5. 4
C h f l f i i i i t t t t a s o w r o m n v e s m e n a c v e s	1 8. 8 -	1 2 8. 2 -
C h f l b f f i i a s o w e o r e n a n c n g	3 7. 7	8 2. 8 -
C f f f h l i i l t i i t i a s o w r o m n a n c a a c v e s	5 0. 4 -	9 6. 1
C f h i l i i d d a n g e n q u u n s	1 2. 7 -	1 3. 3

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Cash flow substantially improved

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Debt systematically reduced

f G N t i i l d b t D E U T Z e n a n c a e r o p u ( € ) i i l l i n m o n	2 0 0 2	2 0 0 1	C h a n g e
A d d i i i i t t t t t t m o n s o e o c r e n s o n s u w u	3 2 1. 3	3 7 1. 7	5 0. 4 -
L i i d t q u a s s e s	1 9. 3	3 2. 0	1 2. 7 -
f N t i i l d b t e n a n c a e	3 0 2. 0	3 3 9. 7	3 7. 7 -

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Balance sheet total reduced through strict Asset Management

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Balance sheet total reduced through strict Asset Management

t G ( € f ) A t D E U T Z i i l l i 3 1 D b s s s e s, r o p n m o n, a s o e c e m e r u	2 0 0 2	2 0 0 1	C h a n g e
B i i u s n e s s e x p a n s o n e x p e n s e s	2 0. 6	1 1 5.	5. 5
T i b l t a n g e a s s e s	4 4 0. 3	4 8 4. 6	4 4. 3 -
F i i l t n a n c a a s s e s	6. 5 5	3 6. 2	2 0. 3
F i d t e a s s e s x	4 9 6. 8	5 2 0. 8	2 4. 0 -
I i t n v e n o r e s	2 3. 5 7	2 7 1. 4	1 7. 7 -
T d i b l r a e r e c e a e s v	1 8 9. 1	2 1 1. 1	2 2. 0 -
A i b l f f f i l i d i t t c c o u n s r e c e v a e r o m a a e c o m p a n e s	2 0. 7	0. 9 5	3 0. 2 -
O h d i d d d f d h t t e r a s s e s a n p r e p a e p e n s e s a n e e r r e c a r g e s x	4 8. 4	4 0. 9	7. 5
L i i d t q u a s s e s	1 9. 3	3 2. 0	1 2. 7 -
C t t u r r e n a s s e s	3 1. 2 5	6 0 6. 3	7 5. 1 -
B l h t t t l a a n c e s e e o a	1, 0 4 8. 6	1, 1 4 2. 2	9 3. 6 -

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Balance sheet total reduced through strict Asset Management

S G ( € t k h l d ' i t d l i b i l i t i D E U T Z i i l l i o c o e r s e q u y a n a e s, r o u p n m o n,
t f ) 3 1 D b s a s o e c e m e r	2 0 0 2	2 0 0 1	C h a n g e
S k h l d ' i t t o c o e r s e q u y	9 0 5.	9 3. 0	2. 0
C t i b l t i i t i i h t o n e r e p a r c p a o n r g s v	2 5. 6	2 5. 6	-
P i i f i r o s o n s o r p e n s o n s v	2 9 0. 8	3 0 0. 9	1 0. 1 -
O t h i i e r p r o v s o n s	1 6 5. 4	1 8 7. 5	2 2. 1 -
P i i r o v s o n s	4 6. 2 5	4 8 8. 4	3 2. 2 -
A t d t d i t i t i t t i m o u n s o w e o c r e n s u o n s	3 2 1. 3	3 7 1. 7	5 0. 4 -
T d b l r a e p a y a e	1. 9 7	8 2. 8	1 0. 9 -
f f A t b l t i l i t d i c c o u n s p a y a e o a a e c o m p a n e s	4 7. 8	2 9. 2	1 8. 6
O h l i b i l i i d d f d i t t e r a e s a n e e r r e n c o m e	3 0. 8	1. 5 5	2 0. 7 -
L i b i l i i t a e s	4 7 1. 8	5 3 5. 2	6 3. 4 -
B l h t t t l a a n c e s e e o a	1, 0 4 8. 6	1, 1 4 2. 2	9 3. 6 -

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Numbers employed further reduced

G N b l d, D E U T Z u m e r s e m p o y e r o u p t ( f 3 1 D b ) s a s o e c e m e r	2 0 0 2	2 0 0 1	C h a n g e
C l o o g n e	2, 5 4 2	2, 8 1 9	2 7 7 -
M h i a n n e m	9 2 6	9 4 5	2 8 -
U l m	3 7 4	3 7 0	4
O h l i t t e r o c a o n s	4 8 8	4 1 5	3 5 -
T l i G t o a n e r m a n y	4, 3 3 0	4, 6 8 4	3 5 4 -
f T t l i o a o r e g n	1, 1 4 0	1, 2 9 5	1 5 5 -
T l b l d t o a n u m e r s e m p o y e	4 0 5, 7	5, 9 7 9	5 0 9 -

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DEUTZ in Prime Standard - DEUTZ shares in SDAX

K f i f D E U T Z h e y g u r e s o r s a r e s		2 0 0 2	2 0 0 1	2, 4 0	D E U T Z A G
Y 's h i h e a r g	€	2. 9 4	3. 8 0	2, 0 0		4 7 0 0
Y 's l e a r o w	€	1. 4 1	1. 6 4
Y d i e a r- e n p r c e	€	1. 7 4	1. 6 7	1, 6 0		4 2 0 0
S h h l d i a r e o n g s :				1, 2 0
G ( ) D t h B k A i d i t e s c e a n n r e c u	%	2 6	2 6	0, 8 0	M D A X	3 7 0 0
V l A B o v o	%	1 0	1 0
F f l t r e e o a	%	6 4	6 4	0, 4 0	T d i r e n n	3 2 0 0
S k h i l i i t t t o c e c a n g e c a p a s a o n x	€ i l l. m	1 1 1. 9	1 0 7. 4	0, 0 0	D E U T Z h i s a r e p r c e	2 0 0 7
E i h a r n n g s p e r s a r e	€ i l l. m	0. 0 3	0. 4 9 -	1	2 0 1 0 2 0 3 0 4 0 0 6 0 0 8 0 9 1 0 1 1 1 5 7	2

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DEUTZ was admitted to Prime Standard on 1st January 2002 DEUTZ shares have been listed in SDAX since 24th March 2003

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Prospects for 2003: further profit improvement

Economic prospects

• Germany, Western Europe, and North America continuing weak
• War in Iraq
• Further growth in Asia, especially China and South Korea
• Growth opportunities in Eastern Europe

DEUTZ is well prepared for this difficult environment

• Focussing sales on growth markets and segments
• Expansion of activities with co-operation partners
• Systematic implementation of cost-reduction measures already initiated
• Intensification of successful Asset Management

We are planning on another profit improvement in 2003!

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DEUTZ reports positive results for 2002

• 1. Main key figures now show positive trends
• 1. Re-Launch programme successful again in second year
• 1. Sales in units increased, sales in value basically stable
• 1. Company returns a profit
• 1. Cash flow substantially improved
• 1. Indebtedness systematically reduced
• 1. Balance sheet total reduced through strict Asset Management
• 1. Numbers employed further reduced
• 1. DEUTZ in Prime Standard DEUTZ shares in SDAX
• 1. Prospects for 2003: further profit improvement

Basis created for a profitable future for DEUTZ!

DEUTZ – the engine the engine company. company.

We set standards and shape the We set standards and shape the future. future.