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 2016. 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 2016 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 are exceeded, this can lead to us performing better than we predicted.

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 diesel engines and other drive systems.

The stricter emissions standards for construction equipment and agricultural machinery that were introduced in China with effect from 1 October 2015 present us with the opportunity to capitalise on this competitive edge and increase our share of the Chinese market in the short to medium term.

Production and quality

The digital transformation of manufacturing, referred to as Industry 4.0, is exploring new approaches to production. In combination with projects to improve quality, this may lead to substantial efficiency increases and greater customer satisfaction in the short to medium term.