DEUTZ SHARESThe world’s stock markets were characterised by strong price volatility in 2016. Following a very weak start to the year and a subsequent period of recovery, the United Kingdom’s vote to leave the European Union in June 2016 subdued the markets only temporarily. After rallying at the end of the year, the DAX closed on 30 December 2016 at its high for the year of 11,481.06 points. This was 6.9 per cent above the level at the end of 2015.

DEUTZ SHARES MAKE SUBSTANTIAL GAINS

The SDAX, in which DEUTZ shares are listed, rose in value by 4.6 per cent in 2016 and closed at 9,519.43 points (end of 2015: 9,098.57 points). The DAXsector Industrial, the index for German industrial companies, gained 19.3 per cent in the reporting year to close at 5,788.57 points (end of 2015: 4,853.88 points).

DEUTZ shares made significant gains in 2016. Having made a weak start to the year, the share price fell to its lowest point for the year of €2.65 on 11 February 2016. However, the shares then rebounded strongly, particularly at the end of the year. Shares in machinery manufacturers ben-efited from speculation about additional investment in government infrastructure projects follow-ing the presidential election in the United States. DEUTZ shares reached their high for the year of €5.58 on 12 December 2016. Their year-end closing price of €5.35 was 45.0 per cent higher than their price twelve months earlier of €3.69.

Market capitalisation stood at €646.6 million as at 30 December 2016, compared with €446.0 mil-lion at the end of 2015.

Key figures for DEUTZ shares

2016 2015

Number of shares (31 Dec) 120,861,783 120,861,783

Average number of shares 120,861,783 120,861,783

Share price as at 31 Dec (€) 5.35 3.69

Share price high (€) 5.58 5.59

Share price low (€) 2.65 2.86

Market capitalisation as at 31 Dec (€ million) 646.6 446.0

Earnings per share (€) 0.14 0.04

EARNINGS PER SHARE

Earnings per share is calculated by dividing the net income for the year attributable to the share-holders of DEUTZ AG by the weighted average number of shares in issue. In the year under review, the number of DEUTZ shares in issue was unchanged at 120.9 million. Basic earnings per share was therefore €0.14, compared with €0.04 in 2015.

Key data on stock market listing

ISIN DE0006305006

WKN 630500

Reuters DEZG.DE

Bloomberg DEZ:GR

Market segment Regulated Market/Prime Standard

Trading platforms Xetra, Frankfurt /Main, Düsseldorf

5

DEUTZ AG Annual Report 2016

MISCELLANEOUSNOTESFINANCIAL STATEMENTSCOMBINED MANAGEMENT REPORT

TO OUR SHAREHOLDERS

Foreword

DEUTZ shares

DIVIDEND ENABLES SHAREHOLDERS TO SHARE IN PROFITS

The Board of Management and Supervisory Board propose that the dividend paid for 2016 should remain unchanged at €0.07. This enables us to fulfil our aim of paying a consistent dividend. We plan to carry on enabling our shareholders to participate in the success of our Company in the form of a regular dividend. At the same time, we intend to continue funding a significant propor-tion of our growth ourselves, that is to say from our own capital.

THREE­QUARTERS OF ALL DEUTZ SHARES IN FREE FLOAT

Swedish truck and construction equipment manufacturer AB Volvo is the largest individual shareholder in DEUTZ AG, with a stake of just over 25.0 per cent. The proportion of free float shares is almost 75.0 per cent, and they are held by a broadly diversified range of private and in-stitutional shareholders both in Germany and abroad. Most of the private investors are in Germa-ny, although fund management companies based in North America held the largest proportion among the institutional investors. At the end of 2016, Norges Bank held 4.1 per cent of our Com-pany, while Old Mutual Plc held 3.1 per cent and Dimensional Holdings Inc. 3.0 per cent. These are considered non-controlling shareholdings.

25.0 AB Volvo Group

3.1 Old Mutual Plc

4.1 Norges Bank

64.8 Other free float

3.0 Dimensional Holdings Inc.

Shareholder structure as at 31 December 2016

%

January 2016 December 2016

DEUTZ share price performance in 2016

%

100

80

60

120

140

160SDAX

DEUTZ AG

DAXsector Industrial

6

DEUTZ AG Annual Report 2016

INTENSIVE INVESTOR­RELATIONS WORK

We provide all shareholders with prompt, transparent and comprehensive information about all significant events in our Company to ensure a high level of acceptance and long-term trust among our shareholders. Last year, we again worked closely with our shareholders, analysts and all other interested parties in the capital markets. The latest corporate information, such as presentations, financial reports, press releases and ad-hoc announcements, is always available on our website.

At our annual results press conference and analysts’ meeting on 17 March 2016, we presented the DEUTZ annual financial statements and our future strategic direction. We also held confer-ence calls when we published our quarterly results.

In 2016, we participated in a total of 16 roadshows and investor conferences in Germany, France, Denmark, the United Kingdom, Switzerland and the United States. We also met personally with analysts, institutional investors and private investors throughout the year.

EIGHT ANALYSTS MONITOR DEUTZ SHARES

As at the end of 2016, eight banks and securities houses were monitoring the performance of DEUTZ shares: Bankhaus Lampe, Commerzbank, DZ Bank, Equinet, HSBC Trinkaus & Burkhardt, M.M. Warburg, Quirin Bank and Solventis.

Further information can be found on our website at www.deutz.com under Investor Relations.

If you need more information, visit our website or give us a call:

INVESTOR RELATIONS

Tel: +49 (0)221 822 2491Fax: +49 (0)221 822 15 2491Email: ir@deutz.comWebsite: www.deutz.com

Monthly average

Share price high/low

DEUTZ share price high and low for 2016

€

2.653.14

3.103.54

2.78

4.16

3.97

4.63

4.29

4.67

3.57

4.38

3.30

4.12

3.88

4.31

3.80

4.49

4.47

4.57

4.30

5.21

5.15

5.58

MayJan Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec

7

DEUTZ AG Annual Report 2016

MISCELLANEOUSNOTESFINANCIAL STATEMENTSCOMBINED MANAGEMENT REPORT

TO OUR SHAREHOLDERS

DEUTZ shares