Figeac Aero Sa · EURONEXT:FGA
Figeac Aero Sa — 9M 2024/25 Earnings Presentation
44 slides from Figeac Aero Sa's earnings presentation, Jan 28, 2025
Slide 1: The leading partner for major aerospace manufacturers
The leading partner for major aerospace manufacturers Investor presentation January 2025
Slide 2: Disclaimer
Disclaimer Before reading this presentation, you acknowledge that you are fully aware of the observations and limitations below: This document was prepared by Figeac Aéro (the “Company”) exclusively for information purposes. The information and opinions contained in this document may be updated, sup
Slide 3: Flight plan
Flight plan 1. GROUP PROFILE 2. MARKET DYNAMICS 3. FINANCIAL HIGHLIGHTS 4. PILOT 28 ONE-YEAR UPDATE 5. OUTLOOK
Slide 4: Group profile
Sommaire 01 Group profile
Slide 5: A leader in the industrialization of metal parts for the aerospace industry
01 G ro u p p ro f i l e A leader in the industrialization of metal parts for the aerospace industry Our mission: sustainably enable today’s and tomorrow’s 8 sites in France aerospace industry PICARDY A SUSTAINABLE GROWTH STRATEGY SAINT- BASED ON 3 KEY PILLARS NAZAIRE 14 production sites FIGEAC acro
Slide 6: A one-stop shop for all metallic aerospace parts & sub-assemblies
01 G ro u p p ro f i l e A one-stop shop for all metallic aerospace parts & sub-assemblies Sourcing of Machining, sheet metal work, Control of part integrity Coordination & raw materials boiler-making and fitting without altering support for optimal execution technical characteristics SOURCING ENGIN
Slide 7: A comprehensive product & service range
01 G ro u p p ro f i l e A comprehensive product & service range Elementary parts Elementary parts We manufacture anything metallic that flies small & medium-size large size Aluminium Titanium Steel Inconel Profiles Turned parts WING Spars, ribs, wing panels, STABILISERS high-lift devices, flaptrack
Slide 8: FIGEAC AÉRO among the strategic suppliers for aerospace OEMs
01 G ro u p p ro f i l e FIGEAC AÉRO among the strategic suppliers for aerospace OEMs OEMs Commercial Regional / Business Defense / Space Helicopters Engines Systems Aerostructures Flight controls Nacelles Landing gears Fuselage Wings Local challengers Tier-1 T1/T2 suppliers Parts, work packages, su
Slide 9: Strategic positions on all the main aerospace programmes
01 G ro u p p ro f i l e Strategic positions on all the main aerospace programmes Commercial Engines Business Military Helicopters Single-aisle Widebody Key programs Key customers Key programs Key customers Key programs Key customers Key programs Key customers Key programs Key customers Key programs
Slide 10: Key programmes, customers and industries
02 G ro u p o v e rv i e w Key programmes, customers and industries Revenue breakdown by programme Revenue breakdown by customer Revenue breakdown by industries Diversification A320 19% Activities 9% Others 28% Airbus Atlantic 24% Others 41% A350 18% Rolls Royce 1% Gulfstream 1% Collins 2% Safran 19
Slide 11: A strong commitment to net-zero aviation
01 G ro u p p ro f i l e A strong commitment to net-zero aviation Short & medium term objectives Long-term objectives Ratings FY2023/24 Improve environmental performance Actively take part in the of all facilities across the Group manufacturing of clean aircraft D Track and decrease operation Positi
Slide 12: A steadily improving financial performance over time
01 G ro u p p ro f i l e A steadily improving financial performance over time Reach critical size Transformation 21 + Route 25 PILOT 28 ▪ Heavy investment phase ▪ Adaptation of cost and capital ▪ Higher-than-market revenue Over €600 millions invested in new capacity structure & governance growth & g
Slide 13: Market dynamics
Sommaire 02 Market dynamics
Slide 14: Air traffic resiliency supported by mega-trends
02 M a rk e t d y n a m i c s Air traffic resiliency supported by mega-trends 25000 2024 YTD Air traffic Projections growth drivers ▪ Passenger traffic 2024-2043 +10.6% ▪ GDP growth ▪ Capacity ▪ Passenger traffic (+2.6% pa) 20000 +8.9% +4.7% pa ▪ Load factor ▪ Emerging 83.5% (+1.2 pt) ▪ Cargo traffi
Slide 15: Driving ever increasing projected production rates
02 M a rk e t d y n a m i c s Driving ever increasing projected production rates Net orders & backlog 2024 75 / mo 60,0 A320f 50 / mo Narrowbody 83% 40,0 8,658 826 net orders (vs 766 deliveries) 20,0 14 / mo A220 A330 6% A350 3% 8% - 12 / mo B737 10,0 77% Widebody 377 net orders 6,162 (vs 333 delive
Slide 16: A paradigm change in OEM / subcontractor relations
02 M a rk e t d y n a m i c s A paradigm change in OEM / subcontractor relations ▪ Dependent on critical suppliers ▪ Increased reliance on outsourcing ▪ Major rate increases to reduce backlog duration ▪ Promotion of supply chain competition OEM → Secure production ramp-up and → Optimized prices and
Slide 17: Financial highlights
Sommaire 03 Financial highlights
Slide 18: 1H24/25 - P&L
03 Financial highlights 1H24/25 - P&L +12.0% organic revenue growth IFRS, €m (audit in the final stages) 1H24/25 1H23/24 Chg. Org. chg. EBITDA margin up 190bp Current operating income & Revenue 200.0 181.2 +10.3% +12.0% operating income now positive Financial income: Current EBITDA 25.8 19.9
Slide 19: 1H24/25 - Q2 & H1 revenue
03 Financial highlights 1H24/25 - Q2 & H1 revenue Revenue over the period (in €m) OTHER CLIENTS AIRBUS 28% ATLANTIC 27% Q2 2024/25 6M 2024/25 +6.6% +12.8% +10.3% +14.7% org. +12.0% org. Revenue +21.7% +20.6% BOMBARDIER by client 24,0 2% +24.3% org. +23.0% org. 200,0 -2,2 -3,1 EMBRAER 2% 19,8 0,4 105
Slide 20: 1H24/25 – Current EBITDA
03 Financial highlights 1H24/25 – Current EBITDA Current EBITDA over the period (€m) Current EBITDA €25.8m, +30.0% 2,6 12.9% ▪ Increased revenue ▪ Tight cost control 6,1 25,8 ▪ Improvements in Mexico -2,8 Current EBITDA margin 12.9%, +190bp 11.0% Stronger contribution expected in H2: ▪ Increas
Slide 21: 1H24/25 – Cash flows
03 Financial highlights 1H24/25 – Cash flows IFRS, €m (audit in the final stages) 1H24/25 1H23/24 Chg. Increase in cash flow Cash-flow1 23.9 22.4 +6.3% Very positive impact from WCR: Change in WCR 19.5 13.7 ▪ Improved receivables Cash-flow from operating activities 43.4 36.2 +19.9% ▪ Cash advanc
Slide 22: Q3 & 9M revenue
03 Financial highlights Q3 & 9M revenue Revenue over the period (in €m) OTHER CLIENTS AIRBUS 29% ATLANTIC 24% Q3 2024/25 9M 2024/25 +10.9% +9.0% Revenue +11.5% org. +9.6% org. BOMBARDIER by client +6.6% 2% +7.4% +5.1% org. 29,0 303,0 EMBRAER 2% +5.7% org. -2,3 AIRBUS 14% -1,6 COLLINS 2% 1,5 103,0 5,
Slide 23: PILOT one-year update
Sommaire 04 PILOT 28 one-year update
Slide 24: PILOT one year after launch
04 P I L O T 28 o n e - y e a r u p d a t e PILOT 28 one year after launch P I L O T Performance Optimisation of financial Transformation Innovation Lower impact of sales performance of model ▪ 17 new agreements (civil ▪ Continued R&D efforts ▪ 3 major facilities ▪ Cost base and CAPEX ▪ Reinforcemen
Slide 25: Order backlog at record level
05 P I L O T 28 o n e - y e a r u p d a t e Order backlog at record level OTHER PROGRAMMES 10% Main highlights RAFALE 2% LEGACY 450 2% E2 3% A320 33% ▪ Higher medium-to-long-term rates GLOBAL 7500 3% on main commercial jet programmes A330 3% €4.7bn ▪ Potential for better price and more (=) B737 8% f
Slide 26: A more favorable economic environment overall
04 P I L O T 28 o n e - y e a r u p d a t e A more favorable economic environment overall Contract margin optimization Lower inflation EUR / USD ▪ Price increase agreements ▪ Cost base growth slower than ▪ More favorable USD hedging cost expected 1.12 ▪ Slighter price attrition 1.10 1.11 ▪ Other sou
Slide 27: Outlook
Sommaire 05 Outlook
Slide 28: PILOT 28's new revenue trajectory
05 Outlook PILOT 28’s new revenue trajectory Revenue growth projection FY23/24 – FY27/28 (€m) €25-30m More favorable environment ▪ New business €120-130m Projected rates > 600 Commercial, defense & services €15-25m Security margin ▪ Projected build rates €80-100m Revenue increase from rate increases
Slide 29: PILOT 28's new current EBITDA trajectory
05 Outlook PILOT 28’s new current EBITDA trajectory Current EBITDA growth projection FY23/24 – FY27/28 (€m) €20-25m More favorable environment €35-40m > 100 Higher revenue €5-10m (>17%) ▪ Higher revenue & efficiency & efficiency Security margin ▪ Operational leverage ▪ Efficiency initiatives ▪ More
Slide 30: PILOT 28's new Free Cash Flow trajectory
05 Outlook PILOT 28’s new Free Cash Flow trajectory FCF growth projection FY23/24 – FY27/28 (€m) >17% Higher current EBITDA Lower CAPEX > 60 ▪ Increased cash flow generation from c. €5m Optimized WCR Security margin higher profitability ▪ Stable assumptions on WC and CAPEX ▪ Inventories down to 140
Slide 31: PILOT 28's new financial leverage trajectory
05 Outlook PILOT 28’s new financial leverage trajectory Financial leverage projection FY23/24 – FY27/28 (€m) 7.0 Higher current EBITDA 5.5 ▪ Accelerated deleveraging ▪ Higher profitability ▪ Lower net debt through higher Lower cash generation net debt > 2.0 FY 2022/23 FY 2023/24 FY 2027/28e FY 2027/
Slide 32: Financial situation
05 Outlook Financial situation4 Debt amortization schedule & projected leverage3 5.5x 200,0 6 176,9 180,0 ~4x 5 160,0 Cash Net debt 140,0 ~3x 4 €86.5m €275.5m1 <2x 120,0 100,0 3 80,0 58,4 2 60,0 46,3 35,0 38,7 35,8 40,0 Fixed rate debt Average cost 1 20,0 5,4 ~ 77% 5.5%1 0,0 0 FY 23/24 FY 24/25 FY 2
Slide 33: Short-term guidance confirmed & medium-term guidance revised upwards
05 Outlook Short-term guidance confirmed & medium-term guidance revised upwards FY24/25e FY27/28e >€600m 1 REVENUE €420-440m (vs €550-600m) 2 CURRENT EBITDA €67-73m >17% (vs >16%) €30-35m >€60m 3 FREE CASH FLOWS (vs €20-28m) (vs c. €50m) <2x 4 LEVERAGE ~4x (vs 2-2.5x) Consolidate FIGEAC AÉRO’s posit
Slide 34: Q&A
Sommaire Q&A
Slide 35: FIGEAC AÉRO ideally positioned to continue to deliver profitable growth
FIGEAC AÉRO ideally positioned to continue to deliver profitable growth in foreseeable future Strong market Unique competitive Solid Revenue Improved financial fundamentals X positioning X execution = growth X performance • Long-term air traffic growth ▪ Aerospace pure player • Excess capacity • Inc
Slide 36: Appendices
Sommaire Appendices
Slide 37: Consolidated P&L
Appendices Consolidated P&L IFRS, €m (audit in the final stages) 1H24/25 1H23/24 Chg. Revenue 200.0 181.2 +10.3% Other finished products and WIP 8.8 6.7 +32.7% Cost of bought-in goods and services and external expenses (132.1) (121.1) +9.1% Personnel expenses (50.0) (46.7) +7.1% Taxes and duties (1.
Slide 38: Consolidated balance sheet (simplified)
Appendices Consolidated balance sheet (simplified) IFRS, €m (audit in the final stages) 30/09/24 31/03/24 Fixed assets 265.2 269.6 Other non-current assets 26.8 18.5 Inventory 203.6 190.6 Contract assets 14.2 37.2 Trade receivables 34.3 49.6 Current tax assets 4.2 7.1 Other current assets 17.1 20.4
Slide 39: Consolidated cash flow statement (simplified)
Appendices Consolidated cash flow statement (simplified) IFRS, €m (audit in the final stages) 1H24/25 1H23/24 Net profit (4.4) (5.3) Depreciation, amortization and provisions 20.3 23.1 Other non-cash adjustments 0.6 (2.3) Tax expense 0.4 0.1 Cost of debt 6.9 6.8 Cash-flow before cost of debt and tax
Slide 40: Financial debt structure
Appendices Financial debt structure Debt Amount Type1 Rate State-guaranteed loan (PGE) 127.1 A Fixed Bonds 69.1 B Fixed Bonds 16.5 B Variable Bank debt 53.1 A Fixed Bank debt 51.5 A Variable Leases 18.7 A Fixed Others 12.3 A Factoring 13.6 ns Variable ~80% 77% Gross debt2 361.9 amort. fixed Average
Slide 41: WCR update (1H24/25)
Appendices WCR update (1H24/25) WCR and DIO over the financial year (in number of days of revenue) 321 242 236 210 186 175 161 145 132 95 82 58 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 1H24/25 DIO WCR Investor presentation | January 2025 41 GROUPE
Slide 42: Our strategic positions on the main aircraft programmes
Appendices Our strategic positions on the main aircraft programmes A320 A350 B737 Global 7500 AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES LEAP-1A TRENT XWB LEAP-1B PASSPORT 20 Shipset value1: Shipset value1: Shipset value1: Shipset valu
Slide 43: Glossary
Appendices Glossary Term / indicator Definition OEM (Original Equipment Aircraft manufacturers, engine manufacturers and other airframers Manufacturer) Build-to-Print The manufacture of parts and sub-assemblies by a sub-contractor based on plans and specifications provided by the client OTD (O
Slide 44: Address and investor contact
Address Zone industrielle de l’Aiguille 46100 FIGEAC FRANCE Investor and analyst contact Simon Derbanne VP Investor Relations +33 (0)5 81 24 63 91 simon.derbanne@figeac-aero.com