Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2022 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Feb 14, 2023
Slide 1: Preliminary FY 2022 Results – Conference call with Investors and Analysts
Preliminary FY 2022 Results – Conference call with Investors and Analysts 02/14/2023 - Investor Relations
Slide 2: Review 2022: Strong recovery in air traffic
Review 2022 STRONG RECOVERY IN AIR TRAFFIC I Passenger traffic improved to 68% of 2019 levels I Cargo traffic stabilized in 2022 I China lifts COVID restrictions I 2023 passenger traffic to reach 86% of 2019 levels I Cargo traffic is expected to slow down slightly in 2023 I Market environment remain
Slide 3: Review 2022: Military, Commercial OEM, Commercial MRO
Review 2022 MILITARY BUSINESS COMMERCIAL OEM COMMERCIAL MRO I FCAS Phase 1B contract signed in Dec. 2022 I Flight tests with GTF Advantage on A320neo I MRO contract wins of ~3.6 bn US$ in 2022 I Prioritized maintenance support for German I Strong recovery in narrow body flight activity I MRO product
Slide 4: Review 2022: Technology, Financials, Management
Review 2022 TECHNOLOGY FINANCIALS MANAGEMENT I Clean Air Engine technology agenda shows I Dividend proposal of 3.20 Euro per MTU share I Lars Wagner new CEO since Jan 1, 2023 path to zero-emissions flight I Guidance 2023 updated I Dr. Silke Maurer, new COO, has joined MTU I Key projects WET Engine c
Slide 5: Financial Highlights FY 2022
Financial Highlights FY 2022 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 655 (12.3%) 5,330 +27% +40% 4,188 468 (11.2%) 476 +39% 342 326 +36% 240 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 Preliminary FY2022 Results - Investor Relations 5
Slide 6: Full year results broadly in line with our Guidance 2022
Full year results broadly in line with our Guidance 2022 Guidance 2022 Actuals 2022 Revenues ~ 5.4 - 5.5 bn€ 5.3 bn€ EBIT adj. margin ~ up low thirties % 12.3% (655 m€) Net Income adj. Growth in line with EBIT adj. 476 m€ CCR Expected at 60 -70% 69% (326 m€) Preliminary FY2022 Results - Invest
Slide 7: OEM Segment
OEM Segment (in m €) FY 2021 FY 2022 Change Revenues 1,547 1,831 18% Military Business 482 496 3% Commercial Business 1,066 1,335 25% EBIT adj. 320 387 21% EBIT adj. margin % 20.7% 21.1% • US$ Commercial revenues up by 11% • Military revenues up by 3% • EBIT margin slightly up 7 02/14/2023 Prelimina
Slide 8: Commercial MRO
Commercial MRO (in m €) FY 2021 FY 2022 Change Revenues 2,741 3,616 32% EBIT adj. 149 268 80% EBIT adj. margin % 5.4% 7.4% • US$ Revenues up by 17% • EBIT margin up due to business mix and strong FX-tailwind 8 02/14/2023 Preliminary FY2022 Results - Investor Relations
Slide 9: Guidance 2023 - adjusted
Guidance 2023 - adjusted ORGANIC REVENUE Military Commercial OE Total Group Sales EBIT adj. margin Up ten % Up thirty % EUR 6.1 – 6.3 bn € Stable Commercial Commercial MRO Spares MRO up high teens % Up high teens GTF share at mid to high to low twenties % thirties % of revenue Preliminary FY2022 Res
Slide 10: Appendix
Appendix 10 02/14/2023 Preliminary FY2022 Results - Investor Relations
Slide 11: Group Order Book stable
Appendix Group Order Book stable +0.2% 22.2 bn€ 22.3 bn€ Order book 2021/12/31 Order book 2022/12/31 11 02/14/2023 Preliminary FY2022 Results - Investor Relations
Slide 12: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of January 6th, 2023 in m$ 1,520 1,040 460 140 2023 2024 2025 2026 Average hedge rate (€/US$) 1.13 1.14 1.10 1.06 12 02/14/2023 Preliminary FY2022 Results - Investor Relations
Slide 13: Profit & Loss
Appendix Profit & Loss (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change Revenues 1,180 1,513 28% 4,188 5,330 27% Total cost of sales -1,058 -1,243 -3,601 -4,475 Gross profit 122 270 122% 586 855 46% Gross profit margin % 10.3% 17.8% 14.0% 16.0% R&D according to IFRS -24 -30 -83 -106 SG&A -60 -
Slide 14: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change EBIT reported 67 177 165% 355 508 43% Adjustment (PPA Depreciation & Amortization) 5 5 21 20 Adjustment (IAE Upshare) 6 6 23 23 Adjustment (Vericor sale) 0 0 -13 0 Adjustment (Impair
Slide 15: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change Revenues Group 1,180 1,513 28% 4,188 5,330 27% OEM Commercial 300 388 29% 1,066 1,335 25% OEM Military 172 187 9% 482 496 3% MRO 731 973 33% 2,741 3,616 32% Consolidation -24 -36 -101 -117 EBIT adjusted Gr
Slide 16: Research & Development
Appendix Research & Development (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change Total R&D 68 74 9% 230 265 15% Customer funded R&D -24 -20 16% -70 -65 7% Company expensed R&D 44 54 22% 160 201 25% Capitalization of R&D -15 -15 -49 -66 Amortisation 7 8 25 30 Impairment 45 0 45 63 Total R&D imp
Slide 17: Financial Result
Appendix Financial Result (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change Interest income 0 4 >300% 1 7 >300% Interest expense -7 -7 0% -30 -29 4% Interest result -6 -2 66% -29 -22 22% Financial result on other items 1 -12 -10 -23 US$ / non cash valuations / others 3 -9 -4 -12 Interest for pe
Slide 18: MTU's Cash development January – December 2022
Appendix MTU’s Cash development January – December 2022 101 Free Cashflow: +326 -400 -14 0 12 728 -224 -3 2 823 722 Adjusted Non-operating exceptional items: -2 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financi
Slide 19: Cash Flow
Appendix Cash Flow (in m €) FY 2021 FY 2022 Change Net Income IFRS 231 333 44% Depreciation and amortization 358 356 Change in provisions and liabilities -79 219 Change in working capital 50 -293 Taxes -22 54 Interest, derivatives, others 30 59 Cash Flow from operating activities 567 728 28% Net Inv
Slide 20: Net debt
Appendix Net debt (in m €) 31.12.2021 31.12.2022 Change Bonds and notes 604 605 Convertible bonds 529 531 Revolving Credit Facility 0 0 Financial lease liabilities 176 166 Loans from related companies and third parties 0 0 Other financing liabilities (financing component) 142 333 thereof arising fro
Slide 21: Working capital
Appendix Working capital (in m €) 31.12.2021 31.12.2022 Change Inventories 1,380 1,514 Prepayments -398 -478 Receivables 2,073 2,710 Payables -1,654 -1,845 Working Capital 1,401 1,901 36% 21 02/14/2023 Preliminary FY2022 Results - Investor Relations
Slide 22: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2021 31.12.2022 Change Intangible assets 1,128 1,151 Property, plant, equipment 1,251 1,384 other non-current assets 1,664 1,611 Total non-current assets 4,043 4,146 3% Current assets 4,260 5,085 19% Total assets 8,304 9,230 11% Equity 2,760 3,107 13% Non-curren
Slide 23: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q4 2021 Q4 2022 Change FY 2021 FY 2022 Change OEM 136 54 285 271 MRO 18 25 72 87 Total depreciation / amortization* 154 78 -49% 357 357 0% PPA OEM 5 5 18 18 PPA MRO 1 0 2 2 IAE Upshare OEM 6 6 23 23 PPA depreciation / amortization & IAE Upshare amort
Slide 24: Guidance for PPA and IAE Upshare Amortization; R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) 2022 2023E 2024E 2025E PPA depreciation / amortization 20 18 18 15 IAE Upshare 23 23 23 23 Adjustments PPA / IAE Upshare 43 41 41 38 Guidance for R&D Amortization (in m€) 2022 2023E 2024E 2025E R&D amortization 30 31 34 37 24 02/14/2023
Slide 25: Proprietary Notice; Cautionary note regarding forward-looking statements
Proprietary Notice This document contains proprietary information of the MTU Aero Engines AG group companies. The document and its contents shall not be copied or disclosed to any third party or used for any purpose other than that for which it is provided, without the prior written agreement of MTU