Facc Ag · VIE:FACC
Facc — FY2019 Earnings Presentation
27 slides from Facc's earnings presentation, 2020
Slide 1: Beyond Horizons SFY 2019
BEYOND HORIZONS | SFY 2019 a
Slide 2: Highlights 2019
HIGHLIGHTS 2019 CEO Robert Machtlinger
Slide 3: Highlights: Important key figures at a glance
HIGHLIGHTS Important key figures at a glance Revenues of Operating results EUR 665 mill. EUR 34,6 mill. Order Backlog FACC Croatia USD 6,5 bn Global Footprint Technology and Growth Orders signed EUR 18 mill. invested USD 800 mill.
Slide 4: New Contracts
NEW CONTRACTS Extension of customer and product portfolio > A32F neo Thrust Reverser for Bombardier Belfast – Increased market share on the A320neo, currently the most important program > Radoms as new product in our portfolio – Radoms for all A220 aircraft as well as Global Express & Challenger Bus
Slide 5: Innovation
INNOVATION We work on technologies for the next generation aircraft programs FACC “Wing of Tomorrow” development New Composite Wing Technology Innovative FACC material and process (FACC „MARI“ Patent) Highly efficient manufacturing installation for high production rates Reduction of cycles t
Slide 6: Aerospace Market
AEROSPACE MARKET CEO Robert Machtlinger
Slide 7: The Aerospace Industry
THE AEROSPACE INDUSTRY Today and tomorrow Stay focused: „Special thanks go to the Challenging times for the entire industry - From a stable forecast in entire FACC staff, who support the measures taken 2020 towards an environment that is difficult to plan in the short with enormous solidarity and mi
Slide 8: COVID-19: Impacts on the aerospace industry
COVID-19 Impacts on the aerospace industry From a local to a global crisis • Travel restrictions hit business, tourism and airlines hard • Worldwide air traffic is almost at a standstill • Airlines cut capacity by up to 100% • Many variables - duration & intensity of restrictions, GDP, cultural and
Slide 9: Global Market Overview
GLOBAL MARKET OVERVIEW Airline Profits Impact that is far beyond SARS impacts
Slide 10: Revenues Composition Fiscal Year 2019
REVENUES COMPOSITION FISCAL YEAR 2019
Slide 11: COVID-19: Current impact on FACC
COVID-19 Current impact on FACC CORONA Task Force established - Comprehensive preventive measures to protect the workforce • Implemented across the board • Constant learning • We react quickly to improve measures Supply chain from Austria, Germany, France, China, Italy and USA is currently intac
Slide 12: Setting the Course for the Future
SETTING THE COURSE FOR THE FUTURE Comprehensive package of measures defined Reduction of the cost structures (as already reported) will be implemented decisively. The 2020 investment budget will be adapted to the new requirements of the market. Measures for the vertical integration of strategi
Slide 13: FACC Cost Optimization Projects
FACC COST OPTIMIZATION PROJECTS What is F.A.C.T. and how does it fit into the current structure • Define target areas for improvements to reduce overall costs to reach 8 - 10% EBIT target • Ensure that cost improvements are sustainable (Performance & Quality) • Base improvements on process analysis
Slide 14: Areas of Action
AREAS OF ACTION POTENTIALS ARE LOCATED IN THREE TARGET AREAS MATERIAL AND € 25 PROCUREMENT COST Mio. 8-10 % Overall group margin € 15 MANUFACTURING target Mio. MARGIN IMPROVEMENT ONLY REQUIRES LIMITED SALES GROWTH, THEREFORE THE € 10 REQUIRED ACTIONS ARE LARGELY FIXED COST WITHIN OUR CONTROL Mio.
Slide 15: Get Well Plan: three year savings plan
32 MILL INTERIOR GET WELL PLAN Three year savings plan to improve profitability FY 2021 FY 2023 3 FY 2021 5 FY 2023 -24 8 32 10 FY 2021 8 Process FACC Croatia Procurement / Integration Fix Cost Total cost improvements Supply chain business jet reduction improvement
Slide 16: Financials
FINANCIALS ALES STAREK
Slide 17: Revenues
REVENUES FACC achieves revenues growth based on a 12 months view Revenues Revenue growth in million EUR Due to short financial year, the revenues were reduced, thus making a comparison difficult Based on old report scheme, FACC´s sales grew by approx. 2 % (yoy) 781,6 795,5 Revenue growth mainl
Slide 18: EBIT
EBIT EBIT development in line with management guidance EBIT EBIT Improvements in million EUR Due to short financial year, EBIT comparison not applicable Despite a negative contribution of Cabin Interiors 43,6 improvements are already visible 42,9 34,6 Aerostructures continues to stay within th
Slide 19: Aerostructures
AEROSTRUCTURES Program phase out drags on revenues Revenue EBIT and EBIT-Margin in million in million EUR EUR 16,0 14,6 102,7 14,4 14,0 13,1 82,3 78,3 12,0 72,4 74,5 73,0 66,5 10,0 9,3 18,6% 7,7 8,0 17,6% 14,0% 5,7 6,0 12,8% 4,8 29,5 10,5% 4,0 8,6% 16,3% 2,0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SQ Q1 Q2 Q3 Q4 -
Slide 20: Engines & Nacelles
ENGINES & NACELLES Stable growth fuels increasing contribution margin Revenue EBIT and EBIT-Margin in million in million EUR EUR 4,5 4,0 4,0 9,1% 3,5 2,9 3,0 46,5 46,4 3,0 43,8 44,1 43,4 2,6 41,1 39,5 2,5 6,6% 6,5% 2,0 1,8 6,6% 1,5 1,2 4,1% 16,1 1,0 0,0% 2,6% 0,0% 0,5 0,0 0,0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 21: Cabin Interiors
CABIN INTERIORS Airbus aircraft demand drives revenues Revenue EBIT and EBIT-Margin in million in million EUR 103,3 EUR 73,9 72,2 70,2 67,5 67,2 68,8 4,0 1,9% 5,1% 23,5 1,6% 1,8 2,0 2,0 -0,9% 0,1% 1,1 1,2 0,1 2,7% 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SQ Q1 Q2 Q3 Q4 Q1 Q2 Q3 SQ -2,0 -0,6 2018/19 2019 -7,0% -9,6%
Slide 22: Free Cashflow
FREE CASHFLOW Reduced investment necessity Free cashflow – FY 2018/19 Free cashflow – FY 2019 in EUR mill. in EUR mill. 31,2 74,8 -1,6 -35,7 25,1 1,1 -17,9 59,7 -13,1 43,6 -9,9 34,6 29,8 27,6 EBIT FY Depreciation EBITDA FY Changes in Investments Others FCF FY EBIT SFY 2019 Depreciation EBITDA SFY Ch
Slide 23: Capital Allocation
CAPITAL ALLOCATION Target of a Net Debt/EBITDA multiple of 2,0-2,5 Net Debt/EBITDA ratio Capital allocation priorities Invest organically in the business 2,97 Improve credit rating 2,42 1,96 Sustainable dividend to shareholders Selective M&A Return capital to activities on strategic shareholders FY
Slide 24: Financial Status as of Dec. 31, 2019
FINANCIAL STATUS AS OF DEC. 31, 2019 All covenants in line as of 31.12.2019 and 31.08.2019 Net Debt/EBITDA covenant had been changed from 3.5 to 4.0 effective 31.08.2019 Testing intervals will change according to new fiscal year dates: 31.12. and 30.06 – starting with 31.12.2019 Senior Debt an
Slide 25: Corona Crisis: OEKB emergency funding facility
CORONA CRISIS OEKB emergency funding facility provides additional liquidity safety net Repayment obligations of FACC in 2020 Unused Syndicated Loan facilities Bank cash of EUR 73mn and EUR 130mn unused credit EUR 180mn as of 29th February 2020 facilities as of 29th February Total available liqui
Slide 26: Outlook
OUTLOOK CEO Robert Machtlinger CFO Ales Starek
Slide 27: Outlook 2020
OUTLOOK 2020 The further course of the COVID-19 crisis cannot currently be assessed. Due to the lack of visibility, a serious or reliable outlook for the 2020 financial year is currently not possible. Effects and forecasts regarding the FACC will be announced at a later date after the market situati