Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2019 Earnings Presentation
24 slides from Mtu Aero Engines's earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Results
Q1 2019 Results Conference Call with Investors & Analysts 30 April 2019 - Investor Relations
Slide 2: Business Highlights Q1 2019
Business Highlights Q1 2019 • Passenger traffic in the first 2 months above long term average • GTF engines accumulated 2 million flight hours • 1.3 bn US$ new contract wins for our MRO segment • New MRO service portfolio “MTUplus Intelligent Solutions” introduced • Partnership between Safran and MT
Slide 3: Financial Highlights Q1 2019
Financial Highlights Q1 2019 Revenues (m€) EBIT adj / EBIT adj. Margin (m€ / %) 1,500 300 20% 17.2% 16.6% +11% 16% 1,000 1,131 200 +7% 1,016 12% 188 175 8% 500 100 4% 0 0 0% 3M 2018 3M 2019 3M 2018 3M 2019 Net income adj. / EPS adj. (m€ / €) Free Cash Flow (m€) 300 3.00 200 2.39 2.59 150 200 2.00 +7
Slide 4: Starting Q1 2019 changes are incorporated in MTU's statements
Starting Q1 2019 3 changes are incorporated in MTU’s statements PY 2018 FY 2019 1. Accounting change IFRS 16: Ex-operating leases are now on the balance sheet with lease liability and right-of-use asset Net Debt Ca. +150 m EUR (No restatement) Ca. +150 m EUR Free Cashflow Ca. + 30 m EUR (No restatem
Slide 5: OEM Segment
OEM Segment (in m €) 3M 2018 3M 2019 Change Revenues 410 491 20% Military Business 91 105 15% Commercial Business 319 386 21% EBIT adj. 123 131 6% EBIT adj. margin % 30.1% 26.6% • US$ Commercial business growth: ~12% • Military revenues up by 15% • EBIT margin slightly down due to stronger Commercia
Slide 6: Commercial MRO
Commercial MRO (in m €) 3M 2018 3M 2019 Change Revenues 618 655 6% EBIT adj. 52 57 10% EBIT adj. margin % 8.3% 8.7% • Organic Revenue growth ~ 9% • EBIT margin increase due to process change MTU-Z 30 April 2019 Q1 2019 Results - Investor Relations 6 © MTU Aero Engines AG. The information contained h
Slide 7: Guidance 2019 Update: Slightly higher cash conversion coming from IFRS16 implementation
Guidance 2019 Update: Slightly higher cash conversion coming from IFRS16 implementation Organic Growth Military revenues + 10% Commercial OE Up low teens Commercial Spares Up mid to high single digit Commercial MRO Up high single digit* Total Group Sales ~ 4.7 bn € EBIT adj. margin ~ 15.5% Net Incom
Slide 8: Appendix
Appendix 30 April 2019 Q1 2019 Results - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: Group Order Book up 5%
Appendix Group Order Book up 5 % +5% 18.5 bn€ 17.6 bn€ Order book 2018/12/31 Order book 2019/03/31 30 April 2019 Q1 2019 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of April 30, 2019 (% of net exposure) in m$ 1,270 (=85%) 1,070 (=61%) 540 (=30%) 2019 2020 2021 Average hedge 1.18 1.19 1.19 rate (US$/€) 30 April 2019 Q1 2019 Results - Investor Relations 10 © MTU Aero Engines AG. The information contained
Slide 11: Profit & Loss
Appendix Profit & Loss (in m €) 3M 2018 3M 2019 Change Revenues 1,016 1,131 11% Total cost of sales -802 -893 Gross profit 215 238 11% Gross profit margin % 21.1% 21.1% R&D according to IFRS -13 -17 SG&A -48 -53 Other operating income (expense) 1 -9 P&L of companies accounted "at equity and at cost"
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) 3M 2018 3M 2019 Change EBIT reported 162 175 8% Adjustment (PPA Depreciation & Amortization) 5 5 Adjustment (IAE Upshare) 8 8 EBIT adjusted 175 188 7% thereof P&L of companies accounted "at equity" 8 14 Interest result -1 -1 Int
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) 3M 2018 3M 2019 Change Revenues Group 1,016 1,131 11% OEM Commercial 319 386 21% OEM Military 91 105 15% MRO 618 655 6% Consolidation -12 -15 EBIT adj. Group 175 188 7% OEM (Commercial / Military) 123 131 6% MRO 52 57 10% Consolidation 0 0 EBIT margin
Slide 14: Research & Development
Appendix Research & Development (in m €) 3M 2018 3M 2019 Change Total R&D 53 58 9% Customer funded R&D -6 -6 -3% Company expensed R&D 47 52 10% Capitalization of R&D -25 -27 Amortisation 5 5 Total R&D impact P&L (on EBIT) 27 30 13% thereof booked into sales and COGS 13 13 thereof booked into R&D acc
Slide 15: Financial Result
Appendix Financial Result (in m €) 3M 2018 3M 2019 Change Interest income 1 3 150% Interest expense -2 -4 -70% Interest result -1 -1 -8% Financial result on other items -9 0 US$ / non cash valuations / others -6 4 Interest for pension provisions -3 -4 Financial result -11 -1 87% 30 April 2019 Q1 201
Slide 16: MTU's Cash development January – March 2019
Appendix MTU’s Cash development January – March 2019 109 Free Cashflow: +141 -50 -11 1 0 -46 10 3 202 208 99 Adjusted Non-operating exceptional items: -10 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing pay
Slide 17: Cash Flow
Appendix Cash Flow (in m €) 3M 2018 3M 2019 Change Net Income IFRS 106 127 19% Depreciation and amortization 47 60 Change in provisions and liabilities 37 79 Change in working capital -25 -83 Taxes 17 20 Interest, derivatives, others 0 0 Cash Flow from operating activities 183 202 10% Net Investment
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2018 31.03.2019 Change Bonds and notes 100 101 Convertible bond 483 484 Financial liabilities to bank 54 40 thereof Revolving Credit Facility 15 0 thereof Note Purchase Agreement 30 30 Finance lease liabilities 10 153 Loans from third parties 35 36 Financial liabilit
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2018 31.03.2019 Change Inventories 996 1,090 Prepayments -293 -338 Receivables 1,996 2,105 Payables -1,331 -1,406 Working Capital 1,368 1,451 6% 30 April 2019 Q1 2019 Results - Investor Relations 19 © MTU Aero Engines AG. The information contained herein is pr
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2018 31.03.2019 Change Intangible assets 1,073 1,082 Property, plant, equipment 799 949 other non-current assets 1,844 1,839 Total non-current assets 3,716 3,870 4% Current assets 3,135 3,449 10% Total assets 6,851 7,319 7% Equity 2,144 2,261 5% Non-current liab
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) 3M 2018 3M 2019 Change OEM 39 43 MRO 8 17 Total depreciation / amortization* 47 60 27% PPA OEM 5 5 PPA MRO 1 1 IAE Upshare OEM 8 8 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) 13 13 -1% OEM 27 31 MRO 8 16 Depreciation
Slide 22: Restated 2018 Commercial OEM revenues
Appendix Restated 2018 Commercial OEM revenues pre accounting change GTF GENX OEM-MRO revenues post accounting change GTF GENX OEM-MRO revenues (in m €) Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Revenues Group 1,016 1,132 1,170 1,248 4,567 1,016 1,132 1,170 1,24
Slide 23: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could
Slide 24: Proprietary Notice
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