Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — H1 2022 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Jul 27, 2022
Slide 1: H1 2022 Results
H1 2022 Results 7/27/2022 / Conference Call with Investors and Analysts
Slide 2: Q2 2022 Review
Q2 2022 Review Air Traffic – RPK/CTK *) Key messages in current market environment • Update of IATA air traffic outlook for 2022 indicates stronger recovery: • Strong order book justifies higher production rates for narrowbody aircraft Passenger traffic to -17.6% vs. 2019 • Successful Farnborough ai
Slide 3: Q2 2022 Review
Q2 2022 Review Q2 2022 Review Management Change • Spain (20 a/c) and Germany (38 a/c) Eurofighter Tranche 4 orders secure • Reiner Winkler, CEO terminates his mandate at year end 2022 utilization of EJ200 engine programs for many years • Lars Wagner, COO will become new CEO on Jan 1, 2023 • Prioriti
Slide 4: Financial Highlights Q2 2022
Financial Highlights Q2 2022 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 2,469 +23% 2,004 290 (11.7%) +53% 190 207 (9.5%) 187 +53% -10% 168 135 6M 2021 6M 2022 6M 2021 6M 2022 6M 2021 6M 2022 6M 2021 6M 2022 H1 2022 Results - Investor Relations 4 27.07.2022
Slide 5: OEM Segment
OEM Segment (in m €) 6M 2021 6M 2022 Change Revenues 701 810 15% Military Business 187 213 14% Commercial Business 515 596 16% EBIT adj. 113 165 47% EBIT adj. margin % 16.0% 20.4% • US$ Commercial revenues up by 5% • Military revenues up by 14% • EBIT margin up due to business mix (lower new engine
Slide 6: Commercial MRO
Commercial MRO (in m €) 6M 2021 6M 2022 Change Revenues 1,352 1,711 26% EBIT adj. 77 124 61% EBIT adj. margin % 5.7% 7.3% • US$ Revenues up by 15% • EBIT margin up due to business mix (higher Independent volume vs. lower PW1100G MRO share) 6 27.07.2022 H1 2022 Results - Investor Relations
Slide 7: Guidance 2022 refined
Guidance 2022 refined Organic revenue Military Commercial OE Up high single digit % Up mid to high teens % Total Group Sales: EBIT adj. OE 5.2 – 5.4 bn € Up mid twenties % MRO Net Income adj. CCR Growth in line with EBIT adj. Mid to high Commercial Spares Commercial MRO double digit % Up mid teens %
Slide 8: Appendix
Appendix 8 27.07.2022 H1 2022 Results - Investor Relations
Slide 9: Group Order Book up 10%
Appendix Group Order Book up 10% +10% 24.6 bn€ 22.2 bn€ Order book 2021/12/31 Order book 2022/06/30 9 27.07.2022 H1 2022 Results - Investor Relations
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of July 27th, 2022 in m$ 1,380 1,000 960 340 2022 2023 2024 2025 Average hedge rate (€/US$) 1.16 1.17 1.16 1.12 10 27.07.2022 H1 2022 Results - Investor Relations
Slide 11: Profit & Loss
Appendix Profit & Loss (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change Revenues 1,015 1,289 27% 2,004 2,469 23% Total cost of sales -860 -1,093 -1,714 -2,118 Gross profit 155 197 27% 290 351 21% Gross profit margin % 15.3% 15.3% 14.5% 14.2% R&D according to IFRS -21 -23 -37 -47 SG&A -53 -66 -
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change EBIT reported 93 115 24% 168 183 9% Adjustment (PPA Depreciation & Amortization) 5 5 10 10 Adjustment (IAE Upshare) 6 6 11 12 Adjustment (Impairment) 0 33 0 85 EBIT adjusted 103 159
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change Revenues Group 1,015 1,289 27% 2,004 2,469 23% OEM Commercial 265 318 20% 515 596 16% OEM Military 100 106 5% 187 213 14% MRO 674 892 32% 1,352 1,711 26% Consolidation -24 -26 -50 -51 EBIT adjusted Group 1
Slide 14: Research & Development
Appendix Research & Development (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change Total R&D 55 72 30% 102 135 32% Customer funded R&D -16 -17 -6% -27 -34 -27% Company expensed R&D 39 54 39% 75 101 34% Capitalization of R&D -12 -23 -23 -37 Amortisation 6 9 12 15 Impairment 0 24 0 63 Total R&D im
Slide 15: Financial Result
Appendix Financial Result (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change Interest income 0 -1 <-300% 1 1 -2% Interest expense -8 -7 8% -16 -15 6% Interest result -8 -8 -6% -15 -15 6% Financial result on other items -2 -13 -7 -3 US$ / non cash valuations / others 0 -10 -4 3 Interest for pensi
Slide 16: MTU's Cash development January – June 2022
Appendix MTU’s Cash development January – June 2022 12 Free Cashflow: +168 -14 12 6 -155 318 6 -4 -158 722 733 Adjusted Non-operating exceptional items: +4 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing pa
Slide 17: Cash Flow
Appendix Cash Flow (in m €) 6M 2021 6M 2022 Change Net Income IFRS 103 120 16% Depreciation and amortization 134 206 Change in provisions and liabilities -42 100 Change in working capital 78 -168 Taxes -14 0 Interest, derivatives, others 24 61 Cash Flow from operating activities 283 318 13% Net Inve
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2021 30.06.2022 Change Bonds and notes 604 610 Convertible bonds 529 531 Revolving Credit Facility 0 0 Financial lease liabilities 176 138 Loans from related companies and third parties 0 4 Financial liabilities arising from program participation 142 144 thereof aris
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2021 30.06.2022 Change Inventories 1,380 1,407 Prepayments -398 -341 Receivables 2,073 2,470 Payables -1,654 -1,963 Working Capital 1,401 1,571 12% 19 27.07.2022 H1 2022 Results - Investor Relations
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2021 30.06.2022 Change Intangible assets 1,128 1,136 Property, plant, equipment 1,251 1,233 other non-current assets 1,664 1,593 Total non-current assets 4,043 3,962 -2% Current assets 4,260 4,682 10% Total assets 8,304 8,645 4% Equity 2,760 2,842 3% Non-current
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q2 2021 Q2 2022 Change 6M 2021 6M 2022 Change OEM 50 78 98 166 MRO 18 23 36 40 Total depreciation / amortization* 68 101 49% 134 207 54% PPA OEM 5 5 9 9 PPA MRO 1 0 1 1 IAE Upshare OEM 6 6 11 12 PPA depreciation / amortization & IAE Upshare amortizat
Slide 22: 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