Figeac Aero Sa · EURONEXT:FGA
Figeac Aero Sa — H1 FY2024/25 Earnings Presentation
37 slides from Figeac Aero Sa's earnings presentation, Dec 12, 2024
Slide 1: The leading partner for major aerospace manufacturers
The leading partner for major aerospace manufacturers 1H24/25 results presentation 12 December 2024
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: Opening statement: FIGEAC AÉRO continues to deliver on its targets
O p e n i n g st a t e m e n t FIGEAC AÉRO continues to deliver on its targets PILOT 28 +12.0% €28.3m Solid execution Strong upside Organic revenue growth FCF at record level Set to reach / surpass targets Deployment in line or in for 4th consecutive year advance of expectations +190 bp Current EBIT
Slide 4: Flight plan
Flight plan 1. GROUP OVERVIEW 2. MARKET DYNAMICS 3. FINANCIAL HIGHLIGHTS 4. PILOT 28 UPDATE 5. OUTLOOK
Slide 5: Group overview
Sommaire 01 Group overview
Slide 6: FIGEAC AÉRO in a nutshell
01 Group overview FIGEAC AÉRO in a nutshell Full coverage of Strategic T1/T2 supplier All types of metallic parts the value chain Positions on all main All aerospace metals aerospace programmes Across the whole aircraft Strong positions on One-stop shop for Global coverage Combination of tech, Compr
Slide 7: A steadily improving financial performance over time
01 Group overview 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 & global f
Slide 8: Market dynamics
SACALAC PUTS GROUPE Market dynamics
Slide 9: Air traffic resiliency supported by mega-trends
02 Market dynamics Air traffic resiliency supported by mega-trends RPKs in millions 25000 2024 YTD Air traffic Projection growth drivers ▪ Passenger traffic 2024-2043 +10,8% ▪ GDP growth ▪ Capacity ▪ Passenger traffic (+2.6% pa) 20000 +9.3% +4.7% pa ▪ Load factor ▪ Emerging 83.5% (+1.2 pt) ▪ Cargo t
Slide 10: Driving ever increasing projected production rates
02 Market dynamics Driving ever increasing projected production rates Net orders & backlog YTD 75 / mo 60,0 A320f 50 / mo Narrowbody 83% 40,0 8,697 742 net orders (vs 643 deliveries) 20,0 14 / mo A220 A330 6% A350 3% 8% - 12 / mo B737 10,0 78% Widebody 6,176 335 net orders (vs 295 deliveries) 5,0 A3
Slide 11: A paradigm change in OEM / subcontractor relations
02 Market dynamics A paradigm change in OEM / subcontractor relations ▪ Dependent on critical suppliers ▪ Increased outsourcing ▪ Need to reduce backlog duration ▪ Supply chain competition OEM → Focus on securing ramp-up and → Optimize prices and cash profile supply chain robustness COVID ▪ Numerous
Slide 12: Financial highlights
Sommaire 03 Financial highlights
Slide 13: 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 14: 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 2% +24.3% org. +23.0% org. EMBRAER 2% COLLINS 2% AIRBUS 13% -12.6% SPIR
Slide 15: 1H24/25 – Current EBITDA
03 Financial highlights 1H24/25 – Current EBITDA Current EBITDA over the period (€m) Current EBITDA €25.8m, +30.0% 12.9% ▪ Increased revenue ▪ Tight cost control ▪ Improvements in Mexico Current EBITDA margin 12.9%, +190bp 11.0% Stronger contribution expected in H2: ▪ Increased revenue ▪ Impac
Slide 16: 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 17: 1H24/25 - Financial situation
03 Financial highlights 1H24/25 - Financial situation Cash stable at a comfortable level Cash Net debt Fixed rate debt Average cost Significant debt reduction €86.5m €275.5m1 ~ 77% 5.5%1 Next milestones include: Debt amortization schedule & projected leverage3 ▪ Leverage 3x as a threshold ▪ Ta
Slide 18: PILOT advances
Sommaire 04 PILOT 28 advances
Slide 19: PILOT 28: a new strategic horizon on March 2028
04 P I L O T 28 a d v a n c e s PILOT 28: a new strategic horizon on March 2028 P I L O T Performance Optimisation of financial Transformation Innovation Lower impact of sales performance of model ▪ 17 new agreements ▪ Continued R&D on ▪ 3 major facilities ▪ Significant new price ▪ Reinforcement of
Slide 20: Backlog as at 30 September 2024
04 P I L O T 28 a d v a n c e s Backlog as at 30 September 2024 OTHER CLIENTS 10% Main highlights RAFALE 2% LEGACY 450 2% ▪ Higher medium-to-long-term rates E2 3% A320 33% on main commercial programmes GLOBAL 7500 3% ▪ Positive LEAP contribution despite A330 3% short-term drop in LEAP-1B rates €4.7b
Slide 21: Outlook
Sommaire 05 Outlook
Slide 22: Short-term & medium-term guidance
05 Outlook Short-term & medium-term guidance FY24/25e FY27/28e 1 REVENUE €420-440m €550-600m >16% 2 CURRENT EBITDA €67-73m of revenue €30-35m 3 FREE CASH FLOWS (vs €20 – 28m) ~€50m 4 LEVERAGE ~4 2-2.5 1H24/25 results | December 2024 22 GROUPE
Slide 23: Ideally positioned to continue to deliver profitable growth
05 Outlook 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 cap
Slide 24: Q&A
ge ee GROUPE Q&A
Slide 25: Appendices
Sommaire Appendices
Slide 26: 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 27: 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 28: 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 29: 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 30: WCR update
Appendices WCR update 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 1H24/25 results | December 2024 30 GROUPE
Slide 31: PILOT 28’s trajectory: consolidation and development of the Group’s leadership
Appendices PILOT 28’s trajectory: consolidation and development of the Group’s leadership Revenue trend over the course of the plan (€m) ~€170m Build rates 550 - 600 €80-€100m New business ~€30m Commercial / Defence / Services Adjustments Attrition, price, lags in build rate increase 342 2023-2028 C
Slide 32: PILOT 28’s trajectory: mechanic impact of the production rate
Appendices PILOT 28’s trajectory : mechanic impact of the production rate of the main aerospace programmes Revenue impact of the production rate increases over the course of the plan (€m) ~170 ~20 ~20 ~55 ~75 An increase in revenue largely secured by the Group’s order backlog Note: figures presented
Slide 33: PILOT 28’s trajectory: acceleration of deleveraging (1/2)
Appendices PILOT 28’s trajectory: acceleration of deleveraging (1/2) FCF trend over the course of the plan (€m) 6-8% of revenue Lower CAPEX WCR ~50 Optimisation initiatives / client financing / sub- contracting >16% EBITDA Increased activity / efficiency initiatives EBITDA to FCF conversion > 50% 5.
Slide 34: PILOT 28’s trajectory: acceleration of deleveraging (2/2)
Appendices PILOT 28’s trajectory: acceleration of deleveraging (2/2) Financial leverage trend over the course of the plan (net debt / EBITDAc) Higher EBITDA 7.0 Lower net debt Net FCF > 0 since FY2023/24 2.0 – 2.5 ~4 in FY 2024/25 ~3 in FY 2025/26 FY2027/28: a deleveraged financial structure with a
Slide 35: 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 36: 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 37: 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