Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — H1 2020 Earnings Presentation
23 slides from Mtu Aero Engines's earnings presentation, Aug 3, 2020
Slide 1: H1 2020 Results
H1 2020 Results Conference Call with Investors and Analysts 8/3/2020 – Investor Relations
Slide 2: H1 2020 Review
H1 2020 Review • IATA forecasts a 55% decline in passenger traffic for 2020 • Passenger traffic shows early signs of recovery • Lower demand in OEM and MRO reflected in Q2 2020 results • GTF retrofit work on track • Cost reduction measures in execution • Short time work across German sites • Personn
Slide 3: Financial Highlights H1 2020
Financial Highlights H1 2020 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 2,243 -9% 2,049 365 (16.3%) -39% 224 261 (10.9%) 235 -38% -47% 161 125 6M 2019 6M 2020 6M 2019 6M 2020 6M 2019 6M 2020 6M 2019 6M 2020 Aug 3 2020 H1 2020 Results - Investor Relations 3
Slide 4: OEM Segment
OEM Segment (in m €) 6M 2019 6M 2020 Change Revenues 989 814 -18% Military Business 216 183 -15% Commercial Business 773 631 -18% EBIT adj. 243 128 -47% EBIT adj. margin % 24.5% 15.7% • US$ Commercial revenues down by 21% • Military revenues down by 15% • EBIT margin down due to change in business m
Slide 5: Commercial MRO
Commercial MRO (in m €) 6M 2019 6M 2020 Change Revenues 1,287 1,272 -1% EBIT adj. 122 96 -21% EBIT adj. margin % 9.5% 7.6% • US$ Revenues down by 3% • EBIT margin down due to higher PW1100G MRO share Aug 3 2020 H1 2020 Results - Investor Relations 5 © MTU Aero Engines AG. The information contained h
Slide 6: MTU business segments 2020 market expectation
MTU business segments 2020 market expectation Scenarios modelled lead to a yet volatile outlook for 2020 • Basis are IATA assumptions regarding the Covid19 impact on commercial aviation in 2020 as published in July 2020 • Air traffic demand back on 2019 levels in 2024 • Domestic air travel will reco
Slide 7: Update on our Guidance 2020
Update on our Guidance 2020 Organic Growth Military revenues Slightly up Commercial OE Down mid to high twenties % Commercial Spares Down high twenties % Commercial MRO Down low to mid single digit % Revenues in € ~4,0 – 4,4 bn € EBIT adj. margin ~9 % - 10% Net Income adj. Decline in line with EBIT
Slide 8: Appendix
Appendix Aug 3 2020 H1 2020 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 almost stable
Appendix Group Order Book almost stable 19.8 bn€ -7% 18.4 bn€ Order book 2019/12/31 Order book 2019/06/30 Aug 3 2020 H1 2020 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 August 3, 2020 in m$ 1,330 1,060 740 440 40 2020 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.18 1.17 1.16 1.13 Aug 3 2020 H1 2020 Results - Investor Relations 10 © MTU Aero Engines AG. The information contained herein is proprie
Slide 11: Profit & Loss
Appendix Profit & Loss Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change Revenues 1,112 776 -30% 2,243 2,049 -9% Total cost of sales -897 -699 -1,790 -1,734 Gross profit 215 77 -64% 453 315 -31% Gross profit margin % 19.3% 10.0% 20.2% 15.4% R&D according to IFRS -11 -9 -28 -24 SG&A -52 -59 -105 -118 Oth
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change EBIT reported 165 30 -82% 340 199 -41% Adjustment (PPA Depreciation & Amortization) 5 5 11 10 Adjustment (IAE Upshare) 8 7 15 15 EBIT adjusted 178 42 -76% 365 224 -39% thereof P&L of companie
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change Revenues Group 1,112 776 -30% 2,243 2,049 -9% OEM Commercial 387 231 -40% 773 631 -18% OEM Military 111 86 -23% 216 183 -15% MRO 632 477 -24% 1,287 1,272 -1% Consolidation -19 -18 -33 -37 EBIT adjusted Group 178 42
Slide 14: Research & Development
Appendix Research & Development Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change Total R&D 54 39 -29% 112 98 -12% Customer funded R&D -10 -5 55% -16 -14 11% Company expensed R&D 44 34 -22% 96 84 -13% Capitalization of R&D -22 -9 -49 -33 Amortisation 5 6 10 11 Total R&D impact P&L (on EBIT) 27 31 16% 57
Slide 15: Financial Result
Appendix Financial Result Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change Interest income 1 1 -27% 4 2 -56% Interest expense -4 -4 12% -8 -8 6% Interest result -3 -3 7% -4 -6 -34% Financial result on other items -14 -13 -14 -16 US$ / non cash valuations / others -10 -11 -6 -11 Interest for pension pro
Slide 16: MTU's Cash development January – June 2020
Appendix MTU’s Cash development January – June 2020 168 Free Cashflow: +125 -4 -1 -104 -0 1 47 0 229 307 140 Adjusted Non-operating exceptional items: +1 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing paym
Slide 17: Cash Flow
Appendix Cash Flow (in m €) 6M 2019 6M 2020 Change Net Income IFRS 229 125 -45% Depreciation and amortization 121 137 Change in provisions and liabilities 77 -52 Change in working capital -41 28 Taxes 20 11 Interest, derivatives, others -1 -20 Cash Flow from operating activities 406 229 -44% Net Inv
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2019 30.06.2020 Change Bonds and notes 100 99 Convertible bonds 562 564 Promissory note 0 100 Financial liabilities to bank 40 30 thereof Revolving Credit Facility 0 0 thereof bonds and notes 30 30 Financial lease liabilities 147 163 Loans from related companies and
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2019 30.06.2020 Change Inventories 1,279 1,333 Prepayments -396 -422 Receivables 2,083 1,943 Payables -1,456 -1,373 Working Capital 1,510 1,482 -2% Aug 3 2020 H1 2020 Results - Investor Relations 19 © MTU Aero Engines AG. The information contained herein is pr
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2019 30.06.2020 Change Intangible assets 1,163 1,162 Property, plant, equipment 1,101 1,101 other non-current assets 1,892 1,786 Total non-current assets 4,155 4,049 -3% Current assets 3,610 3,727 3% Total assets 7,765 7,775 0% Equity 2,421 2,518 4% Non-current
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q2 2019 Q2 2020 Change 6M 2019 6M 2020 Change OEM 44 48 87 94 MRO 17 23 34 42 Total depreciation / amortization* 61 71 16% 121 136 13% PPA OEM 5 5 9 9 PPA MRO 1 1 1 1 IAE Upshare OEM 8 7 15 15 PPA depreciation / amortization & IAE Upshare amortization (EBIT a
Slide 22: 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 23: 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