Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2018 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Feb 20, 2019
Slide 1: Preliminary Full Year Results 2018
Preliminary Full Year Results 2018 Conference Call with Investors & Analysts 20 February 2019 - Investor Relations
Slide 2: Business Highlights FY 2018
Business Highlights FY 2018 • Passenger traffic continues to outperform historical average • GTF ramp up targets in 2018 fully achieved • Strong order momentum for GTF engines in 2018 • GTF powered Embraer E2-Jets successfully entered into market • Dassault Aviation chose PW800 to power new Falcon 6
Slide 3: Business Highlights FY 2018
Business Highlights FY 2018 • Strong aftermarket demand • Contract wins of 4.5 bn US$ for our independent MRO business • Expansion of our MRO capacity ongoing • Order book at new record level • Dividend proposal at 2.85 Euro per share 20 February 2019 Preliminary Full Year Results 2018 - Investor Re
Slide 4: Financial Highlights 2018
Financial Highlights 2018 Revenues (m€) EBIT adj / EBIT adj. Margin (m€ / %) 5,000 800 14.7% 14.7% 16% +17% 4,567 +17% 4,000 600 671 12% 3,897 3,000 573 400 8% 2,000 200 4% 1,000 0 0 0% FY 2017 FY 2018 FY 2017 FY 2018 Net income adj. / EPS adj. (m€ / €) Free Cash Flow (m€) 600 10.00 250 9.29 7.87 50
Slide 5: Guidance 2018 exceeded
Guidance 2018 exceeded Guidance 2018 Actuals 2018 Revenues ~ 4.4 bn€ 4,567 m€ EBIT adj. ~ 660 m€ 671 m€ Net Income adj. ~ 470 m€ 479 m€ CCR* 40% - 50% 42% (203 m€) 20 February 2019 Preliminary Full Year Results 2018 - Investor Relations 5 © MTU Aero Engines AG. The information contained here
Slide 6: OEM Segment
OEM Segment (m€) FY 2017 FY 2018 Change Revenues 1,734.8 2,033.9 17% Commercial Business 1,289.9 1,602.8 24% Military Business 444.9 431.1 -3% EBIT adj. 378.1 431.4 14% EBIT adj. margin % 21.8% 21.2% • US$ Commercial Business growth: ~+30% • Military revenues almost stable • EBIT margin slightly dow
Slide 7: Commercial MRO
Commercial MRO (m€) FY 2017 FY 2018 Change Revenues 2,285.3 2,799.8 23% EBIT adj. 194.4 239.7 23% EBIT adj. margin % 8.5% 8.6% • MRO revenues at new record level • US$ revenues up by 28% • 3rd consecutive year with US$ growth >20% • EBIT margin stable 20 February 2019 Preliminary Full Year Results 2
Slide 8: Guidance 2019: Further growth of EBIT adj. and Free Cash Flow expected
Guidance 2019: Further growth of EBIT adj. and Free Cash Flow expected 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 Income adj. Growth in
Slide 9: Appendix
Appendix 20 February 2019 Preliminary Full Year Results 2018 - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: Group Order Book up 18%
Appendix Group Order Book up 18 % 17.6 bn€ +18% 14.9 bn€ Order book 2017/12/31 Orderbook 2018/12/31 20 February 2019 Preliminary Full Year Results 2018 - Investor Relations 10 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 11: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of February 20, 2019 (% of net exposure) in m$ 1,340 (=99%) 1,190 (=79%) 710 (=41%) 2018 2019 2020 Average hedge 1.16 1.18 1.20 rate (US$/€) 20 February 2019 Preliminary Full Year Results 2018 - Investor Relations 11 © MTU Aero Engines AG. T
Slide 12: Profit & Loss
Appendix Profit & Loss (m€) Q4 2017 Q4 2018 Change FY 2017 FY 2018 Change Revenues 996.6 1,248.4 25% 3,897.4 4,567.1 17% Total Cost of Sales -813.0 -1,035.8 -3,186.5 -3,715.8 Gross Profit 183.6 212.6 16% 710.9 851.3 20% Gross Profit margin 18.4% 17.0% 18.2% 18.6% R&D according to IFRS -19.1 -18.1 -5
Slide 13: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (m€) Q4 2017 Q4 2018 Change FY 2017 FY 2018 Change EBIT reported 119.7 149.7 25% 521.2 620.2 19% Adjustment (PPA Depreciation & Amortization) 5.3 5.3 21.1 21.0 Adjustment (IAE Upshare) 7.6 7.5 30.2 30.2 EBIT adj. 132.6 162.5 23% 572.5 67
Slide 14: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q4 2017 Q4 2018 Change FY 2017 FY 2018 Change Revenues Group 996.6 1,248.4 25% 3,897.4 4,567.1 17% OEM Commercial 346.8 399.1 15% 1,289.9 1,602.8 24% OEM Military 139.7 128.0 -8% 444.9 431.1 -3% MRO 557.8 780.1 40% 2,285.3 2,799.8 23% Consolidation -47.7
Slide 15: Research & Development
Appendix Research & Development (m€) Q4 2017 Q4 2018 Change FY 2017 FY 2018 Change Total R&D 37.3 53.5 43% 199.7 201.2 1% Customer funded R&D -5.6 -8.1 -45% -31.9 -23.9 25% Company expensed R&D 31.7 45.4 43% 167.8 177.3 6% Capitalization of R&D -4.6 -18.5 -91.2 -81.6 Amortisation 5.3 4.2 14.2 15.3 T
Slide 16: Financial Result
Appendix Financial Result (m€) Q4 2017 Q4 2018 Change FY 2017 FY 2018 Change Interest income 1.5 2.6 73% 5.8 7.6 31% Interest expense -6.0 -1.4 77% -13.0 -8.3 36% Interest result -4.5 1.2 127% -7.2 -0.7 90% Financial result on other items -14.7 -2.1 -35.9 -12.2 US$ / non cash valuations / others -11
Slide 17: MTU's Cash development January – December 2018
Appendix MTU’s Cash development January – December 2018 -7.1 Free Cashflow: +202.9 -336.1 594.7 0.0 -79.1 23.4 -262.7 Adjusted Non-operating -3.0 55.7 106.1 exceptional items: -55.7 99.0 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating i
Slide 18: Cash Flow
Appendix Cash Flow (m€) FY 2017 FY 2018 Change Net Income IFRS 358.7 453.3 26% Depreciation and amortization 193.5 200.5 Change in provisions and liabilities 192.2 184.5 Change in working capital -191.0 -320.4 Taxes -25.2 17.3 Interest, derivatives, others -67.3 59.5 Cash Flow from operating activit
Slide 19: Net financial debt
Appendix Net financial debt (m€) 31/12/2017 31/12/2018 Change Bonds and notes 100.0 100.2 Convertible bond 478.5 482.5 Financial liabilities to bank 108.2 54.4 thereof Revolving Credit Facility 78.1 14.5 thereof Note Purchase Agreement 30.1 30.1 Finance lease liabilities 11.5 10.0 Loans from third p
Slide 20: Working capital
Appendix Working capital (m€) 31/12/2017 31/12/2018 Change Change in % Inventories 845.1 995.8 150.7 Prepayments -306.1 -292.9 13.2 Receivables 1,617.8 1,995.6 377.8 Payables -1,109.5 -1,330.8 -221.3 Working Capital 1,047.3 1,367.7 320.4 31% 20 February 2019 Preliminary Full Year Results 2018 - Inve
Slide 21: Balance Sheet
Appendix Balance Sheet (m€) 31/12/2017 31/12/2018 Change Intangible assets 1,032.5 1,072.7 Property, plant, equipment 735.5 799.3 other non-current assets 1,773.8 1,843.9 Total non-current assets 3,541.8 3,715.9 5% Current assets 2,683.4 3,134.9 17% Total assets 6,225.2 6,850.8 10% Equity 1,841.3 2,
Slide 22: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (m€) Q4 2017 Q4 2018 FY 2017 FY 2018 Total depreciation / amortization* OEM 46.2 43.1 156.1 162.0 MRO 9.0 13.6 37.4 38.5 MTU total 55.2 56.7 193.5 200.5 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) PPA OEM 4.6 4.7 18.6 18.6 PP
Slide 23: Guidance for PPA and IAE Upshare Amortization; R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (m€) 2017 2018 2019E 2020E 2021E 2022E 2023E PPA depreciation / amortization 21.1 21.0 ~21 ~21 ~21 ~21 ~19 IAE Upshare 30.2 30.2 ~30 ~30 ~30 ~30 ~30 Adjustments 51 51 ~51 ~51 ~51 ~51 ~49 Guidance for R&D Amortization (m€) 2017 2018 2019E 2020E 2
Slide 24: 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 25: 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