Slide 1: Q2 2013 Results - MTU Aero Engines
Q2 2013 Results - MTU Aero Engines Conference Call with Investors and Analysts, 24 July 2013
Slide 2: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 2
Slide 3: Current Business Environment
Current Business Environment • FY13 numbers strongly driven by a 25% increase of OE sales from V2500, GP7000 and GEnX • MTU directly digests losses on OE sales through P&L no capitalization • Each engine sold today will generate profitable aftermarket business for 20+ years • Spare parts sales bel
Slide 4: New Guidance 2013
New Guidance 2013: (m€) FY 2012 Guidance 2013 old Guidance 2013 new Revenues 3,378.6 +10% - 12% ~3,700 (+10%) EBIT adj. 374.3 +10% - 12% ~375 EBIT adj. Margin 11.1% ~ 10% Net Income adj. * 233.4 +10% - 12% ~235 • Series growth now seen at upper end of guidance range at 25% • Spare parts growth now s
Slide 5: Management addresses the challenges…
Management addresses the challenges… • “Cash for Future” project launched to improve EBIT / Free Cash Flow situation - Target area: Total cost base - Project leader & team defined - Project leader reports directly to board - Cost savings potential & measures will be announced at Capital Markets Day
Slide 6: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 6
Slide 7: Business Highlights
Business Highlights • Orders of 1,3 bn$ at Paris Air Show - ongoing market success for GTF platforms • Continued strong revenue growth of 19% in H1 2013 Global Passenger Traffic Market Environment 30% • Global passenger traffic up 5.6% y-o-y in May 500 (4.3% ytd) 20% • Growth was led by Middle-East
Slide 8: Commercial OEM Business
Commercial OEM Business • Orders worth US$1.3 bn @Paris Air Show – 1.000 GTF, V2500 and GEnx • GTF success story continues • Over 4,500 GTF engines on order incl. options* • PW1100G for A320neo has successfully completed first Flight Test on May 15th • Expansion of manufacturing capacity on excellen
Slide 9: Commercial MRO Business and Military Business
Commercial MRO Business • Contract wins of US$ 760 m in H1/13 • New logistics center opened at Hanover facility • Aviation Week’s MRO Global Award for successful ramp up of GE90 Growth shop visits • MRO US$-revenues flat in Q2/13 y-o-y Military Business • Ramp up of TP400-D6 series production • Firs
Slide 10: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 10
Slide 11: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 2.000 +19% 300 15% 1.852 1.600 11,3% 1.559 9,3% 1.200 200 -2% 10% 800 176 172 100 05% 400 0 0 00% 6M 2012 6M 2013 6M 2012 6M 2013 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 60 2,17 2,50 140 2,07 50 120 -4% 2,00 40
Slide 12: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 12
Slide 13: OEM Segment
OEM Segment Order book 31/12/2012 30/06/2013 Change Order book (m€) 5,640.4 5,501.2 -2% Commercial Business (mUS$) 6,218.3 5,814.2 -6% Military Business (m€) 927.4 1,056.1 14% (m€) 6M 2012 6M 2013 Change Revenues 933.6 1,176.8 26% Commercial Business 703.0 953.6 36% Military Business 230.6 223.2 -3%
Slide 14: OEM Segment
OEM Segment (m€) 6M 2012 6M 2013 Change Revenues 933.6 1,176.8 26% Gross Profit 191.8 174.4 -9% Gross Profit Margin % 20.5% 14.8% R&D according to IFRS (P&L) 51.7 44.7 -14% EBIT adj. 122.5 116.4 -5% EBIT adj. Margin % 13.1% 9.9% • Gross profit impacted by business mix • R&D down by €7 m due to matur
Slide 15: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2012 30/06/2013 Change Contract volume (incl. order book) 7,704.2 7,932.1 3% (m€) 6M 2012 6M 2013 Revenues 641.2 691.1 8% Gross Profit 83.9 90.2 8% Gross Profit Margin % 13.1% 13.1% EBIT adj. 53.8 55.5 3% EBIT adj. Margin % 8.4% 8.0% • Contract volume up by 3% •
Slide 16: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 16
Slide 17: P&L Highlights
P&L Highlights (m€) 6M 2012 6M 2013 Change Revenues 1,559.0 1,852.2 19% EBIT adj. 175.8 171.7 -2% Interest Result -0.6 -5.8 Interests for pension provisions -12.4 -10.0 Financial Result * -13.0 -15.8 -22% EBT adj. * 162.8 155.9 -4% Tax (tax rate 32,6% ) -53.1 -50.8 Net Income adj. * 109.7 105.1 -4%
Slide 18: Free Cash Flow
Free Cash Flow Cash Flow (m€) Comments Cash Flow from operating activities 80 • Decreased by € 38 m to € 70.9 m (Q2 2012: € 108.9 m) 60 71 Cash Flow from investing activities* at € -46.7 m 40 49 (H1 2012: € -60.1 m) • Investment in PPE at € 32.1 m 20 24 (H1 2012: € 39.6 m) • Investment in intangible
Slide 19: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of July 24, 2013 (% of net exposure) (mUS$) 825 (=78%) 665 (=58%) 470 (=41%) 150 (=12%) 2013 2014 2015 2016 1.31 1.30 1.27 1.24 Average hedge rate (US$/EUR) 24 July 2013 Q2 2013 Results - Investor Relations 19
Slide 20: Agenda
Agenda • Guidance • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Appendix 24 July 2013 Q2 2013 Results - Investor Relations 20
Slide 21: Profit & Loss
Appendix Profit & Loss (m€) Q2 2012 Q2 2013 Change 6M 2012 6M 2013 Change Revenues 861.0 907.5 5% 1,559.0 1,852.2 19% Total Cost of Sales -724.1 -782.0 -1,278.4 -1,584.8 Gross Profit 136.9 125.5 -8% 280.6 267.4 -5% Gross Profit Margin 15.9% 13.8% 18.0% 14.4% R&D company funded -24.8 -17.8 -53.5 -46.
Slide 22: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. in m€ Q2 2012 Q2 2013 Change 6M 2012 6M 2013 Change Revenues Group 861.0 907.5 5% 1,559.0 1,852.2 19% OEM Commercial 406.2 465.2 15% 703.0 953.6 36% OEM Military 115.3 111.0 -4% 230.6 223.2 -3% MRO 348.0 339.1 -3% 641.2 691.1 8% Consolidation -8.5 -7.8 -15.8 -
Slide 23: Research & Development
Appendix Research & Development (m€) Q2 2012 Q2 2013 Change 6M 2012 6M 2013 Change Company expensed R&D 36.1 28.7 -21% 75.9 68.8 -9% OEM 35.0 27.4 73.7 66.6 MRO 1.2 1.3 2.2 2.2 Capitalization of R&D -11.3 -10.9 -22.4 -22.3 OEM -11.0 -10.7 -22.0 -21.9 MRO -0.4 -0.2 -0.4 -0.4 R&D according to IFRS 24.
Slide 24: Cash Flow
Appendix Cash Flow (m€) 6M 2012 6M 2013 Change Net Income IFRS 114.4 72.7 -36% Depreciation and amortization 67.0 80.2 Change in provisions * -34.3 -79.1 Change in Working Capital -18.0 -8.0 Taxes -1.8 0.3 Interest, derivatives, others -18.4 4.8 Cash Flow from operating activities 108.9 70.9 -35% Ca
Slide 25: Working Capital
Appendix Working Capital (m€) 31/12/2012 30/06/2013 Change Change in % Gross inventories 808.8 859.8 51.0 Prepayments -604.0 -574.4 29.6 Receivables 789.9 755.6 -34.3 Payables -797.7 -865.7 -68.0 Working Capital 197.0 175.3 -21.7 -11% 24 July 2013 Q2 2013 Results - Investor Relations 25
Slide 26: Net debt of € 485.1 m
Appendix Net debt of € 485.1 m Dec. 31, 2012 June 30, 2013 (m€) Financial assets 750 730 Derivative financial 29 assets 619 Cash and cash Equivalents / 600 16 288 Short-term financial securities Net debt Net debt Financial liabilities 450 300 € 391 m € 485 m Derivative financial 55 12 liabilities V2
Slide 27: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) Total depreciation / amortization Q2 2012 Q2 2013 6M 2012 6M 2013 MTU total 33.5 39.8 67.0 80.2 OEM 25.7 31.6 51.8 63.3 MRO 7.8 8.2 15.2 16.9 PPA depreciation / amortization Q2 2012 Q2 2013 6M 2012 6M 2013 MTU total 9.4 8.9 19.1 17.9 OEM 8.5 8.1 17.3
Slide 28: 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