Facc Ag · VIE:FACC
Facc — H1 2020 Earnings Presentation
24 slides from Facc's earnings presentation, August 2020
Slide 1: FACC AG Analyst Presentation & Outlook 2020
FACC AG ANALYST PRESENTATION & OUTLOOK 2020 August 2020 8/20/2020
Slide 2: Overview First Half Year 2020
OVERVIEW FIRST HALF YEAR 2020 Effects of the Corona crisis clearly visible on FACC > Q1 revenues and earnings according to plan > Liquidity of the company increased by > Fixed cost reduction program is taking effect. EUR 60 mill. by the COVID-19 KRR of > Establishing a COVID-19 Task Force to ensure
Slide 3: Key Figures H1/2020
KEY FIGURES H1/2020 COVID-19 impacts major key figures in H1/2020 292 mill. 98 mill. + 0,6 mill. Revenues Revenues Positive operating -26 % to previous In Q2 after 194 mill. in EBIT despite Corona year Q1/2020 environment - 37,4 mill. - 36,9 mill. 9 mill. Impairment due to Corona EBIT after one-offs
Slide 4: Strategic Projects
STRATEGIC PROJECTS Research, efficiency and new projects all according to plan > „FACC Innovation Center“ with new facilities in order to develop new production processes. > Vertical integration on track – In house production of lightweight metal parts and production of business jet interiors in ord
Slide 5: Global Aerospace Market
GLOBAL AEROSPACE MARKET
Slide 6: Global Market Overview
GLOBAL MARKET OVERVIEW Industry downsizing with extended rebound period > 80% unprecedented drop in traffic as a result from COVID-19 > Stressed financial situation at airlines > Recovery restarted but likely to be slow, uneven and with different regional dynamics > Fleet size re-adjustments and ear
Slide 7: Post Corona Airtravel Development
POST CORONA AIRTRAVEL DEVELOPMENT Change in daily air passenger volume Passenger volumes in China are on the rise but remain significantly below 2019. China lock down was 2 month before Europe, US or other nations. Air traffic in Europe and USA still suffer and probably will suffer longer compared t
Slide 8: Load Factor as of June 2020
LOAD FACTOR AS OF JUNE 2020 Routes are added but load factors still low Airplane Load Factors remain at all time lows in most regions. June domestic load factors on average at 62,9%. International load factor still weak at a level of 38,9%.
Slide 9: Market Recovery Assessment
MARKET RECOVERY ASSESSMENT 4-5 year “Step by Step” market recovery expected 2019 market level regained in 2024 or 2025. 75% growth forecasted for 2021 but RPK still 36% below Pre-Corona levels . Range of uncertainty still existing.
Slide 10: Customer Order Book as of 06/2020
CUSTOMER ORDER BOOK AS OF 06/2020 Still strong order-book, but also cancelations and delivery date deferrals AIRBUS BOEING AIRBUS BOEING 07/2020 06/2020 12/2019 12/2019 7.539 5.232 7.482 5.624 (+57) (-392) Airbus and Boeing are still holding 12.771 Firm Orders (Status as of July for AI and June for
Slide 11: Future Aircraft Rates
FUTURE AIRCRAFT RATES Market visibility is improving but still uncertainty in long term planning > Demand Alignment with customers ongoing and progressing well > Short term planning accuracy increased > Longer term forecast (2021+) still under coordination with some market uncertainty – Long Range A
Slide 12: Production Rate Development
Production Rate Development Production Rates for major FACC platforms Pre- versus Post Corona 5 Year Pre-Corona 5 Year Demand Post-Corona 11.776 AC Demand 8.768 AC Based in our assessment, Corona will lower the FACC demand driven airplanes by 3.008 between 2021 and 2025. Based on today’s available m
Slide 13: Corona Cash Action Plan
CORONA CASH ACTION PLAN Fixed- & Variable Cost Reduction and cash flow actions are launched Internal Measures Government Support 1. Right-sizing the company 1. Short Term Work (EUR 25 mill.) EUR 13 mill. from reduction in W/C 2. Fixed Cost Funding EUR 28 mill. from reduction in B/C 3. Tax Deferrals
Slide 14: H1 2020 Financial KPIs
H1 - 2020 Financial KPIs Aleš Stárek, CFO
Slide 15: FACC Group
FACC GROUP Revenues EBIT in EUR mill. in EUR mill. 11,0 0,5 394,9 292,1 7,7 -5,2 18,7 -36,9 H1 2019 H1 2020 EBIT H1 2019 EBIT H1 2020 Goodwill Fixed Assets Project Operational Revenues Revenues related EBIT impairment
Slide 16: Impairments
IMPAIRMENTS Impairments and changes in estimates in million EUR > Based on market development of FACC customers > Impairments calculated by NPV method
Slide 17: Segment Reporting H1 2020
SEGMENT REPORTING H1 2020 Revenue and EBIT decrease evenly distributed across all segments Aerostructures Engines & Nacelles Cabin Interiors in EUR mill. in EUR mill. in EUR mill. 99,1 73,0 120,0 15,1 11,0 12,5 4,0 2,5 2,6 -8,3 -14,0 Revenues EBIT Investments Amortization -14,7 Revenues EBIT Investm
Slide 18: Free Cashflow
FREE CASHFLOW Free cashflow impacted by safeguarding delivery to customer Free cashflow – H1 2019 Free cashflow – H1 2020 in EUR mill. in EUR mill. 5,5 -7,2 45,6 8,7 -17,0 27,4 22,2 -15,1 -9,0 5,9 5,4 -11,4 -5,2 -36,9 EBIT H1 2019 Depreciation EBITDA H1 Changes in Investments Others FCF H1 2019 EBIT
Slide 19: Financial Status as of June 30, 2020
FINANCIAL STATUS AS OF JUNE 30, 2020 Covenants in line as of 31.12.2019 and 30.06.2020 Next testing (semi-annual): 31.12.2020 Steps in order to ensure liquidity and financing underway Senior Debt and Cash (Key Elements) Committed Syndicated Loan Facilities 31.12.2019 30.06.2020 Total Used Avai
Slide 20: Outlook
OUTLOOK THE WAY FORWARD
Slide 21: Key Priorities
KEY PRIORITIES > Secure operations in a safe environment > Manage deliveries to our worldwide customers > Execute Cost Reduction plans started in 2019 and amended in 2020 > Right-size the company and match new production demand with cost structure > Strong focus on cash and preserve liquidity > Incr
Slide 22: Outlook 2020 and Beyond
OUTLOOK 2020 AND BEYOND The economic impact as well as the global development of the COVID 19 crisis requires an ongoing assessment of the situation. On the basis of the information currently available from FACC's main customers regarding short and medium-term construction rates, it must be assumed
Slide 23: Disclaimer
DISCLAIMER > This document contains forward-looking statements. Words such as ‘outlook’, 'believe', 'intend', 'anticipate', 'plan', 'expect', ‘objective’, ‘goal’, ‘estimate’, ‘may’, ‘will’ and similar expressions often identify these forward-looking statements. > Forward-looking statements are subje
Slide 24: Thank You for Your Interest
THANK YOU FOR YOUR INTEREST