MTU Aero Engines AG · XETR:MTX
MTU Aero Engines — Q3 2012 Earnings Presentation
25 slides from MTU Aero Engines's earnings presentation, Oct 23, 2012
Slide 1: Q3 2012 Results MTU Aero Engines
Q3 2012 Results MTU Aero Engines Conference Call with Investors and Analysts October 23, 2012
Slide 2: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 2
Slide 3: Business Highlights
Business Highlights • Guidance 2012 confirmed • IAE upshare numbers in line with our expectations • Total commercial aftermarket up more than 10% (incl. Com. MRO + Com. Spares) Global Passenger Traffic Market Environment 30% • Global Passenger traffic up by 5.1% (y-o-y) in 500 August (5.8% ytd) 20%
Slide 4: Commercial OEM Business
Commercial OEM Business • Successful Farnborough Air Show with contract wins worth €1.3 bn • Over 2,900 GTF engines on firm order or optioned • GTF development program accumulated ~4,000 testing hours • PW1500G (CSeries) on track for certification by end of 2012 • PW1100G (A320 neo): First LPT shipp
Slide 5: Commercial MRO Business and Military Business
Commercial MRO Business • Contract wins of roughly €1 bn in 9M 2012 • Induction buffer on high level • MRO revenues organically up by 14% in Q3 • MRO expected to reach upper area of guidance range Military Business • Updated TP400-D6 engine delivered to Airbus Military • Military revenues up 6% in Q
Slide 6: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 6
Slide 7: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 3,000 11.9% 300 11.3% +19% 278 2,468 10.0% 2,000 245 2,067 200 +13% 5.0% 1,000 100 0 0 0.0% 9M 2011 9M 2012 9M 2011 9M 2012 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) +13% 3,42 180 3,03 173 3,00 100 110 148 120 +1
Slide 8: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 8
Slide 9: OEM Segment
OEM Segment Order book 31/12/2011 30/09/2012 Change Order book (m€) 4,776.6 5,786.4 21% Commercial Business (mUS$) 4,849.7 6,275.3 29% Military Business (m€) 1,028.5 933.1 -9% (m€) 9M 2011 9M 2012 Change Revenues 1,291.3 1,490.3 15% Commercial Business 970.0 1,141.9 18% Military Business 321.3 348.4
Slide 10: OEM Segment
OEM Segment (m€) 9M 2011 9M 2012 Change Revenues 1,291.3 1,490.3 15% Gross Profit 291.4 293.7 1% Gross Profit Margin % 22.6% 19.7% R&D according to IFRS (P&L) 92.6 76.8 -17% EBIT adj. 182.1 194.1 7% EBIT adj. Margin % 14.1% 13.0% • Gross profit margin affected by strong OE growth • R&D down by € 16
Slide 11: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2011 30/09/2012 Change Contract volume (incl. order book) 7,453.5 7,660.9 3% (m€) 9M 2011 9M 2012 Revenues 798.7 1,001.8 25% Gross Profit 109.9 134.8 23% Gross Profit Margin % 13.8% 13.5% EBIT adj. 65.9 85.6 30% EBIT adj. Margin % 8.3% 8.5% • Contract volume rema
Slide 12: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 12
Slide 13: P&L Highlights
P&L Highlights (m€) 9M 2011 9M 2012 Change Revenues 2,067.3 2,468.0 19% EBIT adj. 245.3 278.0 13% Interest Result -9.7 -2.6 Interests for pension provisions -16.4 -18.6 Financial Result * -26.1 -21.2 19% EBT adj. * 219.2 256.8 17% Tax (tax rate 32,6% ) -71.5 -83.7 Net Income adj. * 147.7 173.1 17% E
Slide 14: Free Cash Flow
Free Cash Flow Cash Flow (m€) Comments Cash Flow from operating activities • Decreased by € 27.1 m to €160.8m (9M 11: €187.9 m) 150 160.8 -94.5 Cash Flow from investing activities • Investment in property, plant and equipment at €63.8 m (9M 11: €57.1 m) 100 109.9 Free Cash Flow • At € 66.3 m (9M 11:
Slide 15: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of October 23, 2012 (% of net exposure) (mUS$) 875 (=88%) 785 (=66%) 575 (=46%) 310 (=24%) 90 (=6%) 2012 2013 2014 2015 2016 1.31 1.32 1.30 1.26 1.20 Average hedge rate (US$/EUR) 23 October 2012 Investor Relations 15
Slide 16: Net debt of €412 m
Net debt of € 412 m Dec. 31, 2011 Sept 30, 2012 (m€) 650 618 Financial assets 600 34 Derivative financial assets 550 Short-term financial 500 securities 450 Cash and cash 281 equivalents Net debt 400 Net debt € 412m Financial liabilities 350 € 12 m Derivative financial 300 262 liabilities 250 40 206
Slide 17: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 17
Slide 18: Guidance 2012 confirmed
Guidance 2012 confirmed (m€) FY 2011 Guidance 2012 Revenues 2,932.1 3,300.0 EBIT adj. 328.0 370.0 EBIT adj. Margin 11.2% 11.2% Net Income adj. * 196.6 225.0 * w/o market-to-market valuations of US$, Nickel, Options and others 23 October 2012 Investor Relations 18
Slide 19: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2012 Investor Relations 19
Slide 20: Profit & Loss
Appendix Profit & Loss (m€) Q3 2011 Q3 2012 Change 9M 2011 9M 2012 Change Revenues 720.8 909.0 26% 2,067.3 2,468.0 19% Total Cost of Sales -577.2 -754.2 -1,662.4 -2,032.6 Gross Profit 143.6 154.8 8% 404.9 435.4 8% Gross Profit Margin 19.9% 17.0% 19.6% 17.6% R&D company funded -36.9 -25.9 -96.5 -79.4
Slide 21: Research & Development
Appendix Research & Development (m€) Q3 2011 Q3 2012 Change 9M 2011 9M 2012 Change Company expensed R&D 42.2 37.4 -11% 116.0 113.3 -2% OEM 40.6 36.4 109.6 110.1 MRO 1.6 1.0 6.4 3.2 Capitalization of R&D -5.3 -11.5 -19.5 -33.9 OEM -5.1 -11.3 -17.0 -33.3 MRO -0.2 -0.2 -2.5 -0.6 R&D according to IFRS 3
Slide 22: Cash Flow
Appendix Cash Flow (m€) 9M 2011 9M 2012 Change Net Income IFRS 116.7 160.4 37% Depreciation and amortization 97.5 106.3 Change in provisions * -5.9 -14.2 Change in Working Capital 36.9 -74.0 Taxes -67.0 1.5 Interest, derivatives, others 9.7 -19.2 Cash Flow from operating activities 187.9 160.8 -14%
Slide 23: Working Capital
Appendix Working Capital (m€) 31/12/2011 30/09/2012 Change Change in % Gross inventories 823.8 819.6 -4.2 Prepayments -715.0 -611.5 103.5 Receivables 785.3 725.3 -60.0 Payables -792.6 -787.7 4.9 Working Capital 101.5 145.7 44.2 44% 23 October 2012 Investor Relations 23
Slide 24: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) Total depreciation / amortization Q3 2011 Q3 2012 9M 2011 9M 2012 MTU total 33.3 39.3 97.5 106.3 OEM 25.9 31.7 75.3 83.5 MRO 7.4 7.6 22.2 22.8 PPA depreciation / amortization Q3 2011 Q3 2012 9M 2011 9M 2012 MTU total 10.5 9.4 31.8 28.5 OEM 9.6 8.5 29.
Slide 25: 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