Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2014 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Apr 29, 2014
Slide 1: Q1 2014 Results - MTU Aero Engines
Q1 2014 Results - MTU Aero Engines Conference Call with Investors and Analysts 29 April 2014
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 2
Slide 3: Business Highlights
Business Highlights • IATA passenger traffic up ~7% ytd. in February 2014 • Guidance 2014 confirmed • Dividend proposal of € 1.35 • GTF engine programs on track • Preparation for production ramp up under way 3 April 29, 2014 Investor Relations 3
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 4
Slide 5: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 1000 906 +1% 913 9.7% 9.7% 10% 120 750 88 +1% 89 8% 500 80 5% 250 40 3% 0 0 0% Q1 2013 Q1 2014 Q1 2013 Q1 2014 Net Income adj. / EPS adj. (m€ / €) * Free Cash Flow (m€) 80 1.09 1.10 15 1,0 60 56 +1% 56 10 40 0,5 5 20 2 stable 1
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of April 29, 2014 (% of net exposure) (mUS$) 725 (=72%) 530 (=50%) 270 20 (=24%) (=2%) 2014 2015 2016 2017 1.31 1.28 1.30 1.28 Average hedge rate (US$/EUR) April 29, 2014 Investor Relations 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 7
Slide 8: Commercial OEM Business / Military Business
Commercial OEM Business • Over 5,300 GTF engines (incl. options) on order • Geared Turbofan test program on track • Expansion of MTU Aero Engines Polska • New logistics center in Munich Military Business • 1st A400M delivered to Turkey • GE38 program on track • Military revenues flat in Q1 14 April
Slide 9: OEM Segment
OEM Segment Order book 31/12/2013 31/03/2014 Change Order book in m€ 5,403.6 5,834.3 8% Commercial business in mUS$ 6,185.8 6,774.9 10% Military business in m€ 918.2 920.7 0% (in m€) Q1 2013 Q1 2014 Change Revenues 600.6 617.1 3% Commercial business 488.4 500.5 2% Military business 112.2 116.6 4% •
Slide 10: OEM Segment
OEM Segment (in m€) Q1 2013 Q1 2014 Change Revenues 600.6 617.1 3% Gross profit 93.1 94.1 1% Gross profit margin 15.5% 15.2% R&D according to IFRS -28.0 -20.8 -26% EBIT adj. 59.0 60.8 3% EBIT adj. margin 9.8% 9.9% • Gross Profit margin flat • R&D decreased by € 7 m • EBIT margin flat April 29, 2014
Slide 11: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 11
Slide 12: Commercial MRO Business
Commercial MRO Business • MRO contract wins of US$ 339 m in Q1 14 • New Contract wins with Biman, Conviasa and Saudi Aramco • MTU Maintenance lease Services B.V. starts operations • MTUPlus Mature Engine Solutions launched • Stable revenues on a high comparison base April 29, 2014 Investor Relations
Slide 13: Commercial MRO Business
Commercial MRO Business (in mUS$) 31/12/2013 31/03/2014 Change Contract volume 5,476.4 5,512.6 1% (in m€) Q1 2013 Q1 2014 Change Revenues 313.1 303.6 -3% Gross profit 39.5 35.1 -11% Gross profit margin 12.6% 11.6% EBIT adj. 28.4 27.0 -5% EBIT adj. margin 9.1% 8.9% • Contract volume stable at US$ 5.5
Slide 14: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 14
Slide 15: Guidance 2014 confirmed
Guidance 2014 confirmed in m€ FY 2013 FY 2013 adjusted for Guidance 2014 MTU Zhuhai * Revenues 3,741.7 3,574.1 ~3,750 *) EBIT adj. 377.3 373.1 ~ stable 10.1% 10.4% Net income adj. 232.1 235.7 ~ stable *) from 2014 on MTU Zhuhai consolidated at equity (new IFRS 11 rule) • Series revenues expected to
Slide 16: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix April 29, 2014 Investor Relations 16
Slide 17: Profit & Loss
Appendix Profit & Loss (in m€) Q1 2013 Q1 2014 Change Revenues 906.0 913.0 1% Total Cost of Sales -771.8 -782.9 Gross Profit 134.2 130.1 -3% Gross Profit Margin 14.8% 14.2% R&D company funded -28.7 -21.7 SG&A -38.1 -37.8 Other operating income (expense) 1.4 2.8 Operating income from investments 5.0
Slide 18: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m€) Q1 2013 Q1 2014 Change Revenues Group 906.0 913.0 1% OEM Commercial 488.4 500.5 2% OEM Military 112.2 116.6 4% MRO 313.1 303.6 -3% Consolidation -7.7 -7.7 EBIT adj. Group 88.3 89.0 1% OEM (Commercial / Military) 59.0 60.8 3% MRO 28.4 27.0 -5% Consolida
Slide 19: Research & Development
Appendix Research & Development (in m€) Q1 2013 Q1 2014 Change Company expensed R&D 40.1 33.6 -16% OEM 39.2 32.7 MRO 0.9 0.9 Capitalization of R&D -11.4 -11.9 OEM -11.2 -11.9 MRO -0.2 0.0 R&D according to IFRS 28.7 21.7 -24% Customer funded R&D 13.8 9.7 Total R&D 53.9 43.3 -20% April 29, 2014 Invest
Slide 20: Cash Flow
Appendix Cash Flow (in m€) Q1 2013 Q1 2014 Change Net Income IFRS 36.8 46.8 27% Depreciation and amortization 39.8 37.9 Change in provisions * 9.8 -1.2 Change in Working Capital -65.4 27.9 Taxes 0.8 -74.3 Interest, derivatives, others 6.5 -1.1 Cash Flow from operating activities 28.3 36.0 27% Cash F
Slide 21: Working Capital
Appendix Working Capital (in m€) 31/12/2013 31/03/2014 Change Change in % Gross Inventories 745.2 714.1 -31.1 Prepayments -517.3 -538.6 -21.3 Receivables 784.9 760.4 -24.5 Payables -826.5 -777.5 49.0 Working Capital 186.3 158.4 -27.9 -15% April 29, 2014 Investor Relations 21
Slide 22: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q1 2013 Q1 2014 Total depreciation / amortization MTU total 39.8 37.9 OEM 31.7 30.8 MRO 8.1 7.1 PPA depreciation /amortization MTU total 9.0 6.2 OEM 8.1 5.6 MRO 0.9 0.6 Depreciation / amortization w/o PPA MTU total 30.8 31.7 OEM 23.6 25.2 MRO
Slide 23: Net debt of € 397 m
Appendix Net debt of € 397 m Dec. 31, 2013 March 31, 2014 (m€) Financial assets 750 677 Cash and cash 650 Equivalents / 57 27 Other financial assets 600 Net debt 271 Net debt 265 450 € 385 m € 397 m 300 265 280 Financial liabilities Euro Bond & Private Placement 115 125 V2500 / IAE Flight-Hour- 352
Slide 24: Key figures 2013 adjusted for MTU Zhuhai “at Equity Method”
Appendix Key figures 2013 adjusted for MTU Zhuhai “at Equity Method” (in m€) Q1 2013 Q2 2013 Q3 2013 Q4 2013 H1 2013 9M 2013 FY 2013 Revenues Group 906.0 868.9 884.7 914.5 1.774.9 2.659.6 3.574.1 OEM Commercial 488.4 465.2 449.3 488.4 953.6 1,402.9 1,891.3 OEM Military 112.2 111.0 144.8 132.7 223.2
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