Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2020 Earnings Presentation
24 slides from Mtu Aero Engines's earnings presentation, Feb 18, 2021
Slide 1: Preliminary Full Year Results 2020
Preliminary Full Year Results 2020 Conference Call with Investors & Analysts 18 February 2021 - Investor Relations
Slide 2: Review 2020
Review 2020 • Passenger traffic declined by 66% • Cargo traffic robust • IATA forecasts passenger traffic to be up 50% in 2021 • Low flight activity resulted in reduced aircraft deliveries and aftermarket demand • Surplus capacity used to accelerate GTF MRO work • GE9x program assets – partial write
Slide 3: Key Financials 2020
Key Financials 2020 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 4,628 -14% 3,977 757 (16.4%) -45% 538 416 (10.5%) -45% 358 294 -71% 105 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 18 February 2021 Preliminary Full Year Results 2020 - Inve
Slide 4: Revised Guidance 2020 achieved
Revised Guidance 2020 achieved Guidance 2020 Actuals 2020 Revenues ~ 4.0 - 4.2 bn€ ~ 4.0 bn€ EBIT adj. margin ~ 10% (~400 - 420 m€) 10.5% (416 m€) Net Income adj. Decline in line with EBIT adj. 295 m€ CCR* Achieve a positive FCF 36% (105 m€) 18 February 2021 Preliminary Full Year Results 202
Slide 5: OEM Segment
OEM Segment (in m €) FY 2019 FY 2020 Change Revenues 1,996 1,535 -23% Military Business 459 483 5% Commercial Business 1,537 1,052 -32% EBIT adj. 496 280 -44% EBIT adj. margin % 24.8% 18.2% • US$ Commercial revenues down by 30% • Military revenues up by 5% • EBIT margin down due to change in busines
Slide 6: Commercial MRO
Commercial MRO (in m €) FY 2019 FY 2020 Change Revenues 2,711 2,522 -7% EBIT adj. 261 136 -48% EBIT adj. margin % 9.6% 5.4% • US$ Revenues down by 5% • EBIT margin down due to higher PW1100G MRO share and bad debt provisions 18 February 2021 Preliminary Full Year Results 2020 - Investor Relations 6
Slide 7: Guidance 2021
Guidance 2021 Organic Growth Military revenues Slightly up Commercial OE Slightly up Commercial Spares Up low to mid single digit MRO up ~15 to 25 % Commercial MRO GTF contribution strongly growing Total Group Sales 4.2 – 4.6 bn € EBIT adj. (margin) 9.5 – 10.5% Net Income adj. In line with EBIT adj.
Slide 8: Appendix
Appendix 18 February 2021 Preliminary Full Year Results 2020 - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: Group Order Book in USD almost stable
Appendix Group Order Book in USD almost stable 19.8 bn€ -6% 18.6 bn€ Order book 2019/12/31 Order book 2020/12/31 18 February 2021 Preliminary Full Year Results 2020 - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of February 18th, 2021 in m$ 1,060 740 560 40 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.17 1.17 1.13 18 February 2021 Preliminary Full Year Results 2020 - Investor Relations 10 © MTU Aero Engines AG. The information contained her
Slide 11: Profit & Loss
Appendix Profit & Loss Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change Revenues 1,225 1,020 -17% 4,628 3,977 -14% Total cost of sales -988 -946 -3,697 -3,484 Gross profit 237 74 -69% 931 492 -47% Gross profit margin % 19.3% 7.3% 20.1% 12.4% R&D according to IFRS -20 -20 -66 -61 SG&A -49 -51 -203 -225
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change EBIT reported 186 22 -88% 706 262 -63% Adjustment (PPA Depreciation & Amortization) 5 5 21 21 Adjustment (IAE Upshare) 8 6 30 27 Adjustment (Restructuring) 0 -1 0 33 Adjustment (Impa
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change Revenues Group 1,225 1,020 -17% 4,628 3,977 -14% OEM Commercial 399 202 -49% 1,537 1,052 -32% OEM Military 135 187 38% 459 483 5% MRO 716 656 -8% 2,711 2,522 -7% Consolidation -25 -24 -79 -80 EBIT adjusted Group 19
Slide 14: Research & Development
Appendix Research & Development Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change Total R&D 48 46 -2% 214 186 -13% Customer funded R&D -9 -12 -38% -31 -33 -6% Company expensed R&D 39 35 -11% 183 153 -16% Capitalization of R&D -7 -7 -83 -58 Amortisation 7 6 22 24 Total R&D impact P&L (on EBIT) 39 33 -14%
Slide 15: Financial Result
Appendix Financial Result Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change Interest income 1 1 -29% 6 3 -57% Interest expense -3 -7 -99% -24 -22 5% Interest result -2 -6 -167% -17 -20 -14% Financial result on other items -13 -14 -22 -47 US$ / non cash valuations / others -9 -12 -7 -38 Interest for pens
Slide 16: MTU's Cash development January – December 2020
Appendix MTU’s Cash development January – December 2020 633 Free Cashflow: +105 -11 36 504 -245 773 386 -11 -25 0 139 Adjusted Non-operating exceptional items: -36 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Fina
Slide 17: Cash Flow
Appendix Cash Flow (in m €) FY 2019 FY 2020 Change Net Income IFRS 488 147 -70% Depreciation and amortization 260 352 Change in provisions and liabilities 176 -112 Change in working capital -142 -25 Taxes 42 27 Interest, derivatives, others 8 -3 Cash Flow from operating activities 832 386 -54% Net I
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2019 31.12.2020 Change Bonds and notes 100 603 Convertible bonds 562 538 Promissory note 0 100 Financial liabilities to bank 40 30 thereof Revolving Credit Facility 0 0 thereof bonds and notes 30 30 Financial lease liabilities 147 177 Financial liabilities arising fr
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2019 31.12.2020 Change Inventories 1,279 1,279 Prepayments -396 -457 Receivables 2,083 1,949 Payables -1,456 -1,236 Working Capital 1,510 1,535 2% 18 February 2021 Preliminary Full Year Results 2020 - Investor Relations 19 © MTU Aero Engines AG. The informatio
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2019 31.12.2020 Change Intangible assets 1,163 1,135 Property, plant, equipment 1,101 1,161 other non-current assets 1,892 1,733 Total non-current assets 4,155 4,030 -3% Current assets 3,610 4,074 13% Total assets 7,765 8,104 4% Equity 2,421 2,635 9% Non-current
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q4 2019 Q4 2020 Change FY 2019 FY 2020 Change OEM 50 122 183 264 MRO 20 25 77 86 Total depreciation / amortization* 71 147 108% 260 350 35% PPA OEM 5 5 19 18 PPA MRO 1 1 2 2 IAE Upshare OEM 8 6 30 27 PPA depreciation / amortization & IAE Upshare amortization
Slide 22: Guidance for PPA and IAE Upshare Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) 2020 2021E 2022E 2023E PPA depreciation / amortization 21 21 20 19 IAE Upshare 27 24 24 24 Adjustments PPA / IAE Upshare 48 45 44 43 Guidance for R&D Amortization (in m€) 2020 2021E 2022E 2023E R&D amortization 24 25 27 32 18 February 20
Slide 23: 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 24: 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