Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2013 Earnings Presentation
26 slides from Mtu Aero Engines's earnings presentation, Apr 25, 2013
Slide 1: Q1 2013 Results - MTU Aero Engines
Q1 2013 Results - MTU Aero Engines Conference Call with Investors and Analysts 25 April 2013
Slide 2: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 2
Slide 3: Business Highlights
Business Highlights • Strong revenue growth of 35% in Q1 2013 • Guidance 2013 confirmed • Ongoing market success for GTF platforms Global Passenger Traffic Market Environment 30% • Global Passenger traffic up by 3.7 % (y-o-y) in 500 February (3.1 % ytd) 20% 400 • Growth was led by Middle-East (9.8%)
Slide 4: Commercial OEM Business
Commercial OEM Business • Embraer selected GTF for Next Gen of E-Jets • Over 3,500 GTF engines on order incl. options* • Certification for PW1500G engine received from Transport Canada • First PW1100G engine successfully completed ground testing • Preparations ongoing for first Flight Tests • New Ce
Slide 5: Commercial MRO Business and Military Business
Commercial MRO Business • Contract wins of US$ 600 m in Q1/13 • US$ 440 m MRO CFM56-7 contract signed with GOL • New logistics center opened in Hanover facility • MRO US$-revenues up 21% in Q1/13 y-o-y Military Business • Ramp up of TP400-D6 series production • Export order of 12 Eurofighter Typhoon
Slide 6: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 6
Slide 7: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 1.000 +35% 300 13,1% 15,0% 945 800 9,5% 600 698 200 10,0% 400 100 -2% 5,0% 200 91 89 0 0 0,0% 3M 2012 3M 2013 3M 2012 3M 2013 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 50 100 1,50 1,12 40 80 1,07 -103% 1,00 30 34
Slide 8: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 8
Slide 9: OEM Segment
OEM Segment Order book 31/12/2012 31/03/2013 Change Order book (m€) 5,640.4 5,654.9 0% Commercial Business (mUS$) 6,218.3 6,041.1 -3% Military Business (m€) 927.4 937.1 1% (m€) 3M 2012 3M 2013 Change Revenues 412.1 600.6 46% Commercial Business 296.8 488.4 65% Military Business 115.3 112.2 -3% • Com
Slide 10: OEM Segment
OEM Segment (m€) 3M 2012 3M 2013 Change Revenues 412.1 600.6 46% Gross Profit 102.0 93.1 -9% Gross Profit Margin % 24.8% 15.5% R&D according to IFRS (P&L) 27.7 28.0 1% EBIT adj. 68.8 59.1 -14% EBIT adj. Margin % 16.7% 9.8% • Revenues up 46% driven by sharp increase of series volumes • Gross profit i
Slide 11: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2012 31/03/2013 Change Contract volume (incl. order book) 7,704.2 7,595.1 -1% (m€) 3M 2012 3M 2013 Revenues 293.2 352.0 20% Gross Profit 38.9 47.1 21% Gross Profit Margin % 13.3% 13.4% EBIT adj. 24.3 29.2 20% EBIT adj. Margin % 8.3% 8.3% • Contract volume remaine
Slide 12: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 12
Slide 13: P&L Highlights
P&L Highlights (m€) 3M 2012 3M 2013 Change Revenues 698.0 944.7 35% EBIT adj. 91.4 89.3 -2% Interest Result -0.8 -3.5 Interests for pension provisions -6.2 -5.0 Financial Result * -7.0 -8.5 -21% EBT adj. * 84.4 80.8 -4% Tax (tax rate 32,6% ) -27.5 -26.3 Net Income adj. * 56.9 54.5 -4% EPS adj. * 1.1
Slide 14: Free Cash Flow
Free Cash Flow Cash Flow (m€) Comments Cash Flow from operating activities 40 • Decreased by € 38 m to € 27.5 m (Q1 2012: € 65.5 m) 30 34 Cash Flow from investing activities* at € -26.5 m 20 26 (Q1 2012: € -29.2 m) • Investment in PPE at € 16.8 m 10 (Q1 2012: € 19.5 m) -1 • Investment in intangible
Slide 15: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of April 25, 2013 (% of net exposure) (mUS$) 825 (=78%) 635 (=56%) 420 (=36%) 120 (=9%) 2013 2014 2015 2016 1.31 1.30 1.27 1.23 Average hedge rate (US$/EUR) April 25, 2013 Q1 2013 Results - Investor Relations 15
Slide 16: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 16
Slide 17: Guidance 2013 confirmed
Guidance 2013 confirmed (m€) FY 2012 Guidance 2013 Revenues 3,378.6 + 10% - 12% EBIT adj. 374.3 + 10% - 12% EBIT adj. Margin 11.1% Net Income adj. * 233.4 + 10% - 12% * w/o market-to-market valuations of US$, Nickel, Options and others April 25, 2013 Q1 2013 Results - Investor Relations 17
Slide 18: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix April 25, 2013 Q1 2013 Results - Investor Relations 18
Slide 19: Profit & Loss
Appendix Profit & Loss (m€) Q1 2012 Q1 2013 Change Revenues 698.0 944.7 35% Total Cost of Sales -554.3 -802.8 Gross Profit 143.7 141.9 -1% Gross Profit Margin 20.6% 15.0% R&D company funded -28.7 -28.7 SG&A -34.7 -39.8 Other operating income (expense) 1.4 1.4 Operating income from investments 0.0 0.
Slide 20: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. in m€ Q1 2012 Q1 2013 Change Revenues Group 698,0 944,7 35% OEM Commercial 296,8 488,4 65% OEM Military 115,3 112,2 -3% MRO 293,2 352,0 20% Consolidation -7,3 -7,9 EBIT adj. Group 91,4 89,3 -2% OEM (Commercial / Military) 68,8 59,1 -14% MRO 24,3 29,2 20% Conso
Slide 21: Research & Development
Appendix Research & Development (m€) Q1 2012 Q1 2013 Change Company expensed R&D 39.8 40.1 1% OEM 38.7 39.2 MRO 1.1 0.9 Capitalization of R&D -11.1 -11.4 OEM -11.0 -11.2 MRO -0.1 -0.2 R&D according to IFRS 28.7 28.7 0% Customer funded R&D 27.8 13.8 Total R&D 67.6 53.9 -20% April 25, 2013 Q1 2013 Res
Slide 22: Cash Flow
Appendix Cash Flow (m€) 3M 2012 3M 2013 Change Net Income IFRS 54.0 36.3 -33% Depreciation and amortization 33.5 40.4 Change in provisions * 11.2 9.2 Change in Working Capital -26.0 -74.5 Taxes 0.4 1.7 Interest, derivatives, others -9.7 12.5 Cash Flow from operating activities 63.4 25.6 -60% Cash Fl
Slide 23: Working Capital
Appendix Working Capital (m€) 31/12/2012 31/03/2013 Change Change in % Gross inventories 808.8 825.8 17.0 Prepayments -604.0 -626.2 -22.2 Receivables 789.9 813.7 23.8 Payables -797.7 -741.8 55.9 Working Capital 197.0 271.5 74.5 38% April 25, 2013 Q1 2013 Results - Investor Relations 23
Slide 24: Net debt of € 468.6 m
Appendix Net debt of € 468.6 m Dec. 31, 2012 March 31, 2013 (m€) Financial assets 750 Derivative financial 661 assets 619 45 Cash and cash Equivalents / 600 16 Short-term financial securities Net debt Net debt 300 Financial liabilities 450 300 € 391 m € 469 m Derivative financial liabilities V2500 /
Slide 25: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) Total depreciation / amortization Q1 2012 Q1 2013 MTU total 33.5 40.4 OEM 26.1 31.7 MRO 7.4 8.7 PPA depreciation / amortization Q1 2012 Q1 2013 MTU total 9.7 9.0 OEM 8.8 8.1 MRO 0.9 0.9 Depreciation / amortization w/o PPA Q1 2012 Q1 2013 MTU total 23.
Slide 26: 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