Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2020 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Oct 29, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results Conference call with Investors and Analysts 10/29/2020 – Investor Relations
Slide 2: Q3 2020 Review
Q3 2020 Review • IATA outlook 2020 passenger traffic (RPKs) down 66% compared to 2019 • Cargo traffic robust especially for dedicated freighters • Ongoing strong demand for freighter aftermarket business • Independent MRO contract wins of over 3.9 bn US$ • F108 operated by the US Air Force to be mai
Slide 3: Financial Highlights 9M 2020
Financial Highlights 9M 2020 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 3,404 -13% 2,957 558 (16.4%) -44% 392 311 (10.5%) -44% 303 219 -52% 145 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 29 October 2020 Results Q3 2020 - Investor Relati
Slide 4: OEM Segment
OEM Segment (in m €) 9M 2019 9M 2020 Change Revenues 1,461 1,146 -22% Military Business 324 296 -8% Commercial Business 1,138 850 -25% EBIT adj. 370 194 -47% EBIT adj. margin % 25.3% 16.9% • US$ Commercial revenues down by 25% • Military revenues down by 8% • EBIT margin down due to change in busine
Slide 5: Commercial MRO
Commercial MRO (in m €) 9M 2019 9M 2020 Change Revenues 1,996 1,866 -6% EBIT adj. 187 116 -38% EBIT adj. margin % 9.4% 6.2% • US$ Revenues down by 6% • EBIT margin down due to higher PW1100G MRO work and lower capacity utilization 29 October 2020 Results Q3 2020 - Investor Relations 5 © MTU Aero Eng
Slide 6: Update on our Guidance 2020
Update on our Guidance 2020 Organic Growth Military revenues Slightly up Commercial OE Down mid to high twenties % Commercial Spares Down high twenties % Commercial MRO Down mid single digit % Revenues in € 4.0 – 4.2 bn € EBIT adj. margin ~10% Net Income adj. Decline in line with EBIT adj. 29 Octobe
Slide 7: Appendix
Appendix 29 October 2020 Results Q3 2020 - Investor Relations 7 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 8: Group Order Book in USD almost stable
Appendix Group Order Book in USD almost stable 19.8 bn€ -5% 18.8 bn€ Order book 2019/12/31 Order book 2020/09/30 29 October 2020 Results Q3 2020 - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of October 29th, 2020 in m$ 1,290 1,060 740 440 40 2020 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.18 1.17 1.16 1.13 29 October 2020 Results Q3 2020 - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is
Slide 10: Profit & Loss
Appendix Profit & Loss Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change Revenues 1,161 908 -22% 3,404 2,957 -13% Total cost of sales -920 -805 -2,709 -2,539 Gross profit 241 103 -57% 695 418 -40% Gross profit margin % 20.8% 11.4% 20.4% 14.1% R&D according to IFRS -17 -16 -45 -41 SG&A -50 -56 -154 -174
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change EBIT reported 180 41 -77% 519 240 -54% Adjustment (PPA Depreciation & Amortization) 5 5 16 16 Adjustment (IAE Upshare) 8 6 23 21 Adjustment (Restructuring) 0 34 0 34 EBIT adjusted 19
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change Revenues Group 1,161 908 -22% 3,404 2,957 -13% OEM Commercial 365 220 -40% 1,138 850 -25% OEM Military 108 113 5% 324 296 -8% MRO 709 594 -16% 1,996 1,866 -6% Consolidation -20 -19 -54 -56 EBIT adjusted Group 193 8
Slide 13: Research & Development
Appendix Research & Development Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change Total R&D 55 41 -24% 167 139 -16% Customer funded R&D -6 -7 -2% -23 -21 7% Company expensed R&D 48 35 -28% 144 119 -18% Capitalization of R&D -27 -17 -76 -50 Amortisation 5 6 15 17 Total R&D impact P&L (on EBIT) 27 24 -13%
Slide 14: Financial Result
Appendix Financial Result Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change Interest income 2 0 -80% 5 2 -63% Interest expense -12 -8 35% -20 -15 23% Interest result -11 -8 28% -15 -14 10% Financial result on other items 5 -17 -9 -33 US$ / non cash valuations / others 8 -15 2 -26 Interest for pension pr
Slide 15: MTU's Cash development January – September 2020
Appendix MTU’s Cash development January – September 2020 699 Free Cashflow: +145 37 -9 527 839 -120 -12 -25 0 302 140 Adjusted Non-operating exceptional items: -37 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Fina
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 9M 2019 9M 2020 Change Net Income IFRS 355 141 -60% Depreciation and amortization 189 203 Change in provisions and liabilities 139 -91 Change in working capital -124 63 Taxes 32 -9 Interest, derivatives, others 18 -6 Cash Flow from operating activities 609 302 -50% Net In
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2019 30.09.2020 Change Bonds and notes 100 598 Convertible bonds 562 565 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 147 166 Loans from related companies and
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2019 30.09.2020 Change Inventories 1,279 1,328 Prepayments -396 -395 Receivables 2,083 1,741 Payables -1,456 -1,228 Working Capital 1,510 1,446 -4% 29 October 2020 Results Q3 2020 - Investor Relations 18 © MTU Aero Engines AG. The information contained herein
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2019 30.09.2020 Change Intangible assets 1,163 1,134 Property, plant, equipment 1,101 1,104 other non-current assets 1,892 1,779 Total non-current assets 4,155 4,017 -3% Current assets 3,610 4,020 11% Total assets 7,765 8,038 4% Equity 2,421 2,585 7% Non-current
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change OEM 45 47 132 142 MRO 23 19 57 62 Total depreciation / amortization* 68 67 -2% 189 203 8% PPA OEM 5 5 14 14 PPA MRO 1 1 2 2 IAE Upshare OEM 8 6 23 21 PPA depreciation / amortization & IAE Upshare amortization (EBI
Slide 21: 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 22: 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