Facc Ag · VIE:FACC

Facc — H1 2014/15 Earnings Presentation

23 slides from Facc's earnings presentation, Oct 16, 2014

  1. Slide 1: H1 2014/15 Results Presentation

    H1 2014/15 Results Presentation 16 October 2014 This document contains information which is proprietary to FACC or other companies. Page 1 Any reproduction, disclosure or use of this information without FACC‘s prior written consent is expressly prohibited.

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation (the “Presentation’), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the

  3. Slide 3: Agenda

    1 Market Update 4 2 Operations Update 7 3 Financial Highlights 15 4 Executive Summary 23 Page 3

  4. Slide 4: The super-cycle continues

    The super-cycle continues  Airbus and Boeing issued their expected annual deliveries forecast for the 2014-2033 period − ~35,000 aircraft over 100 seats are expected to be delivered over the next 20 years − On average, Airbus and Boeing updated their forecast by (i) 5% by number of aircraft, and (i

  5. Slide 5: Major milestones

    Major milestones  A350 certified by EASA in September of 2014  The first A320 NEO has started it flight test program on schedule, taking off with components from FACC AG  The first Challenger 350 was delivered to Netjets on 27 June 2014 after the aircraft was certified by authorities  The first

  6. Slide 6: Agenda

    1 Market Update 4 2 Operations Update 7 3 Financial Highlights 15 4 Executive Summary 23 Page 6

  7. Slide 7: Highlights and achievements

    Highlights and achievements Operational milestones achieved in Q1 & Q2 to support growth in future quarters +15% growth in operational output across FACC 1 FACC Wichita operation fully established and ramped up for B737 major winglet retrofit program. 5 Completion of Interior facility 2 extension. P

  8. Slide 8: Highlights and achievements

    Highlights and achievements Transformation of the Interior facility from cell- to paced production line completed  Goal: Optimized production flow for A320, Value Stream A380, A350XWB interior Design  CIP & VSM for new Lay out Achievements Facility  Support of A350XWB future ramp-up to  25% redu

  9. Slide 9: "Double-Digit" growth in operational output

    “Double-Digit” growth in operational output The product related revenue grew by 15,1 %. New projects are gaining further sales volume and will drive future revenues. Comments: Comments:  Sales growth in all division  The product portfolio is changing to programs with strong future revenue potentia

  10. Slide 10: "Double-Digit" growth in operational output

    “Double-Digit” growth in operational output The Aerostructures division showed the highest growth in H1 Comments Aerostructures Comments Engines & Nacelle  +24,9% overall product sales increase  Stable engine business but order adjustment (downwards)  B787, A350 XWB and A321 are main growth drive

  11. Slide 11: "Double-Digit" growth in operational output

    “Double-Digit” growth in operational output Interior business is growing close to 10%. The product mix in the business jet area has turned – discontinued programs were replaced with new cabin interior developments Comments Interior general Comments Interior - Business Jets  +9,21% overall product s

  12. Slide 12: Strong performance and high quality convinced leading OEMs to intensify partnership

    Strong performance and high quality convinced leading OEMs to intensify their partnership with FACC Market share gains on the A320 family flagship program Shipset value delivered by FACC – Status at IPO Roll Out since June 2014 A321 A320  More A320 Family business won since the 231% June 2014 IPO.

  13. Slide 13: New Product Introduction – Ramp up snapshot

    New Product Introduction – Ramp up snapshot Strong growth from new programs, changes in the Interiors model mix and expected increases in deliveries for H2 2014/15 led to front loading of capacity increases during the first half of the year ALL DIVISIONS - PRODUCT SALES FY 2014 vs FY 2015 (Mar - Aug

  14. Slide 14: Operations Overview - Summary

    Operations Overview - Summary  H1/2014 output growth in all divisions thanks to ramp up of new products  Strong growth from new programs following portfolio changes:  New business generating 37% of sales volume in Aug. 2014, up from 15% in Aug. 2013  Business jet interior product portfolio renew

  15. Slide 15: Agenda

    1 Market Update 4 2 Operations Update 7 3 Financial Highlights 16 4 Executive Summary 23 Page 15

  16. Slide 16: Financial snapshot

    Financial snapshot  Positive developments to support future growth Order Backlog − Three additional work packages on the A320 Neo − FACC selected as supply partner for the new Boeing 787-10  Revenue H1 2014/15 up 3.4% Y-o-Y driven by continued growth in product revenues, Revenues Evolution partial

  17. Slide 17: Revenue

    Revenue Revenue by segment (€mm) Comments  Group total revenue up 3.4% Y-o-Y, in line with budget − Increase in product revenue of €29.3 mm (+15,1%) Y-o-Y Growth: +3.4% − Revenues related to development services down €21.5 236 mm due to unfavorable comparison with 2013/14, 228 unusually H1 weighted

  18. Slide 18: Group EBITDA and EBIT

    Group EBITDA and EBIT EBITDA (€mm) Comments  Negative group margins in H1 2014/15: − (1.8%) EBITDA margin vs. 7.1% in H1 2013/14 16 − (6.1%) EBIT margin vs. 3.4% in H1 2013/14 7,1% (4)  Aerostructures profitability impacted by lower revenues from development services (milestones contracts) vs. H1

  19. Slide 19: Research and Development

    Research and Development R&D costs (€mm) Comments R&D spend – 13.4% 11.4%  Total R&D (capitalized and expensed) costs decreased by % of revenues 11.6% Y-o-Y 30 − Significant number of applied research programs were concluded in H1 2014/15 27  Increase in capitalized R&D driven by A350 development

  20. Slide 20: Capital Expenditures

    Capital Expenditures Capital Expenditure (€mm) Comments % of 10.8% 14.9%  Capital expenditures increased from 10.8% to 14.9% of total revenues revenues − In line with the investment budget 35  Investment in tangible assets mainly consisted of (i) planned investments in the expansion of Plant II, (

  21. Slide 21: Working Capital

    Working Capital NWC by Asset / Liability Type (€mm) Comments  Significant growth in inventories to support the stronger delivery volumes expected in H2 2014/15 196 22 146 35  Increase in receivables under construction 19 25  Design improvement for A380 96  A330 wing fairing – introduction of new

  22. Slide 22: Agenda

    1 Market Update 4 2 Operations Update 7 3 Financial Highlights 15 4 Executive Summary 23 Page 22

  23. Slide 23: Executive Summary

    Executive Summary  Our order backlog benefits from the Aerospace super-cycle  The order backlog is growing with the ramp up of new business  Our market share is increasing with additional long term contracts executed with key OEMs  Revenues increased in line with expectation  H1 profitability t

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